Microsoft Settles With EU
On the same day one technology giant finds itself facing new antitrust troubles, another one found itself close to escaping the grip of its decade-long antitrust problems in Europe. The European Commission said Wednesday that it is dropping its antitrust charges against Microsoft Corp. after the software giant agreed to provide users of its Windows operating system with several choices for Web browsers. The European Union's move comes on the same day that the FTC announced it was suing Intel Corp., for anticompetitive behavior (See related story).
The commission said in a news release that Microsoft's "legally binding commitments" to boost competition in the Web browser market addresses its concerns that the firm tied its Web browser, Internet Explorer, to Windows in violation of EU rules barring firms from abusing its dominant position in a market. The commission, the EU's regulatory arm, charged Microsoft in January with abusing its dominant position by tying its browser to its operating system.
"Millions of European consumers will benefit from this decision by having a free choice about which Web browser they use," European Competition Commissioner Neelie Kroes said in a statement. "Such choice will not only serve to improve people's experience of the Internet now but also act as an incentive for Web browser companies to innovate and offer people better browsers in the future."
In particular, Microsoft has agreed, for five years, to provide users in EU countries with a "choice screen" enabling users of Windows XP, Windows Vista, or Windows 7 the choice of installing a Web browser from several options including Internet Explorer. In addition, Microsoft also will allow computer manufacturers to install a competing Web browser as the default browser on computers they sell. If the firm fails to abide by its commitments, the EU can impose a fine of up to 10 percent of Microsoft's annual total turnover, the commission said.
"We are pleased with today's decision by the European Commission, which approves a final resolution of several longstanding competition law issues in Europe," Microsoft General Counsel Brad Smith said in a statement. "We look forward to building on the dialogue and trust that has been established between Microsoft and the commission and to extending our industry leadership on interoperability."
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Antitrust
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