The European Commission said on Wednesday it expected to reach a conclusion next year in its antitrust probe of U.S. software giant Microsoft.Microsoft, fresh from settling the U.S. government's antitrust case, said on Tuesday it was interested in settling European Union allegations it had violated antitrust laws in Europe. The U.S.-based company also said it would forgo a December hearing with European regulators on charges it abused the dominant power it holds though its Windows operating systems.

European Commission spokeswoman Amelia Torres said it was a company's right if it did not wish to have a hearing. ``The investigation will just continue,'' Torres told the Commission's daily news briefing. She said the Commission was studying the reply sent by Microsoft to the Commission's allegations. ``The Commission will then have to reach a conclusion which will probably be next year,'' she said. The Commission has been investigating whether Microsoft violated European Union law by designing its Windows operating system to work better with its own server software than that of rivals. It also is investigating whether Microsoft tied its Media Player software to its operating system.