Microsoft Corporation confirmed today that it has made a number of concessions to address concerns raised by the European Commission regarding the company’s compliance with the interoperability part of the Commission’s March 24, 2004 Decision. The concessions, outlined in a proposal the company submitted to the Commission last week, include an agreement to implement the interoperability measures on a worldwide basis. Microsoft also agreed to a new royalty structure for licensing its Windows protocols for use in non-Microsoft software products, with more offerings and greater customization.

“In order to resolve some complex issues over the past few weeks, we’ve made some tough concessions,” said Steve Ballmer, CEO, Microsoft Corporation. “We take our responsibilities in Europe very seriously, and will continue to focus on fulfilling all our obligations in every way we can.”

The European Commission has indicated that Microsoft’s measures and the company’s updated licensing program will now be subject to a market test among industry participants.

“We made important changes to address the Commission’s concerns," said Brad Smith, Microsoft’s General Counsel. “These interoperability measures will now apply on a worldwide basis instead of in Europe only.”