Microsoft has agreed to make changes to Windows Vista to satisfy regulators in the European Union. Despite the changes, it will still deliver Vista on schedule, official said today.

The company had earlier warned that Vista might be delayed in Europe because of regulatory authorities' concerns about the impact of the operating system on competition, but following what it described as "constructive dialogue" with competition authorities, the company expect to release the software on schedule.

A European court is still considering Microsoft's appeal of an antitrust ruling two-and-a-half years ago which found the company guilty of unfairly using its monopoly in desktop operating systems to strengthen its position in the markets for workgroup server and media player software.

The European Commission (EC) had expressed further concerns that Microsoft would use the launch of Vista to give it an unfair advantage in the security software market. But Microsoft has revealed that it’s agreed to make a number of changes to Windows Vista in response to EC guidance.

It has also negotiated successfully with competition authorities in Korea, which have also raised concerns about Microsoft's business practices, and expects to ship Vista on time in that country as well, it said.

Microsoft plans to release the operating system to its volume license business customers worldwide in November, and to other customers worldwide in January.

"We are excited to bring the security enhancements and innovative new features of Windows Vista to our customers and partners around the world, and we are committed to adhering to local law in every region," said Steve Ballmer, Microsoft chief executive officer.