Microsoft accused over web browser figures

Microsoft accused over web browser figures
By Nikki Tait in Brussels
Copyright The Financial Times Limited 2009
Published: June 5 2009 21:35 | Last updated: June 5 2009 21:35
http://www.ft.com/cms/s/0/4286d3f6-5203-11de-b986-00144feabdc0.html


Microsoft has “substantially understated” its share of the browser market in its effort to combat charges by Europe’s antitrust watchdog that it illegally ties its Explorer browser to its Windows operating system, opponents of the US software company are alleging.

ECIS, a technology industry group led by IBM, Nokia and Oracle, said on Friday it had filed a formal response to Microsoft’s defence arguments with the European Commission.

European Union competition commissioner Neelie Kroes is considering the software company’s defence submission, after accusing it this year of illegally bundling Explorer with Windows and harming competition.

In its filing, ECIS takes issue with Microsoft’s claim that its share of the browser market in the European economic area has been falling sharply, and is now under 55 per cent, compared with 85 per cent four years ago.

Microsoft contends that competing browsers – notably Mozilla Firefox – have picked up significant shares, especially in markets such as Germany and Poland, implying that competition is rife.

But ECIS, which has complained about Microsoft’s behaviour to the Commission in the past, maintains that the way in which these figures are calculated skews the results towards more active and sophisticated users, and so increases the likelihood that alternative browsers will have been downloaded.

It also contends that, even if Microsoft’s figures are correct, the software group is still abusing a dominant position. This, it claims, needs to be addressed by “a ballot screen remedy requiring Microsoft to present Windows users with a straightforward, unbiased opportunity to choose for themselves among available browsers”.

Thomas Vinje, partner at law firm Clifford Chance and spokesman for ECIS, said: “Even if one accepts Microsoft’s preferred usage shares, the majority of the market remains foreclosed to competitors – and a majority of consumers remain denied a genuine choice of browser.”

ECIS also said it had dismissed as “purely speculative” Microsoft’s claim that the Commission would be acting illegally if it made the software group carry rival web browsers.

Microsoft has argued that the Commission itself would be in danger of negatively affecting competition in another, related market – that for search – and entrenching the position of US rival, Google.

Ms Kroes is likely to reach a final decision on whether Microsoft’s behaviour breaches antitrust law in the autumn.