Microsoft Corp. was warned by European Union regulators tochange how it shows Internet Explorer in its new Windows 8operating system to avert another antitrust clash, CompetitionCommissioner Joaquin Almunia said.

Microsoft, which starts selling Windows 8 in two days, was sentformal EU's antitrust objections today over its failure to complywith a settlement of an earlier probe that required it to display achoice of other web browsers.

“We have raised issues with Microsoft relating to Windows 8,”Almunia told reporters in Brussels today. “If a user decides to seta rival browser as a default browser, there should not be anunnecessary warning in Windows or confirmations by the user and theInternet Explorer icon should also be unpinned from the Startscreen. We expect Microsoft to address these issues.”

Microsoft has already been fined 1.68 billion euros ($2.17billion) in EU antitrust probes, including an 899 million-europenalty for failing to obey an order to share data withcompetitors. The Redmond, Washington-based company agreed in 2009to offer access to rival browsers as a part of a settlement torepair its relationship with the bloc's regulators. It toldregulators last December that it was complying with itscommitments.

Today's statement of objections is a step toward possible finesover Microsoft's failure to comply with its pledge to display achoice of web browsers to users beyond its own Internet Explorerprogram.

Robin Koch, a spokesman for Microsoft in Brussels, declined toimmediately comment on Almunia's comments on Windows 8. The companytakes the statement of objections listing the EU's antitrustconcerns over compliance with the settlement “very seriously,” hesaid.

The EU antitrust chief said he'd contacted Microsoft aboutWindows 8 and told management “at the highest level possible whatare my concerns and what kind of presentation should be avoided ifthey don't want to take the risk of new investigations.”

Almunia said in July that Microsoft may have misled regulatorsby failing to display a browser choice screen to users of theWindows operating system since February 2011. The company blamed atechnical error for not showing the screen to some users andoffered to extend until March 2016 a commitment to show it.

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Technical Error

Microsoft is strengthening its internal procedures to helpprevent a repeat of the technical error, Koch said in an e-mailedstatement. The company “will continue to cooperate fully with thecommission.”

The company said in July it only learned that month that itdidn't offer its browser choice software to some 28 millioncomputers running Windows 7 Service Pack 1, or 10 percent of thecomputers that should have received it. It distributed a softwarefix to computers that were affected.

Under the terms of Microsoft's 2009 pledge, consumers who buypersonal computers were given a choice of the 12 most widely usedbrowsers to install in addition to, or instead of, Microsoft'sInternet Explorer.

The EU can fine companies as much as 10 percent of yearlyrevenue if they “breached commitments made legally binding,”according to its statement.

Any fines for Microsoft may take into account repeat offenses,Almunia said in July in a reference to the EU's 2008 penalty forthe company's failure to obey an earlier EU decision. That rulingalso ordered it to provide information to software developers tomake compatible products.

Almunia said there were “no grounds” for EU officials tointervene on Microsoft's Windows RT software for tablets. Thesoftware, to be introduced on Oct. 26, prohibits any browser exceptfor Internet Explorer, according to a May blog post by MozillaCorp., maker of the rival Firefox browser.

Companies have raised “various issues about other aspects ofMicrosoft's compliance” that regulators had examined and didn't seeany reason to pursue, Almunia said. “We will remain vigilant and wewill continue to monitor all aspects of Microsoft's compliance withthe commitments in the future.”

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