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In a continuation of the anti-trust skirmishes that Microsoft is facing, it seems they have decided to lose the battle in hopes of still winning the war.  In a confidential memo leaked to Cnet News originally intended for PC makers, it is made clear that Windows 7 will in fact ship in Europe minus the bundled Internet Explorer starting October 22.

After being told in January by the Commission that the inclusion of IE in Windows clearly violates European competition laws, and that they intended to impose a fine for Microsoft doing so; it seems Microsoft backed off.  They aren’t going down without at least an attempt of still holding their head up though. 

In their response to the Commission’s Statement of Objections, Microsoft maintains that:

“We believe we made a strong showing that including Internet Explorer in Windows is lawful so that no remedy is needed. We hope that the Commission will ultimately agree with us. In the meantime, we have to move forward with final planning for the release of Windows 7, so we’ve decided that instead of including Internet Explorer in Windows 7 in Europe, we will offer it separately. As noted, we will continue to discuss browser issues and other matters with the Commission.”

They apparently want to make the OS available in Europe the same time it comes out everywhere else rather than continuing their fight and ending up with a later launch date.  But, they still plan to make IE available to those that may want it.  Dave Heiner, Microsoft VP and Deputy General Counsel states “Given the pending legal proceeding, we’ve decided that instead of including Internet Explorer in Windows 7 in Europe, we will offer it separately and on an easy-to-install basis to both computer manufacturers and users.”

The European market will receive a product known as “Windows 7 E” which will work just like the Windows 7 that will be sold in the States, except they won’t have IE automatically included.  This still comes with a “but.”  Because like Mr. Heiner clarified, people there might end up with it anyway, since manufacturers are going to be given the option of preinstalling it before they ship their PCs.

“Microsoft will ... make it easy and convenient for PC manufacturers to preinstall IE 8 on Windows 7 machines in Europe if they so choose,” the original Microsoft memo is quoted as stating. “PC manufacturers may choose to install an alternative browser instead of IE 8, and [as] has always been the case, they may install multiple browsers if they wish.”

Microsoft was offered another option rather than simply removing IE from Windows 7, one that they didn’t seem to like very much.  The European Commission also brought up including both IE and other browsers by default.  They also discussed the option of something like a “ballot screen” where it would allow consumers to pick which browser they wanted during the setup process.  Microsoft didn’t go for it. 

“Important details of these approaches would need to be worked out in coordination with the Commission, since they would have a significant impact on computer manufacturers and Web browser vendors, whose interests may differ,” Heiner responds. “Given the complexity and competing interests, we don’t believe it would be best for us to adopt such an approach unilaterally.”

Could that be because of the rising popularity of Firefox in Europe and Microsoft wasn’t sure that the check mark in the ballot box would land next to their baby?  And given that if you buy a PC minus a browser, it’s not like you can just pop over to the Mozilla website and download Firefox—you need something to get you there. 

So, in a show of “You win for now,” Microsoft really isn’t giving up a whole lot.  Then again, to be perfectly honest, I don’t see the huge deal.  Yeah, my computer obviously came with IE preinstalled; there is nothing saying that I have to use it.  I don’t.  Pretty simple - in a real stab at Microsoft use their product to go download the competitions, then never open Microsoft’s again. 

Although I do like the idea of a ballot box to choose.  No wonder Microsoft doesn’t.  That route, we never have to touch theirs.  What’s your browser of choice?  Do you like IE or have you jumped to another?

Read: [ cnet]