Earlier Microsoft had fines totalling over $1.28bn
The European Union (EU) threatened to levy fine of $7.4bn on Microsoft for its breach of a 2009 ruling ordering the firm to provide users with a choice of Internet browsers.
European Union antitrust chief Joaquin Almunia said Microsoft has not kept its promises.
"We will have to consider taking the next step in this case," Almunia said.
""The next step is to open a procedure to determine a breach to our settlement. Since Microsoft has admitted it, I hope it will not take long."
Microsoft has over a decade-long battle with the EU and has also paid fines totalling over $1.28bn.
In 2009, the EU has signed an agreement with Microsoft, while in July, Microsoft revealed that it hadn't integrated a browser-choice screen as it faced a technical error and was involved in finding a remedy to fix the problem.
According to EU, if Microsoft was discovered to be guilty of violating agreement signed in 2009, it would have to pay fines up to 10% of its turnover.
EU claims that Microsoft, keen to avoid more regulatory problems, has blamed the latest argument with the EU watchdog on a technical malfunction.
Further, EU is negotiating with search engine giant Google on a probable agreement over suspected antitrust exercises in its Internet-search business.
"For the last three months, we've been in technical talks to find a possible settlement. It will be possible if Google offers remedies to our original concerns," Almunia said.
"I hope we succeed in these talks as the legal road takes much longer and this is a fast moving market."
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