MICROSOFT is holding out for the possibility of new settlement talks with regulators as an EU court decides this week whether to suspend antitrust sanctions.

The company was fined €497 million (£340 million) and ordered to alter its Windows software in March after the European Commission ruled it had abused its monopoly power in the software market. A reprieve this week would save the US software group from having to strip its Media Player software, which plays audio and video files, from some versions of its operating system.

The European Court of First Instance, the EU’s second-highest court, is expected to rule whether the company must comply now or wait years until a panel of judges hears its full appeal.

Microsoft must convince the court president, Bo Vesterdorf, that its case can be won on appeal and that its business will be irreparably harmed unless sanctions are suspended. The Commission says the sanctions would be meaningless if delayed, because the market will have moved on. It is understood that either side can appeal to the EU’s highest court, the European Court of Justice.

Companies seeking to delay implementation of sanctions typically fail and if the decision goes against Microsoft, it will be forced to sell two versions of Windows in Europe – one with Media Player and one without.

If Microsoft fails, it is understood that it will scrutinise the language of the response for indications that Mr Vesterdorf is willing to negotiate on a settlement of the wider case. Microsoft wants to reopen talks with the EU rather than wait years for a final favourable ruling.

Times Recommends

• Please help: maimed children of war want their lives back
• Cabal seizes diamond riches to buy power
• White House gatecrashers got to the president