EU: Microsoft Settlement Talks Fail, Ruling To Come Next Week

"We made substantial progress toward resolving the problems that had arisen in the past but we were unable to agree on commitments for future conduct," EU Competition Commissioner Mario Monti said. "In the end I had to ... decide what was best for competition and consumers in Europe."

He said he would also propose a fine when the decision is adopted on Wednesday.

Monti had been insisting that any settlement with Microsoft go beyond the draft ruling in changing the U.S. software giant's business tactics as the price for avoiding a precedent-setting finding of monopolistic abuses, sources familiar with the case said earlier.

Specifically, he was seeking commitments that could make a settlement more global and help resolve other antitrust cases currently pending against Microsoft that address similar issues, the sources said on condition of anonymity.

At his news conference, Monti said he decided 'competition and consumers will be better served with a decision that creates a strong precedent.

"It is essential to have a precedent that will set clear principles ... for the future conduct of a company with such a strong dominant position in the market," he said.

Monti, however, praised the "constructive and cooperative spirit" and "high degree of professionalism" of Microsoft's negotiating team, which over the past two days included Microsoft chief executive Steve Ballmer himself.

There was no immediate reaction from a Microsoft spokesman in Brussels.

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