ATTEMPTS by Brussels to rein in Microsoft’s dominance of the music software market suffered a setback after the disclosure that computer manufacturers failed to install software aimed at freeing up the market.

Last year the European Commission ordered Microsoft to release a new version of its Windows software that excluded Windows Media Player, its audio and video player. The Commission had hoped that the new software, which would sit alongside the existing Windows product, would make it easier for rival music software providers to compete.

However, Microsoft has revealed that no computer manufacturers have taken up the option to install the new “unbundled” software.

Alistair Baker, Microsoft’s UK managing director, confirmed that no computer manufacturers had adopted the product since its launch four months ago.

Big retailers also seem unwilling to stock the new version of Windows. PC World, a sister brand to Dixons, stocks only the original Windows version.

Asked whether retailers had bought supplies of the “unbundled” Windows product, Mr Baker said: “I don’t know if it’s true to say they haven’t bought any (but) I’d be very surprised if we’ve sold any.”

Microsoft’s revenues are directly linked to the number of PCs that are sold with pre-installed versions of Windows operating systems. Software sold on to new PCs accounts for more than 80 per cent of Windows sales.

The Commission ruled in March last year that Microsoft’s inclusion of the Windows Media Player with its Windows XP operating system was anti-competitive. Windows Media Player competes with software including Apple’s QuickTime and RealNetworks RealPlayer.

The Commission’s order to start selling a separate edition of Windows XP was accompanied by a €497 million (£337 million) fine. Microsoft was also ordered to reveal the “blueprints” of its Windows software to other software developers.

Microsoft paid the fine but legal wrangling delayed the implementation of the orders. The “unbundled” Windows software was finally released this June.

Analysts gave warning at the time of the Commission’s ruling that a version of Windows stripped of Windows Media Player would not prove attractive to computer manufacturers.

A spokesman for the Commission said yesterday that it was closely monitoring the implementation of its orders. The Commission could raise objections if Microsoft is found to have let commercial, technical or contractual terms affect demand for the new “unbundled” product.

The Commission yesterday appointed Neil Barrett, a specialist in internet crime, to act as a trustee to monitor the software group’s implementation of the orders.

Professor Barrett, who was one of several candidates proposed by Microsoft, will determine whether the company has complied with the ruling.

Neelie Kroes, the European Union Competition Commissioner, welcomed the appointment. She held talks yesterday with Steve Ballmer, Microsoft’s chief executive, over “a broad range of competition issues”. The pair will hold regular meetings in the future.

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