The European Commission ("Commission") has welcomed the implementation of Microsoft's commitment to give PC manufacturers and users in the European Economic Area, covering 30 nations, the option to choose their web browser.
Starting from 1 March 2010, users of Windows XP, Windows Vista and Windows 7 whose default browser is Internet Explorer will be offered a choice of different web browsers, which may be installed on their PC in addition to or instead of Internet Explorer, by means of a 'choice screen'. The 'choice screen', which contains details of the twelve most popular browsers that run on Windows, has also been made available on the internet. Moreover, PC manufacturers will also be free to pre-install a browser or browsers of their choice and will no longer be contractually obliged to install Internet Explorer. It is expected that the 'choice screen' will be displayed on over 100 million PCs in Europe between now and mid-May.
The Commission adopted these commitments - as proposed by Microsoft - in December 2009 to end its dominance investigation ( see issue 452 of Community Week). (http://tinyurl.com/y85ulw2) The offer of commitments (pursuant to Article 9 of Regulation 1/2003) followed the issue of a statement of objections by the Commission in January 2009 alleging that Microsoft had illegally tied Internet Explorer to Windows in breach of Article 102 TFEU.
The Commission is satisfied that giving customers the option to choose between different browsers will provide competitors with an effective opportunity to compete on the merits with Internet Explorer and will enhance competition in the market for web browsers -allowing consumers to benefit from technical developments and innovation on the web browser market.
The commitments are for a term of five years although they may be reviewed on request by the Commission after two years. In addition, Microsoft will also provide regular reports to the Commission, the first in six months time, on the implementation of the commitments including quantitative usage statistics. Microsoft has also agreed to modify the choice screen at the Commission's request if considered necessary.
If Microsoft breaches the commitments, the Commission could impose a fine of up to 10% of Microsoft's total annual turnover without having to prove an infringement of Article 102 TFEU.
Opting to use the Article 9 procedure has allowed the Commission to reach a relatively quick outcome and to focus on designing and implementing the remedy (which has been fully market tested) - rather than pursuing an infringement decision which may well have been appealed.
There have been calls for competition authorities in other parts of the world to adopt a similar approach to the Commission in order to give their consumers the benefit of unbiased web browser choice.
To view Community Week, Issue 461 – March 2010 in full, click here. (http://tinyurl.com/yesjtmz)
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