Microsoft to offer IE8 at retail for EU Windows 7 buyers

Most people, of course, will acquire Windows 7 on a new PC. Computer makers, Microsoft said last week, will be free to install whichever browser, or browsers, they want, whether IE8 or a rival such as Mozilla's Firefox or Google's Chrome.

"Microsoft told me that they're not going to offer compensation to OEMs," said Rosoff, talking about the practice of software vendors paying for placement on new machines. "If they did, that might run them into antitrust hot water. So OEMs can now shop that space around. This is a revenue opportunity for the OEMs," Rosoff continued, especially if the computer maker sells placement for just a single browser on its machines.

Google is the most likely browser maker to offer computer makers pay-for-placement, said Rosoff. "That's the interesting question. What's Google going to do here?" he said.

Last week, Microsoft said that it would remove IE8 from Windows 7 for the European market, a move it made to make the OS's Oct. 22 ship date in light of a looming decision by regulators to force the company to make it easier for users to pick other browsers.

"What Microsoft and the OEMs don't want is a 'ballot screen,'" said Rosoff, referring to the solution that most believe the European Commission will force on Microsoft. Such a ballot screen would offer multiple browsers, appear the first time a user tries to connect to the Internet on a new PC and then either download or install from the hard drive the selected browser(s).

Dubbed "must-carry" by some, including Microsoft, the ballot screen approach could be a support nightmare for Microsoft and its OEM partners. "If that browser you picked doesn't work, you're going to call the OEM for help," said Rosoff. "That would put Microsoft in the position that they have to coordinate with OEMs and other browser makers who would provide the actual support.

"Microsoft and the OEMs would look at that as a big burden," said Rosoff. "That's why Microsoft hopes that [it's move last week] satisfies the EU."

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