"The EU victory in the case has the potential to set precedents on the nature of regulatory intervention in the technology industry. Should the semi-conductor companies be directed away from the software market, since they have the insight to build software products that utilise the hardware better than the competition? Should the middleware companies be prevented from entering the application software market, as they can be more effective here? Should application software companies be prevented from working in the platform software market, as a dominant position here could make it difficult for competing players? The list of questions goes on. The EU needs to give the market a clear signal on its future intent - there are many very worried technology companies this morning that want to understand if there are implications for them.

    "The situation that we are in now is that the case has got to a point where all parties concerned feel a need to show victory, no matter how pyrrhic, or to save face. A defeat for the EU would be a substantial blow to the EU and would stifle its ability to intervene in other elements of the technology market or in adjacent markets that, arguably, would benefit further from their attention. Microsoft cannot be seen to lose completely, as it would damage its ability to bring further innovation close to the operating system and, arguably, would create significant uncertainty on where the EU is happy for Microsoft to innovate. So… neither party wants to be seen to lose and a suitable rapprochement is needed that can bring the case to a long overdue and honourable end.

    "Our suggestion for a way forward has three simple steps:

    1.Both parties agree that the remedies, as implemented through previous measures, have now been substantially completed - enough to agree that no further action is necessary by Microsoft

    2.Both parties agree that there is a level of financial penalty that is appropriate for Microsoft to pay - probably at the level previously imposed by the EU.

    3.That the fines are hypothecated and used solely to fund development of the European technology industry - with the fund governed by a joint panel of Microsoft, the EU, other technology companies, and other representatives of the European industry.

    "Essentially this would be a Microsoft funded and European governed investment to create a better European technology industry. That would be a better use of European taxpayer and Microsoft money than paying for the creation of a product that nobody wants, documentation for poorly designed piece of legacy software that is nearly obsolete and further legal fees."