In response to the EU's Anti-trust investigation, Microsoft has announced that it will ship Windows 7 in Europe [Windows 7 E] without Internet Explorer.

Microsoft has always insisted that IE could not be separated from Windows, but now it is possible?

Further - "regulators said that the move seems a step backward in the retail software arena, but said it could be more positive in the new PC market, which is how 95 percent of consumers get a new version of Windows."..."the Commission had suggested to Microsoft that consumers be provided with a choice of Web browsers"..Ina Fried, Cnet news

"Publicly, at least, Microsoft hasn't gone into that level of detail on what will be removed from the European versions. It's clear that it will be more than just the logo on the desktop, but the distinction between Windows and Internet Explorer functionalities under the hood of the operating system has been a subject of intense debate in the past."

"The E versions of Windows 7 will include all the features and functionality of Windows 7 in the rest of the world, other than browsing with Internet Explorer," Microsoft's Heiner writes. He adds that the European versions "will continue to provide all of the underlying platform functionality of the operating system -- applications designed for Windows will run just as well on an E version as on other versions of Windows 7." ... Todd Bishop, TechFlash

A comprehensive writeup on the subject at Groklaw.net

Opera and Mozilla unimpressed by IE unbundling plans

"Opera's chief technology officer, Hakon Wium Lie, said that he was "not impressed at all" by the latest proposal from Microsoft, which would let computer manufacturers choose which browser or browsers to include on new Windows 7 PCs.

"If this had happened in 1997 when the competition case was first being heard in the US, maybe it would have helped in creating a level playing field," Lie said.

"But this is too little, too late. It won't restore competition in the browser market.""
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"It's impossible to evaluate what this means unless and until Microsoft describes, completely and with specificity, all the incentives and disincentives applicable to Windows OEMs," John Lilly, chief executive of Mozilla Corporation, said in an email statement.

"Without this it's impossible to tell if Microsoft is giving something with one hand and taking it away with the other, and more to the point, it's impossible to tell whether this does anything more than change the technical installation process of the OEMs and make life more difficult for people upgrading to Windows 7.""

Source: iTNews

EU Antitrust: MEMO/09/352 Date: 24/07/2009
http://europa.eu/rapid/pressReleasesAction...;guiLanguage=en

The European Commission can confirm that Microsoft has proposed a consumer ballot screen as a solution to the pending antitrust case about the tying of Microsoft Internet Explorer web browser with Windows. This followed extensive discussions with the Commission which centred on a remedy outlined in the January 2009 Statement of Objections (see MEMO/09/15) whereby consumers would be shown a "ballot screen" from which they could – if they wished - easily install competing web browsers, set one of those browsers as a default, and disable Internet Explorer.

Under the proposal, Windows 7 would include Internet Explorer, but the proposal recognises the principle that consumers should be given a free and effective choice of web browser, and sets out a means – the ballot screen - by which Microsoft believes that can be achieved. In addition OEMs would be able to install competing web browsers, set those as default and disable Internet Explorer should they so wish. The Commission welcomes this proposal, and will now investigate its practical effectiveness in terms of ensuring genuine consumer choice.

Microsoft has also made proposals in relation to disclosures of interoperability information that would improve the interoperability between third party products and Windows and Windows Server. Again, these proposals require further investigation before the Commission reaches any conclusion as to the next steps.

Microsoft's proposals will be published in full on its website.

The Commission has no further comment at this stage.
The Commission is currently considering Microsoft’s reply, and additional evidence in the case. The investigation is continuing.