ZDnet reports that Microsoft chief executive Steve Ballmer has said a complaint lodged by Google was "baseless", as the software company was complying with a 2002 antitrust settlement.
In December Google filed a complaint with the US Department of Justice stating that Microsoft’s new OS Windows Vista does not allow third party desktop search applications to be installed.
Google argues that this feature violates a consent decree that monitors Microsoft's behaviour as part of its settlement with the US government, which had accused the company of using its monopoly to harm competition by incorporating new features into its operating system at no additional costs.
"We continue to comply with the consent decree we signed with the US government in recognition to the findings around our position with Windows," Ballmer stated.
"We think all claims to the contrary are baseless.”