EU says Microsoft has offered concessions to settle Internet Explorer antitrust action

By Aoife White, AP
Friday, July 24, 2009

EU: Microsoft trying to settle browser case

BRUSSELS — Microsoft Corp. will offer computer users a choice of Web browsers to ward off new European Union antitrust fines, EU regulators said Friday.

The European Commission has charged the company with monopoly abuse for tying the Internet Explorer browser to the Windows operating system installed on most of the world’s desktop computers.

It said Microsoft is suggesting that consumers pick a browser from several offered on a ballot screen in its new software release, Windows 7, which will go on sale Oct. 22.

Windows would still include Internet Explorer, but users would be able to disable it. Computer manufacturers could also choose to install other browsers, set them as default and disable Internet Explorer.

Regulators did not say if this was enough to settle antitrust action and allow the company to avoid new fines on top of the €1.7 million that Microsoft already has paid in a series of battles with the EU executive.

“The Commission welcomes this proposal and will now investigate its practical effectiveness in terms of ensuring genuine consumer choice,” they said.

EU officials have warned that their case targets a possible violation of antitrust rules since 1996. Microsoft’s proposal affects only its latest browser.

Microsoft spokesman Jesse Verstraete had no immediate comment, but he said the company would issue a statement shortly.

The company’s proposal is close to what regulators called for in January when they asked Microsoft to offer several browsers on Windows.

The ballot screen option is also backed by Norwegian mobile Internet browser maker Opera Software ASA, which triggered the EU antitrust case by complaining that Microsoft was unfairly using its power as the dominant supplier of operating system software to squeeze out rivals.

Microsoft earlier suggested stripping Internet Explorer out of Windows to sell it without any Web browsers at all in Europe. The EU rejected this as giving no choice to the 5 percent of consumers who buy Windows software in a stand-alone pack.

Most people buy Windows already installed on a computer assembled by manufacturers such as Dell or HP.

The EU also said Microsoft has offered to share more information to software developers who want to make products compatible with Windows and Windows servers. It said these proposals “require further investigation” before officials could decide on next steps.

Microsoft’s proposals will be published on its Web site.

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