European anti trust regulator Neelie Kroes has given Microsoft a dirty look – the kind that parents give their children when they haven’t done anything wrong… yet. And then they leave it up to little ones to determine where they should draw the line.

In a letter to Microsoft chief executive Steve Ballmer, Kroes warned the software vendor to show restraint in bundling services with its forthcoming Vista operating system. She didn't say which specific services were off limits, but mentioned that an ban on Vista sales is a very real option.

Security and online search allegedly are two areas of concern. Microsoft is new in the anti-virus and anti-spyware markets, and its MSN search engine only recently has become as capable as Google's and Yahoo's. So in both cases there are legitimate concerns that the company could use its Windows monopoly to push those services.

But Microsoft has publicly stated that it won't bundle its anti-virus software. And although MSN for years has been the default search engine for Internet Explorer, that hasn't stopped Google and Yahoo from beating the service on both features and market share.

It appears that Kroes is making a strategic move more than that she is making any real threats. Microsoft has yet to reach an agreement with the EU in the anti-monopoly case there, and negotiations are anything but smooth. Threatening with a ban on Vista sales might provide some grease to the process.

Tags: windows vista, microsoft, european union, neelie kroes

29 Mar 2006