EU unconvinced by Microsoft Internet browser offer 

Microsoft's abrupt reversal came shortly before the European Commission is due to rule on antitrust charges brought against Microsoft in January, claiming that the world's largest software company is abusing its dominant position by bundling its Internet Explorer browser with Windows, shielding it from head-to-head competition with rival products.

Until now, Microsoft has claimed that the browser was an integral part of the operating system and should not be pulled out, but it now plans to do so for a European version of Windows 7, due to be rolled out later this year.

"Given the pending legal proceedings, we've decided that instead of including Internet Explorer in Windows 7 in Europe, we will offer it separately and on an easy-to-install basis to both computer manufacturers and users," said Microsoft Deputy General Counsel Dave Heiner in a blog post on the company's website on Thursday.

European regulators, which had suggested Microsoft offer a selection of browsers on its operating system to open up choice for consumers (EurActiv 23/02/09), responded frostily today.

"Microsoft has apparently decided to supply retail consumers with a version of Windows without a web browser at all," the European Commission said in a statement reacting to Microsoft's move. "Rather than more choice, Microsoft seems to have chosen to provide less."

Microsoft had used a similar approach concerning Windows Media Player. After pressure from Brussels, it decided to sell a version of Windows without its Media Player. However, the Commission soon realised that this move helped Microsoft to go around restrictions since it was selling an alternative version of Windows equipped for free with the Media Player, which consumers widely preferred. However, Microsoft is insisting that under no circumstances it will sell a version of Windows tied with Internet Explorer in Europe.

In the meantime, the Commission is still weighing whether Microsoft's bundling of the browser has been abusive, and what sanctions to bring as a result. It is still possible that the EU executive will force Microsoft to include other browsers with its operating system, a move the company has been determined to avoid.

Microsoft's latest row with Brussels could be a boon for competing browser makers such as Google, the Mozilla Foundation and Opera Software, whose complaints spurred the European Commission's case against Microsoft.

Microsoft's Internet Explorer browser is used for about 60% of global Internet traffic, Mozilla's Firefox has about 30% and Opera is at 4%, just ahead of Google and Apple's Safari, according to Web analytics firm StatCounter.

In 2000, a US judge decided that Microsoft had broken the law after it combined its Internet Explorer browser and the Windows operating system. The most serious violations of the law were upheld on appeal, but the company continued to bundle its operating system and browser. 

(EurActiv with Reuters.)