The Wall Street Journal reported today that talks between Adobe and Microsoft over the inclusion of PDF creation in the upcoming release of Office have broken down, and they speculate that Adobe will file an antitrust suit as a result. The issue is that MS was planning to include PDF creation for free, which is obviously a direct hit at Adobe’s Acrobat revenue. If you have been following Microsoft’s XPS (XML Paper Specification) development as we reported here, you won’t be too surprised.

It is too early to know exactly how this will play out, but anyone with applications or workflows that depend on heavy use of both Office and PDF needs to keep this on their radar!

UPDATE: Mary Jo Foley has more info on this.

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