Microsoft to implement Windows changes

Microsoft will implement all of the major changes to its new stripped-down version of Windows requested by the European Commission, the software giant said on Tuesday. The European Union's executive had ordered Microsoft to sell a version of the world's dominant computer operating system without its Windows Media Player program after ruling that the company had abused the near-monopoly of Windows to crush competition and fining it nearly 500 million euros ($650 million).
The Commission's order is meant to open the market for alternative software to play films and music from RealNetworks, Apple and others, but the two sides disagreed over technical issues.
"Earlier today we contacted the Commission and informed them that we have accepted all the main changes they have requested we make to the version of Windows without Media Player," said Horacio Gutierrez, Microsoft's top lawyer in Europe.
The modifications include technical changes to "registry settings" and removing references in product documents and packaging that warn that certain products won't work without Media Player, Gutierrez told Reuters by telephone.
Microsoft also agreed to create a software package allowing consumers to replace the absent media files, he added, which could be downloaded for free from the company's Web site.
On Monday Microsoft said it would adopt the Commission's suggested name for the operating system, "Windows XP Home Edition N", after the EU antitrust authority rejected 10 options from Microsoft.
Gutierrez said "a few technical issues" remained to be resolved but added: "This basically takes care of 99 percent of the things they asked for."
Microsoft is appealing the Commission's landmark decision. Other disputes are still simmering about a second order to share information with rival makers of servers and the appointment of a trustee to monitor Microsoft's compliance.
Microsoft may ultimately face fines of up to $5 million a day if the Commission finds it is refusing to comply with its decision.
Microsoft's technical changes may pacify critics such as RealNetworks, which complained that removing Media Player also took out some multipurpose "registry keys" - something Microsoft tells third-party developers not to do - that can disable other programs.