EU Browser Case Moves Forward

European antitrust authorities have filed a statement reflecting their view that Microsoft’s practice of bundling Internet Explorer (IE) with Windows is an abuse of its dominant position in OSs. The statement of objections is the next step forward in the European Union’s latest investigation of the company, which began in Jan. 2008, and it could be a prelude to new sanctions against the company, including fines and requirements to ship Windows without IE or with other browsers preinstalled.

Unfair Distribution Advantage

The investigation into IE by the European Commission (EC), which handles antitrust and fair-competition enforcement for the European Union (EU), was spurred by complaints from Norwegian Web browser maker Opera. Opera alleged that Microsoft’s practice of bundling IE with Windows had stifled competition in the browser market and that IE’s subsequent dominance had hampered the adoption of browser-neutral design standards by Web sites. Microsoft has consistently claimed that IE is not a bundled application but rather a key component of the OS that cannot be removed without degrading overall functionality of the OS.