A Microsoft spokesperson has defended Palladium by claiming that work on the security plan is still in its infancy. The spokesperson went on to claim that the hardware specification for Palladium chips would be fully disclosed so other software manufacturers could use it. Microsoft’s Palladium security plan will be designed to thwart virus writers and hackers by creating a secure repository for data stored within PC’s. Palladium will use encryption software and custom made chips.

The EU is already investigating Microsoft and has yet to decide whether or not it has illegally changed commonly used industry standards in order to be deliberately anti competitive.