The European Commission, which took action against Microsoft for abusing a dominant market position, would decide in two weeks' time on what to do, the report said.

It had powers enabling it to apply a fine of up to 5.0 percent of average daily sales throughout the world, equivalent to about 5.0 million dollars, the newspaper calculated.

The report quoted EU competition spokesman Jonathan Todd as saying: "We remain confident that they will take the necessary steps."

On Friday an EU source had told AFP that Microsoft had about two weeks to respond to the commission.

In March 2004 the commission imposed a record fine of 497 million euros on Microsoft, a fine paid in December, but on Thursday the commission accused the company of not applying some other measures against it.

One of these decisions was that Micosoft market a version of its leading software Windows without video software Media Player. Another required the company to divulge information about its product operating system needed by manufacturers of competing products.

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