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Will Microsoft Use Google To Boost Its Case In Front Of EC?

Ignore any bad stuff we’re doing, and just think about what Google (NSDQ: GOOG) might be able to do if we weren’t around. That appears to be the gist of an argument Microsoft (NSDQ: MSFT) is expected to make next month to the European Commission, which said earlier this year that its “preliminary view” was that the company violated antitrust laws by bundling Internet Explorer with Windows.

The Commission wants the company and computer makers to let users choose a specific browser when they buy a new PC. The New York Times cites an unidentified source who say that Microsoft will respond by claiming “that such a move would strengthen its rival Google’s dominance in the global search-advertising market.” The logic: Users will overwhelmingly choose Google’s Chrome or Mozilla’s Firefox. Both browsers use Google Search as their default search option. Hence, Google will become even more dominant in the search market.  “Not only would Google’s browser Chrome suddenly be on all Windows PCs, but it would strengthen Google’s dominance in search advertising,” says the NYT‘s source.

Microsoft, of course, is trying to get creative to avoid a stiffer punishment from the commission. But it’s an odd argument for the company to make. When you pick it apart, Microsoft is essentially admitting that an unbundled Internet Explorer—even with its recent remake—isn’t good enough at all to keep customers from fleeing to Google.

(Photo: Javier Aroche)

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May 7, 2009 8:49 PM ET
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Posted In: Legal, Regulatory, EC, Companies, Microsoft

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