Source: http://news.bbc.co.uk/1/hi/technology/8118749.stm

While that option will be offered in the US, Microsoft said its efforts to comply with competition regulations meant it could not do so in Europe. European regulators dismissed the claim, saying the move limited choices rather than opening them up. No choiceWindows 7 is due to go on sale on 22 October around the world. Anyone outside Europe buying a new PC between now and then - running Windows Vista Home Premium, Business or Ultimate - will get the chance to upgrade the operating system on it, at no cost, to Windows 7. While Microsoft will not charge for the upgrade, some PC makers may impose a fee to ship disks with Windows 7 on them to customers. The worldwide upgrade option programme is due to begin on 26 June. Microsoft says it's giving European users that full version for the same price that it would normally charge for an upgrade Rory Cellan-Jones BBC's technology correspondent Read Rory's thoughts in full Those who want to upgrade to Windows 7 on a older PC will pay a reduced price for the software. Stand alone versions of Windows 7, that can run on more than one PC, will also be available. Microsoft said these upgrade options will not be available to Europeans. "We will not be able to offer an upgrade product within Europe," said John Curran, Windows business lead at Microsoft UK, adding that only the full version of the software will be available to Europeans. Microsoft will make an upgrade offer to buyers of new PCs but will send them a full version of the software rather than an upgrade version. In Europe, the full version will be priced as if it were an upgrade version. In the UK, the Home Premium edition of Windows 7 will be

Source: http://news.bbc.co.uk/1/hi/technology/8118749.stmI personally think this takes the P***. The EU ruling needs a good look at. In a way, they are saying that a company can't use their own product.

The EU fined Microsoft 899m euros in 2008, 280m euros in July 2006, and 497m euros in March 2004. for anti-competitive behaviour. The EU found Microsoft guilty of freezing out rivals in products such as media players, while unfairly linking its Internet Explorer browser to its Windows operating system at the expense of rival browsers.http://news.bbc.co.uk/1/hi/business/7392949.stmPresumably, Microsoft argues that offering existing Windows users a cut-price version could be regarded as freezing out the rivals offering Linux etc? Also, having been fined so heavily by the EU, why should Microsoft be to keen to offer discounts to the EU?