REGULATION - Europe does antitrust its way - The EU's tough stance in the Microsoft case underscores a policy difference with the U.S.

After a Luxembourg court upheld an antitrust ruling and a record $689-million fine against Microsoft Corp., the top U.S. antitrust enforcer complained that the ruling had done little to help consumers -- and may even hurt them. EU officials fired back, calling the criticism "totally unacceptable" and defending themselves against accusations that the case represented European protectionism.

The conflict is more than symbolic. Some antitrust experts say Europe's tougher approach, designed to help consumers by strengthening companies that compete against dominant firms, could backfire, leading to higher prices and discouraging companies from developing innovative products.

Europe's expanding role as the de facto global antitrust watchdog is making some U.S. companies and lawmakers nervous, especially now that the EU is the world's largest economy.

"They're asking more questions, they're looking under more rocks, they're willing to be more proactive," Dennis Oswell, a partner in a Brussels-based law firm, said of European regulators. "The U.S. is clearly in a phase where they're quite comfortable with the status quo."

Companies such as Apple Inc., Intel Corp. and Qualcomm Inc., whose market dominance also has attracted the attention of Brussels regulators, must work harder now to ensure they don't run afoul of the stricter standards, which could lead to lengthy legal battles and potentially eye-popping fines.

The Bush administration's forgiving interpretation of U.S. antitrust laws is making the contrast even sharper.

To see how differently the United States and European Union approach antitrust cases, you need only look at who's in charge.

The officials who enforce U.S. antitrust laws are largely anonymous. The job is split between Thomas O. Barnett, an assistant attorney general at the Justice Department, and Jeffrey Schmidt, a bureau chief at the Federal Trade Commission.

In contrast, European antitrust law is enforced by Neelie Kroes, a high-profile member of the EU president's Cabinet. The position is roughly as prominent there as the secretary of State is in the United States.

Kroes drew even more attention last week as she stood before TV cameras in Brussels and defended the court ruling against Redmond, Wash.-based Microsoft.