Reuters is reporting that Microsoft is taking steps to curve concerns the European Commission has with the Windows operating system. The EC alleges that Windows intentionally runs its own server software faster than a competitor's application, e.g. Oracle (Microsoft Makes Changes to Address EU Concerns).
Microsoft also allegedly kept some information secret from the commission, violating European Union Law, all in the name of keeping an edge on their competitors. As a result of their decision, Microsoft will open up some of their proprietary software code to rivals in order to make them more competitive.
LawMeme has covered the Microsoft and EU issues.
Update: MSNBC has begun to carry the story as well (Microsoft compromising with EU).