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Internet Explorer Favouritism Could Cost Microsoft $7 Billion

An investigation into Microsoft’s Internet Explorer has been opened by antitrust regulators to determine if the company has been offering consumers a choice in browser.

The European Union probe follows one undertaken in 2009 and will identify if Microsoft has adhered to the guidelines initially set out.

EU Competition Commissioner, Joaquin Almunia, suspects Microsoft has already violated one of its commitments by not outfitting Windows with a dedicated pop up that offers a choice in browsers, apart from their home-brewed Internet Explorer browser.

Microsoft initially adhered to the 2009 guidelines, but Almunia claims the screen has been omitted for over a year (February of 2011), affecting approximately 28 million customers.

In an official statement, Microsoft admitted a “technical error” in its first service pack for Windows 7 omitted the browser choice screen. Currently a fix is being tested before being rolled out to affected customers.

If the European Union finds Microsoft failed to uphold its legal obligations, the company could incur a fine totalling 10 per cent of annual revenues. According to Electronista, Microsoft’s revenues were in excess of $70 billion, potentially costing them $7 billion.

 

During proceedings in 2009, the European Union found Microsoft had violated antitrust laws by bundling Windows with internet explorer, thereby giving the ubiquitous operating system an unfair advantage over its rivals. It was deduced these browsers, which include Google’s Chrome, Mozilla’s Firefox and Opera, would have a better shot at competing if customers were forced to nominate the browser of their choice.

Almunia has pledged “if infringements are confirmed, there will be sanctions.”

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