Microsoft and the European Commission have agreed the software giant can sell a stripped-down version of its Windows operating system under the name "Windows XP Home Edition N", Microsoft said on Monday. The deal represents a small step in Microsoft's long battle with the European Union's executive, which last year ruled the software giant had abused the near-monopoly of Windows to crush competition, fined it nearly 500 million euros ($650 million), and ordered it to change its business practices.
The Commission ordered Microsoft to sell a version of Windows without its Windows Media Player audiovisual software and the two clashed over a suitable name. The Commission's order is meant to open the market for alternative software to play films and music, from RealNetworks , Apple and others.