Microsoft said last night that it had decided to forgo a December hearing with European regulators on allegations it abused the dominant power it holds through its Windows computer operating systems.

At the same time Microsoft announced the surprise request it said it would welcome an opportunity for an amicable settlement with the European Commission.

Commission spokesman Amelia Torres said the request had been received by Microsoft and therefore the hearing set for December 20th-21st would not take place. The hearing would have considered allegations that Microsoft rigged its Windows operating system to the disadvantage of competitors.

"We've asked them to withdraw the request for a hearing," Microsoft associate general counsel Mr John Frank said in a telephone interview, noting that the company had already replied to the Commission's allegations in detailed papers filed earlier this month.