Microsoft and the European Commission have removed a crucial obstacle in resolving their battle over last year's antitrust ruling, after the group accepted the regulator's proposed name for a new version of its operating system Windows.
The move ends a protracted dispute over how to brand the version of Microsoft's flagship product that will be sold without its Media Player software.
The order to make this version available to consumers and computer manufacturers was part of Brussels' landmark decision last March against Microsoft. The group employs 1,200 people in the Republic.
The commission found Microsoft guilty of abusing its dominant position in the market for computer operating systems by shutting out rivals in markets such as media player software.
Over the past four months, the EU's leading antitrust regulator had dismissed a string of name suggestions by Microsoft, arguing they would deter consumers and lead them to stick with the fully integrated Windows version, which will continue to be sold.
Brussels was particularly critical of a December proposal by the group to brand the new version as a "reduced media edition".
Microsoft general counsel for Europe, Horacio Gutierrez, said the dispute had now been resolved. The unbundled version of Microsoft's XP Home Edition will be branded as XP Home Edition N, as suggested by the European Commission.
Mr Gutierrez said: "Two months ago, Microsoft provided the Commission with nine additional names and took the unusual step of offering to adopt any name chosen by the Commission from this list.
"We were disappointed that the Commission also rejected all nine names proposed by Microsoft, which included options like 'Windows XP-N' and 'Windows XP not including Windows Media Player'."
He added: "We have some misgivings about the chosen name as we fear it may cause confusion for consumers buying the product, but we are adopting the Commission's name in order to move forward and accelerate the pace of the implementation process."
The two sides have been at loggerheads for months over how to implement the March ruling.
The commission has even threatened to impose new financial penalties on the group, in addition to the record €497 million fine it handed down last March.
The fiercest disagreements rage over the forced licensing of sensitive information to Microsoft rivals, which Brussels argues the group is making available too expensively.
But Microsoft was also told last Thursday that it must improve the functioning of the new Windows version without Media Player. - (Financial Times service)
