EU likes Windows-fix plan

Microsoft appears to be well on the road to a settlement with the European Union that could potentially save the software company another billion-dollar fine.

In a proposal announced Friday, Microsoft offered to include a "ballot screen" in copies of Windows sold in Europe that would give users the option of installing any of a number of Web browsers.

"If this is approved, I think we have a proposal that will work better for PC manufacturers, and will help bring to closure a decade of controversy," Microsoft general counsel Brad Smith said Friday, referring to long-running antitrust disputes, including the tying of Microsoft's Web browser to its Windows operating system.

The European Commission welcomed Microsoft's plan, saying it "recognizes the principle that consumers should be given a free and effective choice of Web browser, and sets out a means — the ballot screen — by which Microsoft believes that can be achieved."

Agreeing to the ballot screen was a reversal for Microsoft, which said in June it intended to ship the upcoming Windows 7 in Europe without any browser at all, including its own Internet Explorer.

The European Union launched an investigation after Opera, a browser developer in Oslo, Norway, filed a complaint in 2007. Opera charged that Microsoft's practice of bundling Internet Explorer with Windows was anti-competitive.

Opera said it was pleased with the ballot-screen proposal.

"This is a happy day for us," said Chief Technology Office Hakon Wium Lie. "This will give users a genuine choice of Web browser."

The proposal still requires approval by the European Commission, the EU's administrative arm. That appears likely to happen before the commission's current term ends Oct. 31. Windows 7 is scheduled to launch internationally Oct. 22.

Under the proposal, Windows 7 would ship with Internet Explorer, both to stores and to computer makers to install on new PCs for sale.

Microsoft would then send a software update to users whose default browser is set to Internet Explorer, providing a menu of other browsers for the user. The ballot screen would feature browsers based on market share, and the market data would come from a third-party research firm approved by the commission.

Microsoft's proposal also includes plans to improve interoperability of Microsoft programs, including Windows, Office, Exchange, SharePoint and Windows Server, with software from rivals.

"It's an important step on a path, hopefully toward final agreement," Smith said. "Obviously until something is approved, nothing is done."

While Microsoft's Internet Explorer still dominates the browser market with a 65.5 percent share, according to a May report from NetApplication, competing browsers developed by Mozilla, Google, Apple and Opera have been eating away at Microsoft's lead. Mozilla's Firefox in particular has made substantial gains.

The EU has not hesitated to levy massive fines against Microsoft for violating its antitrust laws. Last year, regulators fined Microsoft $1.3 billion for failing to comply with a 2004 antitrust order.

Sharon Pian Chan: 206-464-2958 or schan@seattletimes.com