Behind Your Business

European Union antitrust authorities reacted coolly to Microsoft's surprise announcement on Thursday that it will not include Internet Explorer as an integral part of the Windows 7 products it will distribute within the EU beginning later this year.

Microsoft said it had decided to offer unique versions of Windows 7 that do not include the software giant's browser to PC manufacturers and users in Europe. But the European Commission said it has a more appropriate remedy in mind should Microsoft be found guilty of abusing its dominant market position to promote its own browser technology.

"The commission has suggested that consumers should be offered a choice of browser, not that Windows should be supplied without a browser at all," the EC said. "Given that over 95 percent of consumers acquire Windows preinstalled on a PC, it is particularly important to ensure consumer choice through the computer manufacturer channel."

Too Little, Too Late

Microsoft believes its new approach is its best path forward in light of the software giant's ongoing legal dispute with Europe's antitrust authorities.

"We need to make the move in order to deliver Windows 7 in Europe at the same time that the new operating systems begins shipping in the rest of the world," said Microsoft Vice President Dave Heiner. "It will address the 'bundling' claim while providing European consumers with access to the full range of Windows 7 benefits that will be available in the rest of the world."

Heiner also noted that Microsoft's decision means computer OEMs will be able to add any browser they want to the machines shipped into Europe -- including Internet Explorer.

"European consumers who purchase new PCs will be able to access the Internet without any problem," Heiner said. "Consumers will also be able to add any Web browser to their PCs, to...