Desperate to avoid massive antitrust fines and facing falling sales, Microsoft has announced that they are set to include Google Chrome and Mozilla’s Firefox with Windows 7.
Desperate to avoid massive antitrust fines and facing falling sales, Microsoft has announced that they are set to include Google Chrome and Mozilla’s Firefox with Windows 7.
Unfortunately the move will only apply to European buyers of the Microsoft operating system, with analysts tipping that the move will give Firefox and Chrome a big boost.
A Microsoft statement issued on Friday night said it will send a notification over the Internet that will ask all Windows users in Europe who currently have Microsoft’s Internet Explorer as their default browser whether they’d like to install a different one.
According to the Wall Street Journal, Microsoft had earlier argued that a so-called ballot screen, sought by EU regulators, was too onerous. Its reversal will likely settle a fast-moving EU investigation that was on the cusp of resulting in formal monopoly charges and another antitrust fine.
Bloomberg reported “Microsoft is basically capitulating,” said Matt Rosoff, an analyst at Kirkland, Washington-based Directions on Microsoft. “Microsoft was able to absorb fines and be more aggressive with their legal strategy when business was good, but when you’re looking at ongoing fines in a downturn; it makes more sense to settle.”
On Friday Microsoft reported sales for the quarter ended June 30 that fell 17 percent to $13.1 billion, more than $1 billion short of the average estimate in a Bloomberg survey of analysts. The Redmond, Washington-based company, which has been fined US2.39 billion in previous EU antitrust cases, would avoid another penalty if it reaches a settlement.
Web delivery means the notice will be sent to millions of existing PC users running Windows XP and Vista as well as those buying new PCs loaded with Windows 7.
If accepted, “this proposal will fully address the European competition law issues relating to inclusion of Internet Explorer in Windows,” said Brad Smith, Microsoft’s general counsel. “This would mark a big step forward in addressing a decade of legal issues.”
