BEIJING, Oct. 8-- The European Union has requested information from security software maker Symantec to determine whether Microsoftˇs recently announced security products may violate any antitrust regulations, analysts said Friday.

Symantec, the maker of the popular Norton antivirus software, said Friday it has responded to the E.U.ˇs request for information but denied that the company had lodged a formal complaint with the E.U. The discussions with the E.U. were in response to its queries, said Symantec spokesperson Genevieve Haldeman.

¨As weˇve said in the past, we will compete with Microsoft in the markets, not in the courts, as long as there is a level playing field,〃 she said.

This is not the first time Microsoftˇs actions have raised eyebrows among E.U. officials. Last year, Microsoft incurred the E.U.ˇs wrath after bundling its Windows media player with the companyˇs operating systems, which the E.U. said stifled competition. Microsoft was fined$613 million, the highest ever in any European competition case. Earlier this week, the E.U. administrative body the European Commission went so far as to appoint a Microsoft watchdog(see Microsoftˇs European Watchdog).

Security has become important to Microsoft because its products have long been criticized for being susceptible to worms, viruses, spyware, and other security-related threats.

On Thursday, Microsoft said later this year it would make a test version of the Microsoft Client Protection solution, which protects enterprises from malware threats(see Microsoftˇs Security Alliance).

Microsoft revealed details of the Microsoft Antigen product, an antivirus and anti-spam solution for messaging and collaboration servers. Microsoft Antigen, based on the technology the company recently acquired from Sybari Software, will be available to customers in the first half of 2006.

Microsoft has also sought to create a SecureIT Alliance group to partner with companies like Symantec, VeriSign, and TrendMicro to build and integrate their products for the Microsoft platform. But at the same time, the company has been building its own security products that could challenge its partners.

Changing Playing Field

What could change the playing field is the Redmond giantˇs plans to introduce antivirus and anti-spyware products under its label Windows OneCare, a consumer product that is expected early next year. This would be a departure as Microsoft in the past has partnered with companies like Symantec whose antivirus software comes pre-installed on PCs that are being shipped with the Windows operating system.

The introduction of Windows OneCare could challenge this partnership and potentially affect Symantecˇs ability to distribute its products to consumers.

Microsoft declined to provide a spokesperson for comment. But in a statement emailed by Microsoft spokesperson Shelby Koontz, the company said that it values its relationship with Symantec and will work openly with them on security-related issues.

¨Weˇre focused on delivering solutions today to help protect our customers, as well as working with our partners to better protect the ecosystem and foster healthy marketplace competition,〃 Microsoft said in the statement.

The company also said that it has kept the E.C.¨very closely〃 informed of its plans for new technology development and will respond¨quickly and comprehensively to any request for information.〃

Walking a Thin Line

Analysts said that Microsoft will have to find a way to walk the thin line between creating its own line of products to boost the level of protection it offers customers while not crossing over into the territory of partners like Symantec.

¨Microsoft wants consumers to be protected from the start so there should be some mechanism to provide this while maintaining a level playing field,〃 said Goldman Sachs analyst Rich Sherlund in a report issued Thursday.¨How this is accomplished in[Microsoftˇs new version of Windows] Vista may be an issue for regulators to look at.〃

Microsoft is unlikely to run foul of U.S. antitrust laws since they permit companies to integrate additional features into their products as long as it is not done with the intention of becoming a monopoly.

However, the E.U.'s rules"are much more focused on protecting competitors, with less regard to the offsetting benefit to consumers,"said Mr. Sherlund in his note.

(Source: CRIENGLISH/redherring.com)