* EU says investigation possible if no Windows 8 browser
choice
* Microsoft may face substantial fine for breaking browser
promise
* Software giant apologises for breaking pledge, accepts
responsibility
* Google may be next target for EU antitrust watchdog
BRUSSELS, Oct 24 (Reuters) - EU antitrust regulators have
told Microsoft not to repeat the mistake of denying
consumers a choice of rival Web browsers in its new Windows 8
operating system, in a dispute that has already cost the
software giant more than a billion euros ($1.3 billion) in
fines.
EU competition commissioner Joaquin Almunia said on
Wednesday he had spelt out his concerns to Microsoft about
Windows 8, its new flagship software product which is set for
release on Friday.
"I have precisely transmitted ... my concerns, what kind of
presentation should be avoided if they don't want to take the
risk of a new investigation," Almunia told a news briefing.
The company said it had taken heed of the warning,
indicating its desire to draw a line under its decade-long
battle with the European Commission.
"After discussions with the Commission, we are changing some
aspects of the way the browser choice screen works on Windows 8
and will have those changes implemented when Windows 8 launches
later this week," Microsoft spokesman Robin Koch said in a
statement.
Almunia's warning came with charges that Microsoft had
broken a promise to offer European consumers a choice of rival
browsers in its previous version of Windows, which could result
in a substantial fine.
Microsoft promised three years ago to offer browser choices,
to settle an EU antitrust investigation and avoid a penalty that
could have been as much as 10 percent of its global turnover.
But the European Commission said Microsoft had not fulfilled
its pledge between February last year and July this year,
confirming an earlier Reuters report.
"If companies enter into commitments, they must do what they
are committed to do or face the consequences. Companies should
be deterred from any temptation to renege on promises or even to
neglect their duty," Almunia told reporters.
Microsoft could face a significant fine as it is the second
time it has failed to comply with an EU order.
A sanction could top $7.4 billion or 10 percent of its
revenues for the fiscal year ending June 30, 2012 - but the
final figure is expected to be lower, as the infringement
covered a relatively short period of time.
Microsoft, which has already been penalised to the tune of
1.6 billion euros ($2.1 billion) in the last decade for
infringing EU rules, apologised. It has four weeks to reply to
the Commission's "statement of objections" or charge sheet.
"Although this was the result of a technical error, we take
responsibility for what happened, and we are strengthening our
internal procedures to help ensure something like this cannot
happen again," the company said in a statement.
NO TABLET PROBE
The EC action should serve as a warning to other companies,
said Susanne Zuehlke, a partner at Brussels-based law firm
Latham & Watkins.
"It shows that the Commission takes its enforcement
seriously and follows up on cases even when they appeared
closed," she said.
Almunia said he had no reason to go after Microsoft's
operating system for tablets, a market that includes rivals
Apple and Google.
"We have looked at Windows RT and on the basis of our
investigation so far there are no grounds to pursue further
investigation on this particular issue," he said.
The Commission said in July several companies had accused
Microsoft of only allowing its own Internet Explorer browser to
be installed on devices running Windows RT.
Microsoft's share of the European browser market has roughly
halved since 2008 to 29 percent, on a par with Google's Chrome
but behind Mozilla's 30 percent share, according to Web traffic
analysis firm Statcounter.
With the Microsoft case heading for resolution, the next
Web-related battle for the Commission is likely to be with
Google, the target of complaints by Microsoft and more than a
dozen other rivals over its core search engine business.
The world's most popular search engine is now in talks with
the EU watchdog that could help it avoid sanctions which could
amount to some $4 billion.
