The European Commission has finished drafting a decision in its anti-competition case against Microsoft.
It has ruled that Microsoft has abused its dominant position in the European market and broken European competition law, according to a report in the Financial Times.
The Commission has claimed that Microsoft tied its Media Player software into Windows in such a way as to deter innovation by rivals.
Although negotiations with Microsoft are ongoing, the Commission has already begun discussing its decision.
"There is a draft on the table and this should come as no surprise. After all, the investigation has been going on for long enough," a Commission spokeswoman told the BBC.
"The final stage was the hearing in November and now we have to conclude."
The European legal wranglings come in the wake of the long-running anti-trust case in the US between Microsoft and the Department of Justice.
Since being found guilty in this case, Microsoft has been forced to do business under a set of restrictions designed to reduce the software monopoly which it enjoys due to the ubiquity of Windows.
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