COMPETITION/IT : MICROSOFT MAY HAVE TO REMOVE EXPLORER FROM WINDOWS.

Yesterday Media Player, today Internet Explorer? Will Microsoft be forced to separate its web browser from its Windows operating system after having been ordered to do so for its media player? Is it risking another record fine? That may be jumping the gun, but not by a lot. It has escaped no one's notice that the European Commission has launched another anti-trust procedure - among many - against the American IT giant. The group, still accused of abusing its dominant position in Europe via Windows - found in 90% of personal computers worldwide - is alleged in this case to have violated EU competition rules by automatically incorporating Internet Explorer in Windows since 1996.

The Commission did not take long to respond to the complaint lodged late in 2007 by the Norwegian manufacturer Opera Software. This competitor aims to win market shares for its own browser (named Opera) and urged the Commission to impose an untying of Internet Explorer and Windows or to allow the pre-installation of competing browsers.

In its statement of objections, announced on 16 January, the Commission states that the tied sale of 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". This practice "enables Microsoft to shield Internet Explorer from head to head competition with other browsers, which is detrimental to the pace of product innovation and to the quality of products" consumers obtain.

The statement of objections is the first step in the anti-trust process. The Commission still has to confirm its analysis after receiving a response from Microsoft, which has eight weeks to reply. The group may also apply for an oral hearing. Any remedy would come only afterwards and could take the form of the separate sale of Internet Explorer, another measure or a fine, which would likely be heavy, since Microsoft is a repeat offender.

For now, Microsoft is considering how to react and says it is "determined" to do business "in full compliance with European law".

Opera's market share, meanwhile, has remained stable (see table).

NEXT STEP?

The scenario in this case is comparable to that of Media Player. In March 2004, the Commission ordered the Redmond-based firm to sell a version of Windows without its multimedia software. This runs counter to the group's all-in strategy...