Windows defence on IE7 search is no defence

Stan Beer
Wednesday, 03 May 2006 12:28

Business IT - Technology

The news that Yahoo has weighed into the argument between Microsoft and Google over the bundling of Windows Live search as the default search engine with the upcoming Internet Explorer 7 browser is amusing. The source of amusement is not so much that the distant number two player in the search space is ganging up with the even more distant number three player. It's just that their arguments are so obviously ludicrous.

To bring us all up to speed, Google has complained to both the US Justice Department and the European Commission (EC) over Microsoft making MSN Search the default search engine in the new version of its dominant Internet Explorer browser, IE7. The current version IE 6 has about 85% market share. Google believes that Microsoft is once again trying use its near market monopoly to squash competition.

Google believes Microsoft is trying to make it difficult for users to choose any other search engine except Microsoft's on the browser by making its own product the default search window on the toolbar.

However, representatives from both Microsoft and Yahoo have publicly said that Google is being hypocritical. They say Google has deals with companies like Mozilla, which makes the second most popular browser Firefox and PC maker Dell, where Google is the default search window in the browsers.

If this is the best defence that Microsoft and Yahoo are able to put up in attempt to debunk Google's complaints, then I don't like Microsoft's chances in the courts. There is absolutely no comparison between what Microsoft intends to do with IE7 and what Google has done with either Mozilla's Firefox or Dell.

It is true that both Microsoft and Google make their search engines the default in the respective browsers. However, there is a huge difference.

In the case of Google, it pays hard cash to Mozilla and Dell to get the right to have its search engine placed as the default in the browsers. This is fair use of marketing capital. In addition, neither the Mozilla Firefox browser, which has 11% market share, nor Dell PCs have a near monopoly of the market.

By contrast, Microsoft has a browser, Internet Explorer, with 85% market share and it also owns a search engine with 11% market share. Microsoft does not need to pay one cent to place its search engine in the lead position on its browser, which sits on the vast majority of PCs in the world. What that amounts to is using a near monopoly position to stifle competition.

Microsoft argues that it will be easy for IE7 users to change the default search engine to Google if they want to. However, "easy" is a relative term. For any IE7 user, it's always going to be easier to just leave the default browser as it is - Microsoft's factory setting.

For those who argue that Microsoft should be free to do with its own software as it sees fit, they should recognise one fact. Today, about 95% of computer owners are locked into using expensive proprietary software running on an expensive operating system that is so insecure it has spawned an entire industry devoted to protecting users from hackers. This situation has arisen because of one market player has been allowed to become so dominant that it can use its position to effectively stifle competition.

Hopefully the Department of Justice and European Commission will both bear that in mind when they consider Google's complaint.