Microsoft Must Answer EU 'Bundling' Charges By April 21Microsoft Must Answer EU 'Bundling' Charges By April 21

Software maker needs to demonstrate that Windows-Explorer tie does not harm competition.

Paul McDougall, Editor At Large, information

March 11, 2009

2 Min Read
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The European Union's competition watchdog is insisting that Microsoft respond by April 21 to charges that bundling the Explorer Web browser with Windows is an "abuse" of its dominant position in the computer market.

The new deadline was reported Wednesday by news agency Reuters.

In January, the EU's European Commission charged Microsoft with using monopolistic practices to crush competition in the software industry.

"Microsoft's tying of Internet Explorer to the Windows operating system harms competition between Web browsers, undermines product innovation, and ultimately reduces consumer choice," the European Commission charged.

Perhaps in response, Microsoft last week disclosed that the forthcoming Windows 7 operating system would contain a switch that allows consumers to easily deactivate Explorer in favor of an alternate browser.

The EC claims that Explorer controls 90% of the Web browser market and that its built-in presence on Windows "distorts competition on the merits between competing Web browsers insofar as it provides Internet Explorer with an artificial distribution advantage which other Web browsers are unable to match."

Alternate browsers, such as Mozilla's Firefox and Apple's Safari, have failed to dent Microsoft's share of the browser market despite generally positive user reviews.

"The commission is concerned that the ubiquity of Internet Explorer creates artificial incentives for content providers and software developers to design Web sites or software primarily for Internet Explorer, which ultimately risks undermining competition and innovation in the provision of services to consumers," the EC stated in a document it formally refers to as a Statement of Objections.

The commission said it could impose fines on Microsoft and/or force the company to ship versions of Windows in Europe that do not include Explorer.

Microsoft has said it would study the EC's objections.

Microsoft and European trustbusters have butted heads numerous times previously. Last year, the EC hit the company with a record $1.35 billion antitrust fine, claiming that Microsoft failed to make available to rivals documentation needed to create products that are interoperable with Windows.

The EC ordered Microsoft to make the documentation available under "reasonable terms."

Previously, the EC ordered Microsoft to ship a version of Windows Vista that did not include Windows Media Player. In an indication of the difficulties inherent in trying to regulate competition, European PC users have largely shunned that version of Vista.


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About the Author

Paul McDougall

Editor At Large, information

Paul McDougall is a former editor for information.

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