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.
Microsoft says it doesn't plan to ever ship a browserless "E" version of Windows 7, though that's still the version being offered by many of its European online stores.
(Credit: CNET News)With its plans now centered on creating a ballot screen where users can choose which browsers to install, Microsoft has no plans to ever ship the browserless "E" versions of Windows 7.
Curiously, though, the "E" versions are still listed for sale on several versions of Microsoft's European online store. Nor did the software maker have a clear explanation of why those versions are still listed, weeks after the company said that it would ship the same version globally.
Although the UK site seems to have it right, many of the non-English sites, including Spanish, Dutch, and German versions, list only the "E" or "N" versions of the operating system. As it did with Vista, Microsoft does plan to continue selling an "N" version in Europe, which has the media player removed.
"Microsoft is working to refresh its international online store sites, just like retailers are now," the software maker said in a statement. The fact that the "E" versions were still listed was first noted by enthusiast site AeroXP.
In any case, Microsoft is being clear that it has no plans to ship a browserless version--those that preorder the "E" version will get the standard version.
As first reported by CNET News, Microsoft told computer makers in June that it planned to ship Windows 7 without a browser in Europe to try to address regulators' issues. However, both competitors and regulators expressed concerns with that plan. Ultimately, Microsoft reversed itself and said it was open to the "ballot screen" idea where consumers can choose which browsers they wish to install.
Earlier this week, Microsoft said that it would end on September 1 an offer to European buyers to get the full version of Windows 7 for the upgrade price, a relic of the browserless plan in which Microsoft said it would sell only the full version of the operating system.
Microsoft said Monday that it plans in a week to end an offer that allowed those buying Windows 7 in Europe to get the full version of the operating system for the price normally charged for the upgrade version.
Those who want to pre-order the full version for the upgrade price have until Aug. 31 to do so, Microsoft said in a blog posting. After Sept. 1, users will be able to order an upgrade version or pay a higher price for the full version, which does not require an earlier version of Windows be installed.
(Credit:
Microsoft)
The discounted full version dates back to Microsoft's original plan to deliver Windows 7 in Europe in a special "E" version without a browser. At that time, Microsoft said it would not do an upgrade version, but would instead offer the full version of Windows 7 at upgrade pricing.
However, amid widespread criticism and indications the browserless options wouldn't fly with European regulators, Microsoft said last month it would scrap that plan and instead allow users in Europe to choose which browsers they want from a ballot screen.
Microsoft said it is still working out the details on that front. "I hope to continue to keep people updated on our ballot screen proposal as we have more to share," Microsoft blogger Brandon LeBlanc said in Monday's posting.
As for the pricing, it varies by country, but Microsoft said it will offer a discounted rate on Windows 7 Home Premium upgrades for the remainder of 2009.
For now, in Britain, for example, the full version costs 99 British Pounds ($162). After Sept. 1 and through the end of the year, Microsoft will sell the upgrade version for 79 pounds ($130), while the full version will sell for 149 pounds ($245). Next year and beyond, the upgrade will sell for 99 pounds and the full version will be 149 pounds.
Microsoft also said on Monday that it will extend, for a time, a family pack option for Windows 7 to eight European countries-- the United Kingdom, Ireland, Germany, France, Switzerland, Austria, the Netherlands, and Sweden. Microsoft already announced plans to offer the family pack in the United States and Canada.
Update at 5:58 a.m. PDT: Ciao is based in Munich, Germany. Greenfield Online is based in Wilton, Conn.
Microsoft said Friday it has reached a deal to acquire Greenfield Online, the owner of consumer shopping sites, for about $486 million.
Greenfield's properties include Munich, Germany-based Ciao, one of the leading price-comparison and online-shopping sites in Europe. Ultimately, Microsoft said, Ciao's technology platform, online community, and merchant relationships will be integrated with Microsoft's Live Search.
Ciao is a European-based price-comparison and shopping site.
Ciao features consumer reviews and ratings. Microsoft said that, according to ComScore, Ciao has more than 26.5 million unique visitors per month across seven countries, who have generated more than 5 million product reviews.
The deal calls for Microsoft to commence a cash tender offer to purchase all of the outstanding shares of Greenfield for $17.50 per share, or roughly $486 million.
Wilton, Conn.-based Greenfield, which acquired Ciao in 2005, also owns an Internet survey business, which Microsoft plans to sell off. Microsoft said it has already secured an unnamed buyer for that unit.
Both transactions are expected to close during the fourth quarter.
Microsoft's offer for Greenfield trumps an earlier deal. In June, Greenfield said it was in takeover discussions with the Quadrangle Group and had secured an agreement to be acquired for $15.50 per share.
In a press release issued on Friday, Greenfield said that "immediately prior to entry into the merger agreement with Microsoft it had terminated its previously announced merger agreement with affiliates of Quadrangle Group LLC."
In connection with the termination of that deal, Greenfield said it is required to pay Quadrangle a $5 million fee.
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