[link|http://www.crn.com/sections/BreakingNews/dailyarchives.asp?ArticleID=48002|CRN]
European Union regulators have rejected as insufficient Microsoft's latest offer to settle long-running antitrust charges but are continuing talks, sources said Tuesday.

With a verdict due this spring, the U.S. software giant has been scrambling to avert what could be a far-reaching order to change the way it packages its dominant Windows desktop operation system and reveal more of its underlying code to rival manufacturers.

MS's proposal was the absolute mininum that might be considered to in some way meet the EU goals of opening the Windows platform to more software. No surprise that this proposal was rejected, but MS is negotiating to find the least they can do and still satisfy the regulators. Hopefully the EU regulators hold out for some serious concessions and some big money.

Jay