Microsoft had been planning to support Adobe's PDF format in Microsoft Office -- it's already supported by Macs and OpenOffice.org -- but Adobe is now forcing Microsoft to withdraw it, according to The Wall Street Journal (paid sub required). Its source is Brad Smith, Microsoft's general counsel. The story says:
Adobe wants Microsoft to remove the feature and offer it separately for a fee. Microsoft has agreed to remove the feature but is unwilling to charge for it, Mr. Smith said.
"Adobe has threatened antitrust action unless Microsoft agrees to raise its prices, in particular for the software that would allow Microsoft Office users to save a document in the Adobe PDF format," he said.
Since Adobe claims PDF is sort of open, it's not clear why. However, the WSJ says "Adobe declined to clarify its exact objections to Microsoft's use of the specifications."
Microsoft has already developed what is potentially an open standards based cross-platform replacement for PDF in its XPS (XML Paper Specification) format.
Comment: Presumably Adobe realises that stopping Microsoft from supporting PDF will encourage it to develop a superior alternative. Is its long-term strategy to collect a few billions in anti-trust damages instead? Well, some might think it wouldn't be the first company to take that route....
Correction: Error removed. Many thanks to Larry Seltzer for pointing this out in a comment (below).