EU panel backs record-setting fine against Microsoft

BRUSSELS, Belgium — European Union antitrust officials won backing Monday for a reportedly record-setting fine against Microsoft Corp., the last hurdle before adopting a decision that could also force far-reaching changes in how the U.S. software company sells Windows.

Representatives from the 15 EU governments met for less than an hour behind closed doors to review the fine proposed by EU Competition Commissioner Mario Monti. A source familiar with the case, but speaking on condition of anonymity, told The Associated Press they agreed to it but declined to elaborate.

Other sources, also speaking on condition they not be identified, estimated the fine would run into the hundreds of millions of dollars when the European Commission, the EU's executive body, issues its ruling Wednesday.

Dow Jones Newswires and German business daily Handelsblatt, both citing unidentified sources familiar with the matter, reported the fine would be about 500 million euros ($615 million).

That would be a record for the EU in an antitrust case but far below the maximum of around $3.5 billion that could be imposed in Microsoft's case. The company, based in Redmond, Wash., has cash reserves in excess of $50 billion.

Commission spokeswoman Amelia Torres refused to comment on the meeting or the reports.

Shares of Microsoft fell 13 cents to close at $24.50 Monday on the Nasdaq Stock Market. The shares have fallen about 3 percent since settlement talks fell apart.

EU rules allow the commission to fine antitrust violators as much as 10 percent of annual global revenue. In practice they have been far lower. The largest ever imposed was less than 2 percent — 462 million euros ($568 million) — against Roche Holding AG, one of several companies caught fixing the prices of bulk vitamins in 2001.

The record penalty for charges similar to those Microsoft faces — abusing a monopoly position — is 75 million euros ($92 million) imposed on Swedish packaging giant Tetra Pak AB in 1991.

Monday's meeting came a week after the same advisory panel unanimously backed Monti's draft ruling, which sources familiar with the 5-year-old case say finds Microsoft abused its Windows monopoly, harming consumers and competitors in the markets for digital media and server software.

The EU is expected to order Microsoft to release more of the underlying code for Windows to rivals in the server market, and deliver a version of Windows without its Windows Media Player software in Europe to help competing products reach desktops.