Microsoft Probed by Australian Regulator on Browser Bundling

Australian Internet service providers and
corporate users are being asked to provide details of browser bundling
deals with Microsoft by the country’s national competition watchdog.

The Australian Competition and Consumer Commission (ACCC) has distributed a
letter asking for testimony by ISPs and companies using intranets about
alleged anti-competitive conduct by Microsoft to exclude Netscape
Communications’ Navigator browser from Web users’ PCs.

Michael Cosgrave, senior assistant commissioner for telecommunications for
the ACCC, admitted that the watchdog was monitoring Microsoft’s activities
in the Australian market.

“We’ve been keeping close tabs on developments in the USA, and obviously
we’re examining the Australian ramifications,” Cosgrave said.

The US Federal Trade Commission has an ongoing investigation on the same
issue, which is currently travelling through the court system.

In the letter, a copy of which was obtained by australia.internet.com,
cited enticements offered by Microsoft to ISPs as including “cash payments;
discounted or free software; and discounted or free technical assistance
and support.”

For companies operating intranets, the letter gave examples of “alleged
inducements” such as: “discounts on the cost of operating systems software,” and “a refusal to supply operating system software unless the company also acquired the Microsoft browser.”

A network manager from one medium-size Australian ISP, who declined to be
named, said that Microsoft had been signing such deals as early as two
years ago. The contract to which his company agreed to for distributing
Internet Explorer included clauses which specifically excluded Navigator,
and demanded that IE be installed on all internal computers.

“It’s hard to say that they’re anti-competitive, but they’re aggressive,
certainly,” the source said.

It is understood that the ACCC query arises from an unofficial complaint
made late last year, but that no ISP or company has been willing to come
forward and make a public statement.