A new development has emerged in the battle between Microsoft and the European Commission after the software giant accused it of setting up inappropriate contacts between its key rivals and an independent observer, according to reports.

Microsoft said the commission had collaborated with its rivals and an independent trustee that was inconsistent with the commission's role as a neutral regulator and the trustee's role as an independent monitor, reported The Times.

The commission has spent the last three months stating that Microsoft has not complied with an order to allow competitor servers to work properly with Microsoft-produced operating system Windows.