Although reports of the Xbox 360 scratching discs have been floating around for a while, the story really got legs a couple months ago when a Dutch TV show called Kassa aired a segment claiming to prove that the 360 damages media. Although Microsoft promised to look into the problem, apparently that's not good enough for Meglena Kuneva, the European Commissioner for Consumer Affairs, who has given Redmond exactly one week to detail how it's handled the bad DVD drive situation in the Netherlands, how widespread the problem is in other markets, and how many complaints have been received in those markets. While the Commissioner says the European Commissions doesn't have the "competencies" to force a recall at this time, she does say that she'll be "more than happy to act" if she finds legal grounds to do so. Ouch. Better get it figured out, boys -- the clock's ticking.
Read - Kassa article
Read - Inquirer article
Listen - (Mostly) English interview with Maglena Kuneva [streaming .wma, starts around 2:53]