Microsoft’s European Legal Problem

On every PC sold in the U.S., Internet Explorer is the default Web browser. According to the European Commission, this is unacceptable, and wants Microsoft (MSFT) to display a “Browser Choice Screen” (BCS) on every copy of Windows that has Internet Explorer set as the default browser.

Microsoft has announced that it found out that the BCS wasn’t showing up on some computers. They were able to pinpoint the problem to a fluke within Windows 7 SP1. When using regular Windows 7, Vista or XP the BCS should pop up when Internet Explorer is set as the default browser. Microsoft is taking steps to avoid paying (even more) fines to the EU.

For starters, Microsoft developed a quick fix and distributed it on July 3 to all Windows PCs running Windows 7 SP1. Microsoft also made sure that the BCS was available on all new Windows PCs shipped with Windows 7 SP1.

Microsoft also hired an outside investigation company to interview Microsoft employees about the problem. Getting to the bottom of this compliance issue is paramount. Microsoft will send the findings to the European Commission. This way, the Company hopes to avoid a fine.

Microsoft is extending the time in which they must display the BCS by 15 months for all PC users. The company rusts that this should pacify the European Commission.

Microsoft identified the cause of the problem. Its engineers were unaware that they had to update the BCS code for Windows 7 SP1. If Microsoft is found that they intentionally didn’t add the BCS, they could face up to $7 billion in fines.

Let’s wait and see....