Microsoft violated European Commission rules by tying Internet Explorer to its market-dominating operating system, the commission said in a preliminary ruling. The EC said that tie shields Microsoft from head-to-head competition with rival Web browsers.
In a Statement of Objections (SoO) delivered to Microsoft last week, the EC said tying Internet Explorer to Windows “harms competition between Web browsers, undermines product innovation, and ultimately reduces consumer choice.” In response, Microsoft said it’s studying the document and remains “committed to conducting our business in full compliance with European law.”
Distorting Competition
The EC’s latest move is a direct response to a complaint by rival browser maker Opera, which alleged it was experiencing ongoing competitive harm from Microsoft’s practices. In particular, Opera complained that Internet Explorer embraces new proprietary technologies that reduce compatibility with open Internet standards, and therefore hinder competition.
The commission noted last week that Internet Explorer is available on 90 percent of the world’s PCs. Citing the evidence it has gathered to date, the EC said tying Internet Explorer with Windows “distorts competition on the merits between competing Web browsers insofar as it provides Internet Explorer with an artificial distribution advantage which other Web browsers are unable to match.”
Microsoft observed that the EC is concerned that the ubiquity of Internet Explorer creates artificial incentives for content providers and software developers to design Web sites or software primarily for Internet Explorer, which ultimately risks undermining competition and innovation.
“According to the EC’s SoO, other browsers are foreclosed from competing because Windows includes Internet Explorer,” Microsoft said. “The SoO states that the remedies put in place by the U.S. courts in 2002 following antitrust proceedings in Washington, D.C., do not make the inclusion of Internet Explorer in Windows lawful under European Union law.”
Imposing a Remedy
The SoO is based on…