The European Commission has dropped its competition law case
against Microsoft over its browser software and accepted the
company's solution of offering Microsoft Windows users a screen
through which they can choose non-Microsoft browsers.
In January of last year the Commission launched a case which
argued that Microsoft's 'tying' of its Internet Explorer web
browser to its near-universally used Windows operating system was a
breach of EU anti-trust rules.
The case was launched in the aftermath of a European court
ruling which backed a similar previous investigation and ruling by
the Commission.
In September 2007 the EU's Court of First Instance (CFI) backed
a 2004 fine levied on Microsoft which was partly for the bundling
of media player software with Windows.
In January 2008 the Commission used that ruling to act on a
complaint it had received about Microsoft's inclusion of its
Explorer browser in Windows.
"As for the tying of separate software products, in its
Microsoft judgment of 17 September 2007, the Court of First
Instance confirmed the principles that must be respected by
dominant companies," said a Commission statement at the time. "The
Commission's investigation will … focus on allegations that a range
of products have been unlawfully tied to sales of Microsoft's
dominant operating system."
The Commission made a preliminary ruling that Microsoft broke EU
competition rules by tying its browser to its operating system in
January of this year.
Microsoft later offered to create a 'ballot screen' that would
be shown to owners the first time they used a Windows computer that
would offer them the opportunity to set a Microsoft browser or one
from another company as the default web-browsing software.
The Commission has now formally accepted that proposal, which
makes Microsoft's commitments legally binding, it said. It has
informally accepted Microsoft's commitments to improve
interoperability, another issue on which it had launched an
investigation.
"Today is an important day for internet users in Europe," said
EU Competition Commissioner Neelie Kroes. "Today, the Commission
has resolved a serious competition concern in a key market for the
development of the internet, namely the market for web
browsers."
"Now - for the first time in over a decade - internet users in
Europe will have an effective and unbiased choice between
Microsoft’s Internet Explorer and competing web browsers, such as
Mozilla Firefox, Google Chrome, Apple Safari and Opera," she said.
"More than 100 million European computer users stand to benefit
from the Commission's decision today. An even higher number will
benefit over the five year lifetime of the commitments made binding
on Microsoft with today's decision."
From mid-March 2010 Microsoft will show users a ballot screen
that offers a choice of the 12 most popular browsers in the EU,
Kroes said.
"Membership of this list will be determined by usage share in
the European Economic Area. Users will be able to choose to
download as many of the browsers as they like. Or they can stick
with Microsoft's web browser," she said. "In addition, computer
manufacturers and users will be able to turn Microsoft's web
browser off, and set other browsers as the default browser. In
other words – whichever way you look at it, Microsoft will have to
earn clients for its web browser."
The Commission carried out market testing of Microsoft's
proposal and insisted on changes to it before giving their full
approval.
"The new design minimises any risk of bias in favour of
Microsoft's web browser," said Kroes. "First, it will be presented
in a neutralised window (not a full Internet Explorer window).
Secondly, the browsers will be presented in random order."
"Finally – and this is very important – Microsoft will within
six months, and then annually, report to the Commission on its
implementation of the commitments. Subject to certain conditions,
Microsoft is obliged to make adjustments to the implementation of
the choice screen upon the Commission's request," she said.
The other issue being investigated by the Commission was the
interoperability of Windows. The Commission had concerns that
Microsoft was not making it easy enough for other companies to
ensure that their software and hardware worked with the
market-dominating Windows system.
Kroes said that the Commission had informally accepted Microsoft
commitments to allow interoperability between third party products
and Microsoft software.
"While these arrangements remain informal vis-à-vis the
Commission, the package includes warranties that Microsoft will
offer to third parties and these can, in turn, be privately
enforced," she said.
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