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Microsoft-EU row

June 12, 2009

Customers of Microsoft's Windows 7 in the EU will have to install their own Web browsers after the US software giant said regulatory wrangling has prompted it to strip Internet Explorer from its new operating system.

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The Microsoft Windows logo surrounded by the EU stars
Microsoft is still battling the EU in an anti-trust caseImage: DW Fotomontage

"We're committed to making Windows 7 available in Europe at the same time that it launches in the rest of the world, but we also must comply with European competition law as we launch the product," Microsoft deputy general counsel Dave Heiner said in a written release.

"Given the pending legal proceeding, 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."

The US software giant says it still plans to roll out its next-generation operating system worldwide on October 22.

Microsoft is defending itself in the European Union against accusations of unfairly crushing rivals in the Web browser market. The company is set to defend itself at a hearing, which companies are allowed to do under EU antitrust rules.

The European Commission, Europe's top competition watchdog, opened a new front in its epic antitrust battle with Microsoft in January, hitting the company with fresh charges of unfairly squashing competition.

If Microsoft fails to beat back the charges, the Commission could slap the company with huge new fines and order it to change its ways.

"We're committed to launching Windows 7 on time in Europe, so we need to address the legal realities in Europe, including the risk of large fines," Heiner said.

"We believe that this new approach, while not our first choice, is the best path forward given the ongoing legal case in Europe."

For the EU, less choice not more

The European Commission expressed skepticism over the announcement, saying it will decide soon whether it believes the software powerhouse has abused its dominant position in the market and what remedies are needed.

A customer shops for Microsoft Windows
Customers will have to make their own browser choicesImage: AP

"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."

"In terms of potential remedies, if the Commission were to find that Microsoft had committed an abuse, the Commission has suggested that consumers should be offered a choice of browsers, not that Windows should be supplied without a browser at all," the statement added.

But it said Microsoft's approach of offering the program to computer manufacturers "may potentially be more positive."

nda/AFP/Reuters

Editor: Sonia Phalnikar