Rival Browsers Accuse Microsoft of Unfair Edge Practices

A group of rival web browsers and web developers have called on the European Commission to include Microsoft's Edge browser in the scope of the Digital Markets Act (DMA), accusing the tech giant of giving its browser an unfair advantage. In a joint letter to the EU's antitrust regulators, companies such as Vivaldi, Waterfox, Wavebox, and the Open Web Advocacy group expressed their concerns, asserting that Microsoft's practices surrounding Edge on Windows systems undermine fair competition.

The letter comes in support of a legal challenge by Norwegian browser company Opera, which took the European Commission to court in July 2023, arguing that Edge was wrongly exempted from the regulations of the DMA. The DMA is a key piece of EU legislation designed to curb the market power of digital "gatekeepers" and promote competition by providing consumers with more choice. It specifically outlines rules for companies that control access to important online services, with the goal of preventing anti-competitive behavior.

The letter criticized Microsoft's practice of setting Edge as the default browser on Windows computers, which the group argued gives it a significant distribution advantage over competitors. This, they claim, forces rival browsers to compete under unequal conditions. Furthermore, they allege that Microsoft's pop-up messages within Edge misrepresent the features of competing browsers, further discouraging users from switching.

According to the letter, "No platform independent browser can aspire to match Edge's unparalleled distribution advantage on Windows." The group emphasized that while mobile operating systems like Android offer users a choice screen to select their preferred browser, Windows does not provide a comparable mechanism, which results in Edge being automatically installed and prioritized for most consumers.

Despite Edge holding just over 5% of the global market share—compared to Google's Chrome, which dominates with 66%—the complainants argue that Microsoft's leverage through Windows integration significantly disadvantages other browsers. They stress that Microsoft's market dominance through its operating system creates barriers for competitors, regardless of Edge's smaller global market share.

The European Commission had previously determined that Edge was not a gatekeeper under the DMA, reasoning that Microsoft allows users to easily uninstall apps, including Edge, from their systems. However, Vivaldi, Waterfox, Wavebox, and Open Web Advocacy insist that this assessment is flawed and that the current practices are stifling competition.

The outcome of this challenge could reshape the competitive landscape for web browsers and set a precedent for how the Digital Markets Act (DMA) is enforced across other tech giants. Should the European Commission rule in favor of including Microsoft's Edge under the DMA's scope, it would not only level the playing field for independent browser developers but could also prompt further scrutiny of other tech ecosystems that bundle default apps and services.

This ruling would likely compel Microsoft to adjust its practices, possibly mandating the inclusion of a browser choice screen on Windows, similar to what is required on mobile platforms. Additionally, it may lead to stricter regulations on how default software is pre-installed and how competing services are portrayed to users.

For other tech companies like Apple, Google, and Amazon, the case could serve as a cautionary signal that their integration of core services, such as browsers, voice assistants, or app stores, may face similar challenges under the DMA's anti-gatekeeping rules. The broader implications of such a ruling would reinforce the EU's commitment to fostering competition by ensuring that consumers have easy access to a range of independent software options without undue influence from dominant platforms.

As the Commission continues to address these issues, the outcome of this case could redefine how default services are regulated across digital platforms, shaping the future of the internet economy in Europe and potentially beyond.