Brussels: The European Union (EU) today (March 24, 2004) declared Microsoft Corp guilty of abusing its "near monopoly'' with Windows to squeeze competitors in other markets and levied a record fine of $ 613 million.

The EU's anti-trust authority said that "because the illegal behaviour is still ongoing", it was also demanding changes in the way the US software company operates.

It gave Microsoft 90 days to offer a version of Windows to PC manufacturers without its digital media player, and 120 days for Microsoft to release "complete and accurate'' interface code to rivals in the server market so their products can have "full interoperability'' with desktop computers running Windows.

"Dominant companies have a special responsibility to ensure that the way they do business doesn't prevent competition...and does not harm consumers and innovation,'' EU Competition Commissioner Mario Monti said.

"Today's decision restores the conditions for fair competition in the markets concerned and establish clear principles for the future conduct of a company with such a strong dominant position.''

Microsoft has just over two months to file its promised appeal. It also is expected to ask the EU's Court of First Instance to suspend the order during the appeal process, which could take years.

The order goes beyond the 2001 US settlement on similar anti-trust charges and aims at the heart of Microsoft's business strategy of regularly adding new features to Windows to help sell upgrades.