The offer that was made by Microsoft in July on

the steps it would take to remedy the browser issue are not that substantially different but

the few changes that it had focused on concerned the interface of the browser selection

screen. The catalogue of browsers that the EU lists is a long one that includes Apple

Safari, Google Chrome, Microsoft IE, Mozilla Firefox, Opera, AOL, Maxthon, KMeleon,

Flock, AVant Browser, Sleipinir, and Slim Browser.

This was a very significant decision taken by the EU Commission marking an end to all

current antitrust charges brought by the EU regulators, which marks a period of

investigations that has been going on for a total of ten years. As Neelie Kroes, the EU

Commissioner for Competition, stated in a press release, “the deal resolves a serious

competition concern” in a crucial market which directly affects the development of the

internet. The news came at a relief from the Microsoft camp as it has been fined €1.7

billion over the entirety of the investigation period.

The technical details of the settlement were released by the EU in a series of documents.

Firstly, they reveal that the OEMs will have the option of completely uninstalling Internet

Explorer and replacing it with a browser of their choice. Secondly, consumers can also

choose their browser when they activate their machines. Going beyond this in a more

significant way, a software package of the browser selection screen will be sent to user’s

that have set IE as their default browser. This update will be available for five (5) years

and sent every six (6) months to these users. Nevertheless, another commitment that was

taken upon by Microsoft was on interoperability of its windows product with competing

products. Their commitment is based on improving this compatibility of third party

products and their Windows products.

The reactions were quite positive and pleasant regarding the settlement. Opera’s CEO

elated that “the decision is also a celebration of open web standards, as these shared

guidelines are the necessary ingredients for innovation on the Web.” Other giants, such

as Google, shared a similar sentiment by opining that more competition among browsers

would boost innovation and promote a shift to “cloud computing.”1 Additionally, other

prominent individuals working on the case voiced a similar reaction. They believed that

by creating a level playing field for browser competition, web browser competition

would be enhanced but also, on a general worldwide scale, it will change the course of

the internet into an interaction computing platform.

The news also reached across the Atlantic where the Department of Justice issued a

statement on the settlement. The Attorney General acclaimed both Microsoft and the

European Union for their efforts to find a practical and competitive solution and vowing

to continue their “cooperative relationship.”

Although there has been much praise coming from both sides, some skepticism exists

toward the actual affect that the remedy will have on the browser market. Despite the

settlement, the aspiration of opening the market to competition and create a level playing

field, some analysts believe that Microsoft’s significant market share will not diminish.

The fear is that the technically savvy already know about the other browsers and their

right to choose which one they want to really want to use, while the others have little

reason and knowledge to question whether IE is really their best choice. As one analysts

firm boldly stated, “We don’t expect a movement shift in browser market share.” To put

it in perspective, Microsoft’s IE owns about 56% of the browser market, with its closest

1 Internet- ("cloud-") based development and use of computer technology.

rival being Mozilla’s Firefox on about 32%, and the next being Google’s Chrome with

about 3%.

Although the above figures show a market where other companies will have a difficult

time competing against IE, it is definitely still too early to determine what impact this

settlement will have on the browser market. Of course, at this moment, Microsoft has

built up a brand name for itself over many years of having the “exclusive” internet

browser IE, perhaps through misusing their dominant position. Nevertheless, the less

technical savvy may perhaps recognize this brand as it is psychologically imprinted in the

consumer’s mind. However, as the information society is rapidly developing and

technical laymen are becoming more and more a part of this wave, their consumer

knowledge becomes expanded allowing them to be a more responsible and aware

consumer. Being a “techy” has always been identified in the generational gap, but this

handicap gap has closed at an unprecedented rate. Although it is agreeable that

Microsoft’s market share will be dented overnight, over time, and as the less informed

consumers become more enlightened, a greater erosion of Microsoft’s share will be

noticeable and a greater competitive balance will be achieved, all due to settlement

decision and the other competition steps that the European Commission has taken

with/against Microsoft. As the Commissioner, Neelie Kroes put it, “Millions of

Europeans will benefit from this decision by having true choice about which web browser

they use. Such choice will not only serve to improve people’s experience of the internet,

but also act as an incentive for web browser companies to innovate and offer people

better browsers in the future.”

Right now, though, the bottom line is that Microsoft will sleep more peacefully on

Christmas Eve, not worrying whether Santa Clause would actually visit their house and

have brought them this long wished present, thanks to the efforts and decisiveness(and of

course a little phone call to the North Pole) of the European Commission.

Source:PAPPAS & ASSOCIATES, ATTORNEYS AT LAW, 49-51, Rue Stévin, B-1000 Brussels, Belgium

www.pappaslaw.net, email: info@pappaslaw.net, tel.: 32-2-23 15 704-5