Citing "informed" EU sources, it said Competition Commissioner Mario Monti had come to the conclusion that the US giant had abused its dominant position in the personal computer market.

Amelia Torries, a spokeswoman for Monti, dismissed the report as "pure and utter speculation."

"As far as any eventual or possible fine, any amounts that could be printed at this stage are pure and utter speculation," she told AFP.

"Nobody yet in this house has discussed any amount for the fine."

Monti warned last Wednesday that while the European Union was not against a settlement with Microsoft, time was running out.

It came after the EU's executive branch said it had finished a draft report into its anti-trust investigation.

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

Focus said Monti's decision was to be announced officially in March. Torres said that although "we are now concluding," no date had been set.

In theory, Microsoft could be fined more than 2.5 billion euros and have to make important changes to how it markets its all-conquering Windows operating system if found guilty of using its dominance to crush rivals.

The company is thought likely to appeal any negative decision by Brussels, thus sparking a lengthy legal process during which the EU ruling would not be implemented.

SPACE.WIRE