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EU gives Microsoft one more chance

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Microsoft is abusing its dominant position, the European Commission says.

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BRUSSELS, Belgium (CNN) -- The European Union has accused Microsoft of still abusing its dominant position, and says it is giving the company a final chance to defend itself.

The European Commission says Microsoft is unfairly using the "overwhelmingly dominant position" of its Windows operating system in personal computers to monopolize the market for server software.

It also alleges that Microsoft's inclusion of Windows Media Player in the Windows operating system hurts competing audiovisual software such as Apple QuickTime and Real Networks.

"In light of this evidence, the Commission's preliminary conclusion is that Microsoft's abuses are still ongoing," it said in a statement.

EU Competition Commissioner Mario Monti said the charge sheet sent to Microsoft also identified "appropriate remedies," including additional code Microsoft would have to disclose to competitors in the low-end server market to ensure a level playing field.

It also would have to either offer a version of Windows without the Media Player, or agree to carry rival players with Windows.

"We are determined to ensure that the final outcome of this case is to the benefit of innovation and consumers alike," Monti said.

The EU's executive Commission has been investigating Microsoft for four years.

Commission spokesman Tilman Lueder told reporters that Microsoft could face fines if the abuses continue. "We have now a very strong case. The case as it stands now is too strong to ignore," he said.

Microsoft has argued its 2002 settlement with U.S. authorities, combined with additional steps it has taken voluntarily, answer the charges about media and server software.

A Microsoft spokeswoman said the company was examining the Commission's statement, but said it was unfortunate that the investigation would now take longer.

"We are exmaining its contents thorougly now to assess the concerns in detail," spokeswoman Tiffany Steckler told Reuters.

"We take this investigation very seriously and will work hard to focus our efforts, responding to concerns and bringing this to a positive resolution."


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