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February 25, 2009

Google Takes EU Side in Microsoft IE Monopoly Case; Will It Come Back to Bite?

Google is siding with the European Commission in its disapproval of Microsoft bundling Internet Explorer with Windows. Google says that Microsoft has an unfair advantage in the browser market as a result of this practice.

But will such a stance come back to bite Google in the butt? In 2007, Google released Android, a mobile operating system, and then last year Chrome, an internet browser. In the next year or two, Android will begin being released on netbooks (aka small laptops). Google could use that opportunity to bundle Chrome and increase their browser market share, but they'll now face criticism if they do.

And as one smart commenter on the Google Public Policy blog pointed out, there's no criticism of Apple bundling their Safari browser with Mac OS (not to mention the constant requests to do so for Windows users who have downloaded iTunes).

Sure, Apple doesn't have a monopoly on the browser market with Safari (and there's a good reason for that until perhaps yesterday's updated release of the browser), but what other purpose would they be attempting to achieve with the bundle?

Of course, Google's CEO Eric Schmidt currently sits on the board of Apple, so it wouldn't be prudent for them to criticize Apple for the same practice. But things are bound to get a little dicey on all fronts as Google also competes with Apple, maker of the popular iPhone.

Siding with the EU is also an interesting move just months after they canceled a partnership with Yahoo! which would have increased their dominance in the search advertising field.

Google has yet to master politicking, and watching them in this regulatory space should be interesting indeed.

Posted by Nathania Johnson on February 25, 2009 1:14 PM

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Comments

Another interesting thing to note is Google practically has a Search Engine monopoly... which they've been using to push Chrome. They haven't completely promoted it by whoring out the main Google.com search page but clearly, they could be using more assets to push competing browsers if they wanted.

How can Google claim that Microsoft has an unfair advantage when Google owns Google.com and Youtube.com - 2 of the most trafficked websites on the internet - and hasn't exhausted their options for promoting Chrome by utilizing them. They've actually just scratched the surface.

This is going to come back to bite Google in the butt. Here is my article from this AM: http://buildandearn.com/google-joins-antitrust-case-against-microsoft/

BuildAndEarn  February 25, 2009 2:45 PM

Microsoft has roughly 90% of the desktop OS market. Bundling IE & not allowing it to be uninstalled definitely gives them an unfair advantage. This situation also encourages websites to develop to IE (versus open web standards), since they know 90% of the users have it.

I think the following actions could help alleviate this problem:

1. Force Microsoft to make IE uninstallable (or at least inaccessible to users) via Add/Remove Programs.

2. Require PC vendors to limit the installation of any browser to say 25% of all new machines. This would prevent any browser vendor with deep pockets (Microsoft, Google,...) from “purchasing” 100% share on all new machines.

Re. comments about Apple, Android, Linux, etc.:
None of them have a monopoly share of the market. If they did, they would probably be scrutinized as well.

HereAndNow  February 25, 2009 5:38 PM

@ HereAndNow. I don't see why anyone should force Microsoft to un-bundle anything. It's quite simple really, if you don't like it don't use it. Switch to Linux/Mac...

Nobody is forcing Google to offer other search engines as an option when you visit Google.com, possibly that should be the case? Here in South Africa Google has over 90% of the search market.

As for developing for IE. I know it's a pain in the ass, but lets face it, if you have 75%+ of any market you ARE the standard. You get to make the rules.

Robert  February 26, 2009 2:38 AM

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