Perhaps the next time Brad Smith heads to Brussels, it will be for a vacation.
After years of wrangling with Microsoft, the European Commission announced an accord with the software giant Wednesday on several fronts that seems poised to put an end to its antitrust concerns with Redmond.
Brad Smith
(Credit: Microsoft)In the wake of the announcement, I spoke to Smith, Microsoft's general counsel, about the decision, what it means for the future of Windows, and whether the company sees its spot on the antitrust hot seat now being taken up by other companies, including Google.
Here's an edited transcript of our conversation:
Q: Is this really it as far as Europe is concerned?
Smith: This is definitely a major milestone for Microsoft. Today's announcement reflects a broad set of agreements that really address a wide array of issues. At the same time, we obviously need to keep our eye on the ball. Antitrust issues will continue to be important for us, just as they are going to continue to be important for a number of other leaders in our industry. We're going to have to do an excellent job implementing these agreement. We are going to have to do an excellent job addressing any new issues that arise in the future. Having said all that, I also think it is fair to say, as Commissioner [Neelie] Kroes did when she spoke in Brussels, this does represent the closing of one chapter and gives us the opportunity to open a new chapter. We're definitely enthused about that opportunity and we're committed to ensuring the next chapter is a positive and constructive one.
One of the things that Steve Ballmer talks a lot about in terms of antitrust issues is getting legal clarity on what one can and can't do. Do you feel like you now have that understanding with the EU?
Smith: I think this gives us a great deal more clarity. I think it gives the industry as a whole more clarity. It's perhaps most helpful in the area of interoperability because it really implements a new framework. It applies to a broad array of Microsoft products--Windows, Windows Server, Exchange, SharePoint--and for all of these products it has certain principles that we have to adhere to. It addresses the way we implement file formats.
At the same time, no advance on any single day can ever answer all questions for all companies for all time.
Essentially the EU has said through its very objections that you can't put a media player in Windows and you can't put a browser in Windows. What do you feel Microsoft can include in future versions?
Smith: There are two things to think about. First is what gets included in Windows, and second, what's the right way to address something that is included.
Our basic approach is to include in Windows, software that has APIs (application programming interfaces) that will be beneficial for other applications to call on and use. The browser is definitely an example of that. It's quite probably even more important in that role today than it was, say, when the browser issues first arose in the 1990s. The media player plays a similar role in terms of some broad APIs that are used by a wide variety of other applications.
There are other things that we have put in Windows in the past that don't necessarily involve the same role. A good example of that is Windows Live Messenger. We had Windows Messenger in Windows XP. It's not in Windows Vista or Windows 7 We're trying to make thoughtful decisions about what is included.
Then the second question that arises is how do things get included. How do we document APIs that our browser is using so that other browsers can use them as well? That's part of the U.S. consent decree.
How do we ensure that [computer makers] have flexibility to offer competing choices? How do we ensure that consumers are aware of competing choices and can use them if they wish. That latter part is an area where different governments have chosen different approaches at different times. The U.S. Department of Justice chose one approach in its consent decree. The Korean Fair Trade Commission chose a second approach. The European Commission in the media player case in 2004 chose a third approach. Today's announcement on the browser reflects the European Commission choosing a fourth approach.
Some people have the opinion that as a result of these different antitrust issues, Microsoft really finds itself with one hand tied behind its back as it competes in the battles of today. Do you believe Microsoft in the current antitrust environment competes on an even footing with some of the other Internet giants?
Smith: I do believe it is very important for all technology leaders in our industry to follow the same laws and obey the same rules. The rules don't necessarily apply in the same way when a company has a small market share as it does when a company has a large market share. But there are a number of companies that have large market shares for very important products. We've taken a number of steps to get into line with new legal rules in this field. The law has evolved and we've needed to evolve to address these new obligations.
We do believe our competitors need to play by the same rules. They've often been at the forefront of asking regulators to evolve the law in new directions. Now that the regulators have done so, we believe they need to pay attention as well.
Do you anticipate a period of time over the next few years where Microsoft is more likely to be the subject of antitrust inquiries or the company on the other side of the table for a change?
Smith: I think that we have addressed a very wide array of issues. Perhaps, in part because we were the first company to have to go through these inquiries, at least since the dawn of the PC era. We've probably had to go farther and sooner than other companies have had to do. We're now in an era where a different company seems to be in the headlines for competition law issues, if not every day, at least every month.
I think that what we are going to see in the next decade is this field of law being applied to a wide number of technology leaders that have high market share. We're going to see that, not only in Washington and Brussels, but we're likely to see that in more countries around the world simply because the global economy has evolved.
Have you expressed concerns specifically to Europe or Washington, D.C., about some of Google's behaviors?
Smith: We were very transparent last year when Google entered into its agreement with Yahoo. We felt that that was an illegal agreement that Google had entered into for the sole purpose of preventing Microsoft from becoming a more successful competitor, together with Yahoo, in the search space.
It was only when the Department of Justice informed the parties that it was on the verge of filing suit that Google decided to drop that agreement. We have not been shy about raising concerns when we have them.
It was only a couple hours after you guys settled with Brussels that we heard from D.C. with regards to Intel. When you initially heard that the FTC was filing suit against Intel, did you have feelings of empathy toward what their lawyers are going through, or what were your initial reactions?
Smith: I obviously know from a lot of firsthand experience the challenges that arise when a company needs to address these kinds of issues. Our road was a long one and it had its share of difficult moments. Antitrust issues are never easy for company to address.
This isn't a case where Microsoft has taken a public stance or even voiced to the regulators a position, is it?
Smith: We have not taken any public or nonpublic positions on the issues.
Are you guys looking to reach an agreement with Plurk? You guys said that you used code you shouldn't have? I'm curious if you are trying to negotiate some sort of settlement with them?
Smith: I wouldn't want to say anything that goes beyond the public statement we put out.
It does seem when I look at any particular issue with regards to the Internet, Microsoft tends to have a much more cautious approach. It seems like it is tough to compete when others are bundling more than you.
Smith: I think our goal is to be thoughtful but also fast-moving. As we look at the Internet today, it is increasingly a regulated space. That wasn't the case a decade ago. I think a thoughtful company needs to really think through how its products and services are going to comply with the regulations that are going to be enforced or likely to be applied in many different countries around the world. At the same time, one cannot let that get in the way of moving forward quickly. I think it's striking that balance that is really quite important. One needs to move fast. One shouldn't move faster than speed of thought and yet one shouldn't be so thoughtful that one simply analyzes problems and fails to solve them.
Do you think Microsoft has erred a little too much on side of caution in recent years?
Smith: I don't know that we've erred too much on the side of caution, but I do think it's extremely important we move quickly. This is a very dynamic space it is certain to remain a very dynamic space. Customers are interested in deploying new products and services, whether it is on the client, on the server, or on the cloud. The real key is to develop the capability to be both thoughtful and fast moving.
LOS ANGELES--Although Microsoft intends to talk a bit about its plans for the future of Internet Explorer this week, the company won't offer preview code of its next browser, CNET has learned.
The software maker is also not planning to announce a move to the WebKit engine, as some had speculated.
Ray Ozzie, speaking Tuesday at Microsoft's Professional Developers Conference in Los Angeles.
(Credit: Ina Fried/CNET)In his opening keynote at the Professional Developers Conference on Tuesday, Chief Software Architect Ray Ozzie pledged that Microsoft will make Internet Explorer the absolute best Windows browser, but did not offer further details.
Microsoft is expected to talk more about its browser plans as part of Wednesday's keynote speech. During that talk, he is expected to talk about some--but not all--of its "focus areas" for the next browser version, a Microsoft representative told CNET.
The latest version of IE 8 was released in March and is also built into Windows 7. Despite the new release, though, Microsoft faces intense competition from Firefox as well as from Google and Apple.
In addition, Microsoft has struggled to get Internet Explorer users to move past IE 6.
European Union regulators said Wednesday that Microsoft can go ahead and start using its latest proposed "ballot screen," which will let new users of Windows choose which browser--or browsers--they wish to use.
The decision to let Microsoft "market test" the latest version would seem to mark the wrapping up of the latest antitrust skirmish with Brussels.
More than a decade after Microsoft first started including a browser with Windows, regulators said earlier this year that they had reached the preliminary view that such an inclusion violated European antitrust law.
In response, Microsoft initially said it would ship Windows 7 in Europe without a browser at all, seemingly challenging the logic of the decision by the European Commission, the executive arm of the EU. However, amid indications that such a move would not fly, Microsoft in July offered a proposal that more closely matched what regulators and competitors wanted--a ballot screen that lets users choose which browser or browsers they wish to install.
Since then Microsoft, regulators, and competitors have been going back and forth about how that screen would look and operate.
"The improvements that Microsoft has made to its proposal since July would ensure that consumers could make a free and fully informed choice of web browser," Europe's antitrust authority said in a statement. Among the changes since Microsoft's July proposal is the agreement by Microsoft to add more information before users select a browser. Microsoft will now first present users with a screen explaining what a browser is and will then offer "Tell me more" buttons for each browser.
Under the revised proposal, Microsoft would, through Windows Update, make available for five years in the European Economic Area a screen allowing users of Windows XP, Windows Vista, and Windows 7 to choose which Web browsers they want to install. PC makers will also be able to install competing Web browsers and, if they choose, set those as the default browser and disable Microsoft's Internet Explorer.
"The Commission's preliminary view is that Microsoft's commitments would address these competition concerns and is market testing Microsoft's proposal in light of these requirements," The EC said in its statement.
For its part, Microsoft said it welcomed the European Commission's decision.
"For Microsoft, today's decision is a significant step toward closing a decade-long chapter of competition law concerns in Europe," general counsel Brad Smith said in a statement.
Update: Smith also spoke to CNET about the deal and its potential impact on others in the industry. Click here to read that interview.
Artists put the finishing touches on a replica of the Golden Gate Bridge constructed from soup cans. The June stunt was aimed at drawing awareness to Microsoft's Browser for the Better campaign, in which the software maker is donating to a food bank for each download of Internet Explorer 8.
(Credit: Microsoft)Microsoft is extending a promotion that is designed to spur downloads of Internet Explorer 8 with the promise of donating food to the hungry.
The "Browser for the Better" effort kicked off in June. Under the plan, Microsoft was donating $1.15 in food for each download completed through the program's Web site, up to a maximum of $1 million.
The program was slated to end early this month. However, Microsoft never took the site down and announced formally last week that it is extending the promotion through the end of September.
Microsoft declined to say how many downloads the promotion has received, but the site's Web site reflects the updated deadline and still says that Microsoft will donate a maximum of $1 million.
Besides extending the deadline, the software maker is making one other change to the program--doubling the donation per download (to $2.30) for those who are moving from IE 6. Microsoft has said it would like to persuade more users to move off IE 6, but must nonetheless support those who choose to remain with the years-old browser.
According to Net Applications, IE 6 has 27 percent of the global browser market, as compared with 23 percent for IE 7 and more than 12 percent for IE 8. Various versions of Firefox account for 22 percent of the market, while Apple's Safari holds 4 percent market share.
The Browser for the Better push is just one of many ways that Microsoft is promoting IE 8, including a promotion with Nickleback as well as the boring-but-effective methods of pushing it out through Microsoft's automatic updating mechanisms.
Firefox launched the latest update to its browser, Firefox 3.5, in June.
It's been roughly eight years since Microsoft released Internet Explorer 6, but in many ways the company is still very much tied to the aging product.
Although Microsoft has released two major versions of Internet Explorer in the past couple of years, for many, the face of Internet Explorer is still IE 6 in all its tabless glory.
In large part, that's because many of Internet Explorer's users are the ones who tend not to change the browser that comes with their operating system--either because that's the type of consumer they are, or because they are working on a work machine in which they are not able to upgrade to a later version of IE or switch to another browser.
Amy Barzdukas, the general manager for Internet Explorer, said in an interview this week that Microsoft's perception is "being built by a browser that was fine technology eight years ago or a decade ago."
But that's frustrating, particularly since Microsoft has invested a fair amount of effort in the last couple of years trying to rebuild IE after letting it languish for several years. Microsoft added things like tabbed browsing and a phishing filter back with Internet Explorer 7, which debuted in October 2006, and earlier this year launched Internet Explorer 8, with anti-malware features as well as a private browsing option and improved standards support.
Even with that work, though, IE 6 remains not only the most widely thought of version of Internet Explorer, but also the most widely used version of the browser, at least by a narrow margin. According to Net Applications, IE 6 accounts for 27 percent of the browser market, compared to 23 percent for IE 7. Microsoft's new IE 8 has more than 12 percent of the market, while Firefox 3.0--the most widely used version of that product--has 16 percent (See chart below).
Overall, Microsoft has been losing ground for several years to Firefox and other browsers. After reaching near ubiquity in the post-Netscape era, IE's global market share is now less than 70 percent. However, Barzdukas is hopeful that the trend is starting to shift with the release of IE 8.
"To the extent that IE was losing share over the winter, any rate of loss has substantially slowed since we came out with IE 8, and in some geographies IE overall has actually gained significant share," Barzdukas said.
One of the biggest things that could help Microsoft, Barzdukas said, is if more people understood that there were better browser options available from Microsoft. She has taken part of that task upon herself, making a pest of herself when she is at friends' houses for dinner--checking to see what version of the browser they are using.
A growing chorus of Internet users have asked Microsoft why, if it really wants people to move to IE 7 or IE 8, it doesn't just end support for IE 6. After all, there have been plenty of calls for the death of IE 6, particularly from Web developers, who are weary of the work required to make their sites work in multiple versions of Internet Explorer, as well as Safari, Firefox, and other browsers.
... Read more
Microsoft's proposed "ballot screen" that would let users in Europe choose which browser they want on their PC.
(Credit: Microsoft)It looks like there won't be a browserless version of Windows 7, after all.
Microsoft said late Friday that it won't ship the Windows 7 "E" version of Windows even though Europe has yet to sign off on its revised plan. The plan calls for the company to ship Windows 7 with Internet Explorer, but present a ballot screen in which users in Europe can decide whether they want Internet Explorer or another browser.
The software maker had originally proposed shipping Windows 7 in Europe without a browser at all--the so-called "E" version of the operating system. However, European regulators indicated that might not satisfy its concerns.
Microsoft announced last week that it was open to the "ballot screen," but said that it would wait to can the browserless "E" version until European regulators approved its plan.
The software maker said late Friday that it decided to ship the same version of Windows 7 for Europe after PC makers complained that having to use the browserless version of Windows 7 for a short period of time would be a pain.
"In the wake of last week's developments, as well as continuing feedback on Windows 7 E that we have received from computer manufacturers and other business partners, I'm pleased to report that we will ship the same version of Windows 7 in Europe in October that we will ship in the rest of the world," deputy general counsel Dave Heiner said in a statement.
The commission had said it "welcomed" Microsoft's move, also giving the software maker some confidence that it could ship Windows 7 with the browser included. If the commission accepts Microsoft's proposal, it will fully implement that proposed ballot screen to Windows 7 buyers in Europe.
"One reason we decided not to ship Windows 7 'E' is concerns raised by computer manufacturers and partners," Heiner said. "Several worried about the complexity of changing the version of Windows that we ship in Europe if our ballot screen proposal is ultimately accepted by the Commission and we stop selling Windows 7 'E'. Computer manufacturers and our partners also warned that introducing Windows 7 'E', only to later replace it with a version of Windows 7 that includes IE, could confuse consumers about what version of Windows to buy with their PCs."
The move also solved a challenge for Vista users in Europe, who under the previous plan would have had to do a clean install to move to Windows 7. It also allows Microsoft to sell an "upgrade version" of Windows 7 in Europe. Microsoft had previously said it would only sell a full version of the OS, though it had said it would sell that at the upgrade price, at least for a time.
Those who pre-ordered Windows 7 "E" through a recent discount offer will get the full version, as Microsoft had promised. However, Microsoft plans to now sell Windows 7 upgrades in Europe and also offer a higher-priced full version (for those without an earlier copy of Windows)--similar to what it is doing in the rest of the world.
Many people think that the browser is starting to replace the operating system as the center of the personal computer.
Naturally, the view that Windows is on a path to irrelevance is not one generally espoused by Microsoft. That said, at least some inside Redmond's walls argue that the Web browser needs to start acting more like an operating system.
Helen Wang
(Credit: Microsoft)"Some of today's browser policies are not very safe," says Microsoft researcher Helen Wang.
Wang, who has been at Microsoft since getting her doctorate from University of California at Berkeley in 2001, argues that the Web browser should act as more than just a file clerk that rubber-stamps each request that comes its way. Rather, it should act more like a traffic cop, keeping things moving smoothly and ensuring that the computer's resources are fairly allocated.
In short, Wang says, the browser needs to act more like Windows does--making sure that different Web applications are protected from one another--even those running within the same site. So Wang and her team came up with a prototype, called Gazelle, that does just that.
Microsoft first outlined Gazelle earlier this year, but has only recently started to detail its thinking. Wang plans to present a paper on Gazelle at the Usenix security conference next month, and last week Microsoft posted an article on its Web site explaining more about Gazelle.
Wang isn't trying to suggest Windows is going away. Indeed, she says, Gazelle depends on Windows, acting merely as the middleman for Web pages seeking to access a computer's resources.
"We're really trying to leverage the decades of operating system experience and apply that in the Web and browser setting," Wang said.
Microsoft is also trying to be clear that Gazelle is not the immediate replacement for Internet Explorer, which has been losing share to rivals, including Mozilla's Firefox and Apple's Safari. The company has yet to commit to commercializing Gazelle in any way, meaning it remains just one of scores of projects incubating inside the company's research labs.
Many outside Redmond, though, see the browser finally starting to take on the preeminence that many had assumed it might back in the early days of Netscape. Google's decision to offer Chrome, some think, was more about having an engine for running its Web applications than it was offering an alternative means for serving up traditional Web pages.
Modern browsers, Wang said, have taken a step in the right direction by isolating different browser tabs so that if one tab crashes, the whole browser doesn't get taken with it. Wang said that Chrome and Microsoft's IE 8 take steps toward increasing the reliability of Web browsing, but she argues far more drastic steps are needed.
"I think Gazelle marks a significant departure from all previous browsers, including Chrome and IE 8," Wang said.
For now, Gazelle is very much a prototype. It borrows much of its actual rendering technology from Internet Explorer itself. And although it can display 19 of Alexa's top 20 Web sites, there are still plenty of things it can't do. It also runs more slowly than Internet Explorer, particularly when opening new Web sites.
But Wang said it offers Microsoft--and the industry--a road map for how the Browser should evolve.
"I think this is the right way to go and I think this can be practical," Wang said. "It will also take a lot of work."
Internet Explorer 8 now comes with a Nickleback.
No, Microsoft isn't again offering cash to get people to download the browser. This time it has partnered with Live Nation and the band to offer a custom version of the browser.
(Credit:
Amazon.com)
The software maker is sponsoring Nickleback's 2009 tour as well as Live Nation's Bamboozle music festival. As part of the tie-up, users can download music-themed versions of the browser.
Those who download Internet Explorer 8 from a special Web site gain access to a new live version of Nickelback's hit single "Something in Your Mouth," as well as video of the band on tour. There is also a Bamboozle version of Internet Explorer 8 available at a separate Web site.
Microsoft routinely allows others to create and distribute custom versions of its browsers. Of course, the timing of this is rather interesting considering it comes the same day that Mozilla launched Firefox 3.5, the latest version of its Web browser.
There is also a start-up, Brand Thunder, that creates custom branded versions of Firefox.
Artists put the finishing touches on a replica of the Golden Gate Bridge constructed from soup cans. The stunt was aimed at drawing awareness to Microsoft's Browser for the Better campaign, in which the software maker is donating to a food bank for each download of Internet Explorer 8.
(Credit: Microsoft)Although Microsoft is pulling Internet Explorer 8 out of Windows 7 in Europe, the software maker is also busy in the U.S. trying to get folks to download its latest browser.
CNET News Poll
One piece of the effort is a charity push in which Microsoft will donate meals to a food bank for each person that downloads IE 8 via a special "Browser for the Better" Web site. Technically, the company is donating $1.15 per completed download, up to a maximum of $1 million.
Although Microsoft is also pushing out Internet Explorer 8 over Windows Update and including a version of it with Windows 7 (except in Europe), the company is trying to build awareness of the latest version and spur active usage.
The software maker has seen its browser share--which once topped 90 percent--continue to decline, with Mozilla's Firefox having gained considerable ground. The company also faces competition from Apple, Google and others in the browser arena.
As of last month, Internet Explorer's global market share stood at 65.5 percent, according to Net Applications, compared with 22.5 percent for Firefox, 8.4 percent for Safari, and 1.8 percent for Google's Chrome.
To draw attention to the food donation effort, the company staged events in San Francisco and New York this week. In San Francisco, the company had an artist build a replica of the Golden Gate Bridge out of soup cans. I checked it out and did a short video interview with Microsoft's Pete LaPage about the effort.
The company is also running a series of online ads trying to highlight some of the browser's features, such as its support for "accelerators" that aim to make it quicker to get to tasks like mapping and blogging.
Video: S.H.Y.N.E.S.S. - Internet Explorer 8
So what do you think, is the promise of Microsoft donating money enough to make you download IE 8? And what about the ads, do they make you hungry for more or just lose your lunch?
Adobe's BrowserLab is a hosted service that allows Web developers to visualize what their site looks like in different browsers.
(Credit: Adobe)Adobe on Tuesday said it is offering a free preview of its BrowserLab service, which allows Web developers to quickly see what their site looks like on a number of browsers.
The technology, previously code-named Meer Meer, was shown last year at the company's Max developer conference. Using virtualization, the tool can show how a site will look in Firefox, Internet Explorer, and Safari running on different operating systems. Running BrowserLab requires a Mac or PC with Adobe Flash 10.
"Cross-browser testing has been one of the biggest challenges for Web designers because it is such an arduous and time-intensive task," Adobe's Lea Hickman said in a statement. "Now with Adobe BrowserLab, designers have a simple solution that enables comprehensive browser compatibility testing in just a matter of minutes, leaving Web designers with more time to be creative and deliver the high-impact sites customers are demanding."
Designers can compare a site in two browsers side by side as well as use an "onion skin" mode that shows a site in multiple browsers overlaid one on top of the other.
Adobe said that the preview version would be free, though it plans to charge at some point.
BrowserLab "will move to be a paid service down the line, though we have not announced the timing," Adobe product manager Scott Fegette said in a statement. "Currently the focus is on getting the preview out to users and making sure we're providing the best possible user experience."
Microsoft showed off a similar tool, SuperPreview, at its Mix09 event in Las Vegas earlier this year. Microsoft announced that the latest version of its Expression Web software for Windows would include the feature and show multiple browsers via a cloud-based service. It also made a free standalone version of SuperPreview available to allow users to compare how Web pages render in the three latest versions of Internet Explorer--IE 6, IE 7, and IE 8.
Fegette said that Microsoft's approach requires a large PC-based application.
"All we know is what was announced about SuperPreview a couple months ago at Mix, which at its core appears to be a large, Windows-only desktop application available for download which provides previewing support for locally-installed versions of Internet Explorer 7 and 8 alongside a dedicated IE 6 emulator, with the promise of 'cloud-based access' to alternate operating systems and browsers at an undisclosed point in the future," Fegette said.
BrowserLab's "onion skin" view compares how a Web site looks in multiple browsers with different browsers' views overlaid on one another.
(Credit: Adobe)






