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EU rejects Microsoft 'veto' plan

The European Commission has rejected as unacceptable proposals by US software giant Microsoft for the application of competition measures the commission imposed in March 2004.

A commission spokesman said the body had told Microsoft officially that a proposal it had made for how a mediator would be involved was 'unacceptable'.

'Microsoft wanted a right of veto on the questions which the mediator could study,' the spokesman said.

In March last year the commission imposed a record fine of €497m on Microsoft and said it had to make available a version of its software Windows without the Media Player video software.

It also obliged Microsoft to make available information needed by producers of competing products to enable them to communicate with Windows.

The commission had said at the time that the conditions had to be applied efficiently and within a determined timetable, and that it would appoint someone charged with overseeing the process.

A Microsoft spokesman said the company would study the commission's objection constructively and would reply quickly.