A leaked report from the European Commission has revealed that European Union antitrust enforcers could fine Microsoft if it doesn't drop some features from its upcoming Windows XP software.
But European Competition Commissioner Mario Monti was quick to address the leak. He said that despite the report, it was "premature" to speculate that the Redmond giant would definitely be fined, as the company had still not replied to the Commission's findings from the antitrust investigation.
The document, published earlier this week by the Wall Street Journal, suggested that a fine is "always a possibility" and may amount to as much as 10 per cent of the company's annual revenue, or around £1.7bn ($2.5bn).
It argues that Windows XP is so comprehensive that it leads users to use more Microsoft products, rather than third-party software. It also says that the software giant has used its dominant position to wrest more market share.
According to the Journal, the EU also alleges that Microsoft sought to mislead investigators and obstruct the long running antitrust investigation into the firm.
The report states that the EU could press for changes in future software releases in a bid to end the alleged violations.
"We remain committed to working with the Commission to resolve this," a Microsoft spokesman was quoted as saying in the report.
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