European anti-trust authorities say new proposals from Microsoft will help restore competition to the internet browser market.
Microsoft has made 20 changes to proposals made in July to give Windows users a choice of browser in response to feedback from competitors and EU competition authorities.
The updated proposals form part of Microsoft's latest attempt to resolve the EU's complaint that bundling its Internet Explorer browser with is Windows operating system abuses that monopoly.
Neelie Kroes, the EU competition commissioner, said at first sight the Microsoft proposals appear to address the commission's concerns, according to the Financial Times.
"Hopefully, we can take a decision before the end of the year," Neelie Kroes said.
The EU competition commission has also expressed support for technical changes Microsoft has proposed to make Windows work better with third party products.
The EU investigation is supported by a group of technology companies including IBM, Sun, Oracle and Nokia.
The European Committee for Interoperable Systems (ECIS) group joined Google and the Mozilla Foundation as complainants in the case in April.
The EU investigation followed a complaint lodged against Microsoft by Norwegian browser developer and ECIS member, Opera Software, that other browsers cannot compete with IE because of its bundling with Windows.