Microsoft said these upgrade options will not be available to Europeans.
"We will not be able to offer an upgrade product within Europe," said John Curran, Windows business lead at Microsoft UK, adding that only the full version of the software will be available to Europeans.
Microsoft will make an upgrade offer to buyers of new PCs but will send them a full version of the software rather than an upgrade version.
In Europe, the full version will be priced as if it were an upgrade version.
In the UK, the Home Premium edition of Windows 7 will be £79.99. Ordinarily, an upgrade version would only be available to those with an existing Windows licence. However, as all European versions are full versions this distinction will not apply.
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A Commission spokesman dismissed Microsoft's claim that it was taking the action to comply with European laws.