Will Vista release be delayed by Microsoft's battle with EU?

Vista's release could be delayed if things don't go well in court next week for Microsoft as it appeals the European Union's antitrust ruling.  In fact, European Competition Commissioner Neelie Kroes already let Steve Ballmer know that the commission has concerns about the new operating system.  

EU commissioners are concerned that Vista may package Internet search functions or software to create fixed documents that pose a threat to Google or Adobe, which provide similar products.  If Microsoft fails next week, it could face more lawsuits, analysts fear.  Some analysts believe more government agencies may file suit as well, if the EU is successful.

One analyst at Jupiter Research, Joe Wilcox, is taking an optimistic position, according to Reuters.  He thinks Microsoft will settle with the EU to smooth the release of Vista in Europe.  If Microsoft does, that will certainly reduce the chances of additional lawsuits.  Vista is scheduled for release in January 2007.

As it stands now there is no sign of a settlement.  Microsoft will face a European appeals court next Monday to reverse the EU's 2004 antitrust finding.  In 2001 a U.S. court found that Microsoft violated antitrust laws, but that case was settled.  Microsoft also is appealing similar charges in South Korea and facing some trouble with regulators in Japan.