Microsoft and EU 'breakthrough'

The clash between Microsoft and the EU dates back to 2004

Microsoft and the European Union have reached a breakthrough in their talks over millions of dollars in fines, a lawyer for the software firm has said.

Microsoft is facing fines of up to 2m euros ($2.4m; £1.4m) a day if it is found to have delayed its compliance with a 2004 EU anti-competition ruling.

EU regulators and Microsoft have spent the past two days locked in talks.

The company argues that it has complied with EU demands that it reveals parts of its programming code to rivals.

'Positive and constructive'

Under the European Commission's 2004 ruling, Microsoft was told to provide rival firms with more information so that they could write programs that work more smoothly on Microsoft's Windows operating system.

The EU has accused the firm of dragging its feet.

Microsoft's top lawyer, Brad Smith, said on Friday that the company now had a clear understanding of what it was required to do.

"I regard this as the single most positive and constructive step that has been taken in this matter since December," Mr Smith said.

As part of the 2004 ruling, Microsoft also was hit with a record fine of 497m euros and told to debundle its Windows Media Player so that consumers could choose whether or not they wanted to use it.