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REDMOND – Jan. 16, 2009 – “Yesterday Microsoft received a Statement of Objections from the Directorate General for Competition of the European Commission. The Statement of Objections expresses the Commission’s preliminary view that the inclusion of Internet Explorer in Windows since 1996 has violated European competition law. According to the Statement of Objections, other browsers are foreclosed from competing because Windows includes Internet Explorer.

The Statement of Objections states that the remedies put in place by the U.S. courts in 2002 following antitrust proceedings in Washington, D.C. do not make the inclusion of Internet Explorer in Windows lawful under European Union law.

As regards interoperability, in its Microsoft judgment of 17 September 2007, the Court of First Instance confirmed the principles that must be respected by dominant companies as regards interoperability disclosures. In the complaint by ECIS, Microsoft is alleged to have illegally refused to disclose interoperability information across a broad range of products, including information related to its Office suite, a number of its server products, and also in relation to the so called .NET Framework. The Commission's examination will therefore focus on all these areas, including the question whether Microsoft's new file format Office Open XML, as implemented in Office, is sufficiently interoperable with competitors' products. As for the tying of separate software products, in its Microsoft judgment of 17 September 2007, the Court of First Instance confirmed the principles that must be respected by dominant companies. In a complaint by Opera, a competing browser vendor, Microsoft is alleged to have engaged in illegal tying of its Internet Explorer product to its dominant Windows operating system. The complaint alleges that there is ongoing competitive harm from Microsoft's practices, in particular in view of new proprietary technologies that Microsoft has allegedly introduced in its browser that would reduce compatibility with open internet standards, and therefore hinder competition. In addition, allegations of tying of other separate software products by Microsoft, including desktop search and Windows Live have been brought to the Commission's attention. The Commission's investigation will therefore focus on allegations that a range of products have been unlawfully tied to sales of Microsoft's dominant operating system.

In March, Microsoft announced that their upcoming Internet Explorer 8 would: "use its most standards compliant mode, IE8 Standards, as the default." Note the last word: default. Microsoft argued that, in light of their newly published interoperability principles, it was the right thing to do. This declaration heralded an about-face and was widely praised by the web standards community; people were stunned and delighted by Microsoft's promise. This week, the promise was broken. It lasted less than six months. Now that Internet Explorer IE8 beta 2 is released, we know that many, if not most, pages viewed in IE8 will not be shown in standards mode by default.

How many pages are affected by this change? Here's the back of my envelope: The PC market can be split into two segments — the enterprise market and the home market. The enterprise market accounts for around 60 per cent of all PCs sold, while the home market accounts for the remaining 40 per cent. Within enterprises, intranets are used for all sorts of things and account for, perhaps, 80 per cent of all page views. Thus, intranets account for about half of all page views on PCs!

BRUSSELS (AP) — The European Union said Friday that Microsoft’s practice of selling the Internet Explorer browser together with its Windows operating system violated the union’s antitrust rules. It ordered the software giant to untie the browser from its operating system in the 27-nation union, enabling makers of rival browsers to compete fairly.

Google's goal? To set up a cloud-based set of Windows file-compatible applications that will work hand-in-glove with Google Linux-powered desktops. Google already has the applications: Google Docs, GMail, Google Calendar, etc. etc. Now, just add an operating system where they, and not the boys from Redmond, call the shots, and they're in business.