On Tuesday, the European Commission warned Microsoft that Windows Vista's built-in security features aren't following the rules. They are hurting third party vendors. The EU announced their reply after Microsoft declared that blocking off security features would delay Vista's launch in Europe. Microsoft wants to follow the law, but at the same time, they don't want to strip any security features from European versions.
The EU understands Microsoft's position but declares that the company is too close to being a monopoly and should comply with European antitrust laws. According to the EU, security software depends on diversity and innovation, which is at risk if Microsoft has their way. Microsoft believes that European consumers have the right to the same security features from Vista as everyone else.