"We are not against a settlement if that is clearly in the consumer's interest. But time is running short," the Italian commissioner told reporters.

The EU's executive branch said this week that it had completed a draft report into the case, which centres on charges that Microsoft has abused its dominant position in the personal computer market.

But officials declined to comment on reports, including in the daily Financial Times, that Monti had ruled against Bill Gates' global software giant.

"We are indeed nearing an end in this case," Monti told the European Parliament Wednesday, adding that Brussels has "investigated this case thoroughly and carefully".

"It should therefore come as no surprise that the commission has reached a draft decision," he said.

"Of course I cannot go any further in informing you or others as the commission has a duty to keep its investigations confidential."

Microsoft could be fined more than 2.5 billion euros (3.1 billion dollars) and have to make substantial changes to how it markets its all-conquering Windows operating system if found guilty of using its dominance to crush rivals.

Microsoft would be likely to appeal a negative decision by Brussels, sparking a lengthy legal battle, during which the commission's ruling would not be implemented.

The commission's draft report will be circulated to competition authorities in EU member states before any final decision to fine Microsoft. The process could take several weeks, according to EU sources.

Microsoft, which has largely settled its anti-trust problems in the United States, is accused in Europe of trying to squelch rival products to its Windows Media Player, such as RealPlayer and Apple QuickTime.

Microsoft has also been accused of trying to squeeze out other firms in the market for "low-end servers" -- computers that provide e-mail and other services to multiple users.

A settlement with the European Commission could involve Microsoft promising to make changes in these areas to encourage greater competition. But officials are staying tight-lipped on how the investigation is concluding.

SPACE.WIRE