Microsoft Settles EU Investigation, Must Offer IE Alternative

The European Union on Wednesday settled its browser bundling investigation of Microsoft, accepting the software giant’s promise to provide current and new Windows users with a more obvious chance to pick an alternative to Internet Explorer. For the next five years, Windows XP, Windows Vista and Windows 7 users in 30 European countries will be […]

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600px-web_browser_usage_sharesvgThe European Union on Wednesday settled its browser bundling investigation of Microsoft, accepting the software giant's promise to provide current and new Windows users with a more obvious chance to pick an alternative to Internet Explorer.

For the next five years, Windows XP, Windows Vista and Windows 7 users in 30 European countries will be shown a "browser choice" screen through Windows update, giving them the opportunity to download an alternative browser. Those purchasing a new Microsoft-powered computer from third-party manufacturers will see a similiar screen.

Additionally, Microsoft agreed to commit to "ensure that developers throughout the industry, including in the open source community, will have access to technical documentation to assist them in building products that work well with Microsoft products."

If Microsoft fails to live up to its promises, the EC can fine Microsoft up to 10 percent of its revenue, which totaled $60 billion in 2008.

The agreement settles a long-running investigation that grew out of the European Commission 's 2003 and 2004 antitrust investigation that found that Microsoft abused its dominance in operating systems by tying Windows Media Player to its OS.

That action followed the Justice Department's spectacular Clinton-era attempt to bust Microsoft's monopoly into separate companies.

Over the last decade, the commission has levied fines of about $2.5 billion on Microsoft for antitrust violations and not adhering to its promises. The company still provides operating systems for some 90 percent of personal computers.

In January 2009, the European Commission filed official objections to tying IE closely to Windows, arguing it gave Microsoft an unfair marketing and distribution advantage over rival browsers.

And rival browsers now exist. Browser technology stagnated for years after Microsoft vanquished Netscape in the 1990s browser war. IE commanded about 95 percent of the market, stranding users with a browsers that were buggy, slow and shot through with security flaws.

That changed when Firefox rose from the ashes of Netscape, pushing innovations like tabbed browsing to a wide audience.

Firefox, developed by the nonprofit foundation Mozilla, now claims about 25 percent of the marketplace worldwide, followed by Google's Chrome, Apple's Safari, Opera and Camino. IE, including the web-developer–dreaded IE 6, still has about 65 percent of the market.

Microsoft's stock rose slightly after Tuesday's announcement.

*Chart courtesy *Wikipedia

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