Matthew Newman writes that Microsoft "is in preliminary talks to settle two additional probes before EU Competition Commissioner Neelie Kroes leaves office, four people familiar with the negotiations said."  The probes concern Internet Explorer and office productivity software.

As for the time limit, Kroes is supposed to make her exit in coordination with the Barroso Commission, and it’s only due to serve through October 31st of this year.  (This timeframe also makes some sense given that Windows 7 is supposed to launch in October.)

So the pressure for Microsoft to find a solution is on, then.  Since Newman notes, "The commission has fined Microsoft a total of 1.68 billion euros for abusing its market dominance and failing to comply with a 2004 antitrust order," not doing so could be disastrous.

Still, Microsoft’s investors seem unimpressed with the company’s effort, sending its stock down 2.89 percent today while the Dow and Nasdaq went down just 1.94 percent and 2.31 percent, respectively.

Microsoft battled that decision as well. The ongoing battle seems headed for a wrapup, with European Commissioner Neelie Kroes saying in a Bloomberg report the two sides have finally found an end to their fight:

“These changes in Microsoft’s practices will profoundly affect software industries,” European Competition Commissioner Neelie Kroes told reporters in Brussels today. “I sincerely hope that we can just close this dark chapter of our relationship.”

As recently as March 2007, Kroes threatened Microsoft with even more fines regarding their non-compliance with anti-competition rulings. Microsoft general counsel Brad Smith criticized the Commission for its interpretation of the standard under which software should be made available without royalties.

." The antitrust fight between Microsoft and the Commission has been going on since 2004. Microsoft has been threatened with fines and accused of footdragging, while the Commission has been accused of wanting to throw Microsoft’s technology into the wild. Matters escalated with the announcement that a still-displeased Commission considers Microsoft in violation of its antitrust ruling requirements.

 From an AP report:

"This is a company which apparently does not like to have to conform with antitrust decisions," said EU Commission spokesman Jonathan Todd. Under a 2004 antitrust ruling by the European Union, Microsoft had to disclose complete and accurate interface documentation on reasonable and non-discriminatory terms, allowing its competitors to interoperate with Windows PCs and servers.

The two sides have been exchanging flying drop kicks over the issue of innovation. Microsoft’s general counsel and senior VP Brad Smith said in a statement his company has "a different perspective on the underlying facts and the proposed findings" of the Commission. He cited PricewaterhouseCoopers, which found Microsoft’s proposed protocol pricing "at least 30 percent" under the market rate for comparable technology.

Smith also slammed the Commission’s stance in its findings that unless Microsoft’s technology is innovative and patentable, it must be made available royalty-free. "That has never been the standard for software or other intellectual property, and it misstates the test agreed to by the Commission and Microsoft in June 2005, which has been available on Microsoft’s website since that time," said Smith.

The Commission’s opinion has been largely unchanged through the years. In their latest statement, EU Antitrust Commissioner Neelie Kroes said, "I am therefore again obliged to take formal measures to ensure that Microsoft complies with its obligations." Microsoft has four weeks to reply to the Commission’s Statement of Objections.

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