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	<title>Comments on: EU Responds to Microsoft&#8217;s Un-Browser Plan</title>
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	<link>http://blogs.gartner.com/martin_reynolds/2009/06/12/eu-responds-to-microsofts-un-browser-plan/</link>
	<description>A Member of the Gartner Blog Network</description>
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		<title>By: Martin Reynolds</title>
		<link>http://blogs.gartner.com/martin_reynolds/2009/06/12/eu-responds-to-microsofts-un-browser-plan/comment-page-1/#comment-6</link>
		<dc:creator>Martin Reynolds</dc:creator>
		<pubDate>Sun, 14 Jun 2009 04:12:27 +0000</pubDate>
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		<description>Thanks, Karsten. This is a tricky subject, and I&#039;d like to offer a few more thoughts.

The EU Commission is rooting its judgments in language around consumer harm. Consumer harm is the acid test of a competitive market. For example, if I offer a better product at half the price and eliminate all competition, should I be forced to raise my price to protect competition? Obviously not, unless I then use my dominant position to raise prices - and run into very clear antitrust territory. 

One question that might be raised, is why are computer manufacturers not bundling Opera on their systems? The answers could include: there is no demand for it; it is easily loaded at any time; it costs too much.

Another question is, what exactly are the rules? 

Last time, it was unbundling. This time, it looks like bundling someone else&#039;s product. If consumers still choose Microsoft, will the Commission reverse its decision?

Microsoft&#039;s solution has positives, in that it pushes the issue to market forces. But obviously, the Commission expects the market to choose Microsoft, which is why they suggest the ballot button.





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		<content:encoded><![CDATA[<p>Thanks, Karsten. This is a tricky subject, and I&#8217;d like to offer a few more thoughts.</p>
<p>The EU Commission is rooting its judgments in language around consumer harm. Consumer harm is the acid test of a competitive market. For example, if I offer a better product at half the price and eliminate all competition, should I be forced to raise my price to protect competition? Obviously not, unless I then use my dominant position to raise prices &#8211; and run into very clear antitrust territory. </p>
<p>One question that might be raised, is why are computer manufacturers not bundling Opera on their systems? The answers could include: there is no demand for it; it is easily loaded at any time; it costs too much.</p>
<p>Another question is, what exactly are the rules? </p>
<p>Last time, it was unbundling. This time, it looks like bundling someone else&#8217;s product. If consumers still choose Microsoft, will the Commission reverse its decision?</p>
<p>Microsoft&#8217;s solution has positives, in that it pushes the issue to market forces. But obviously, the Commission expects the market to choose Microsoft, which is why they suggest the ballot button.</p>
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		<title>By: Karsten</title>
		<link>http://blogs.gartner.com/martin_reynolds/2009/06/12/eu-responds-to-microsofts-un-browser-plan/comment-page-1/#comment-4</link>
		<dc:creator>Karsten</dc:creator>
		<pubDate>Sat, 13 Jun 2009 11:24:40 +0000</pubDate>
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		<description>Competition law is about enforcement of market rules, consumer benefit is secondary because a free competitive market benefits consumers. Microsoft&#039;s self-imposed remedies are irrelevant. It needs to comply with European market rules. Opera filed a complaint on grounds of European law and indeed the competition is distorted by bundling.

&quot;However, in the presence of competitor complaints, a dominant market share, and consumers that don’t seem to care, the Commission is struggling to find a sensible remedy.&quot;</description>
		<content:encoded><![CDATA[<p>Competition law is about enforcement of market rules, consumer benefit is secondary because a free competitive market benefits consumers. Microsoft&#8217;s self-imposed remedies are irrelevant. It needs to comply with European market rules. Opera filed a complaint on grounds of European law and indeed the competition is distorted by bundling.</p>
<p>&#8220;However, in the presence of competitor complaints, a dominant market share, and consumers that don’t seem to care, the Commission is struggling to find a sensible remedy.&#8221;</p>
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