Unfair practices by Microsoft Edge may spark EU scrutiny

A coalition of rival browsers and web developers has called on the European Commission to investigate Microsoft for allegedly giving its Edge browser an unfair competitive advantage, Reuters news report said.

Microsoft Edge browser license
Microsoft Edge browser license

In a letter sent to the Commission on September 17, Vivaldi, Waterfox, Wavebox, and the advocacy group Open Web Advocacy argued that Microsoft Edge’s preferential treatment within the Windows ecosystem violates fair competition principles.

At the heart of the dispute is the claim that Microsoft Edge, pre-installed as the default browser on all Windows PCs, gains an unmatched distribution advantage. The coalition asserts that this hinders users’ ability to select independent browsers, despite the EU’s existing regulatory framework. They point out that, unlike mobile platforms, Windows lacks a proper “choice screen” that allows consumers to select their preferred browser during setup.

The worldwide PC market — desktops and notebooks – grew 3.2 percent to 57.2 million units in Q1 2024, according to a Canalys report. Demand for AI-capable PCs and the transition to Microsoft Windows 11 PCs will propel the sale of PCs during the year, the report said indicating the importance of Microsoft Windows in the growth of the global PC market.

The letter echoes the concerns of Norwegian browser company Opera, which filed a legal challenge in July against the European Commission’s earlier decision to exempt Edge from the EU’s Digital Markets Act (DMA). The DMA sets out rules to ensure fair competition in the tech sector, including measures that make it easier for consumers to switch between services. However, the Commission determined in February that Microsoft Edge did not meet the criteria for a “gatekeeper” service.

Rival browser developers argue that this decision is a missed opportunity to curb Microsoft’s dominance in the browser market, particularly since Edge remains the gateway through which most consumers download other browsers. They further criticize Microsoft’s use of pop-up messages within Edge that allegedly misrepresent the features of competing browsers, discouraging users from switching.

Microsoft and the European Commission have declined to comment on the latest allegations, but the case has drawn increasing attention from EU regulators. While Edge’s global market share stands at around 5 percent, dwarfed by Google Chrome’s 66 percent, the complainants argue that Microsoft’s actions are creating barriers for smaller, independent browsers.

The coalition hopes their complaint will prompt the European Commission to reconsider its stance and take stronger measures to address what they see as anticompetitive practices. The outcome of these discussions could have wide-reaching implications for the tech industry and future enforcement of the DMA.

Baburajan Kizhakedath

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