Readers of this space may recall that about two weeks ago I wrote about an intriguing turn of events for Microsoft Corp. (MSFT). Pursuant to an agreement with the European Commission, Microsoft has made available to it's new European customers a web page which provides those customers download utilities for a choice of twelve different web browser applications. As I suggested then, It appears that the reign of Windows Internet Explorer may come to a screeching halt.

According to a report from BBC News, a web browsing application known as Opera is knocking Internet Explorer back on it's heels in Europe. Opera Software of Norway states that downloads of it's web browsing software have doubled in some countries since the Microsoft provided selection page came on line. Anywhere from 60% to 75% of the new download requests for Opera have come via the new Microsoft provided service.

Instigated by an agreement negotiated between the European Commission (EC) and Microsoft Corp. (MSFT), a new browser selection utility has just become available. Although the browser choice software is intended mainly to be distributed through the Windows update system familiar to Microsoft's Internet Explorer (IE) users, it is also available online for anyone to access.

It is reported that Microsoft IE currently holds approximately 62% of browser market share. That is a powerful position for the company to be in when considering that web browsers are absolutely essential pieces of software. That is, in part, why the EC put pressure on Microsoft to open up the playing field to lesser known browser utilities. With their demands, European regulators essentially cut Microsoft's exclusive IE umbilical cord in July of 2009.

Users of Microsoft (NASDAQ: MSFT) Windows may be surprised to learn that they have a third alternative for an internet browser beyond Internet Explorer and Mozilla Firefox. The Opera browser has been around since 1994, a product of the Norwegian telecom industry, which claims to be an equal to the big two in speed and security. However, its use has been minuscule, around 1% by some estimates.

Now, no doubt emboldened by the recent judgment of a European Union court that found Microsoft guilty of antitrust violations for bundling its software, the Opera people have filed their own complaint with the European Commission. Opera claims that by bundling Internet Explorer with Windows, Microsoft has stifled competition. This advantage comes from both the ease with which Windows users can access IE, as well as due to its prevalence, the degree to which other software is written specifically to work with IE.

The company asks the court to require Microsoft to either exclude IE from Windows packages or include other browsers with equal access. It also asks the court to force MS to "follow fundamental and open Web standards" with other developers, rather than its own, which in Opera's words, "create a de facto standard" that results in less secure internet browsing.

Look for more companies to jump on this bandwagon while Microsoft is still vulnerable in the EU.

Microsoft's venerable web browser, Internet Explorer, has been derided in the web universe for so long that it makes sense for the competition to have snuck in and stolen away some of the software kingpin's marketshare.

While Microsoft's IE web browser still has the largest marketshare of any web browser in the world, it has lost quite a few points in recent years to Mozilla's Firefox web browser, which many believe has much better security features, as well as an entire universe of developers that make "extensions" to the actual browser -- letting the customer customize their web experience as only they can.

And how about Opera, the stalwart Finnish company that many think is the best web browser on the planet? Opera used to charge for its web browser but then joined the competition (IE and Firefox) in giving it away for free.

Would Microsoft Corporation (NASDAQ:MSFT) have been better served by acquiring Opera a few years ago? By doing so, it would have effectively taken a competitor out of the market, and also offered its millions of Windows users a much better web experience than what they already endure using IE. Sure, anti-competitive folks might have had a problem with Microsoft buying a web browser maker with a tiny marketshare percentage, but if serving customers the best possible product was the goal, perhaps Microsoft should have bought Opera.

[Disclosure: I own MSFT shares as of 12-21-06]

In a bid to push its new suite of integrated applications and tools, Microsoft is planning its initial deployment of Internet Explorer 7.0 via Microsoft's Automatic Updates Service.

So as to not cause another WGA (Windows Genuine Advantage) debacle, whereby downloaded 'Automatic Updates' were functioning beyond the expected scope of users ('dialing' back to Microsoft Servers automatically); IE 7.0 will be designated as a High Priority download, but users will be able to opt-out of downloading the product.

While the opt-out option is certainly a nod to user choice advocates, distribution of IE 7.0 at all via the Automatic Updates channel is in question. Automatic Updates should remain a primary channel for security updates only.

Distribution of a product should be initiated through a product distribution channel, either through standard retail or Microsoft's Download Center.

Of course from a business standpoint, this is a very logical move for Microsoft, taking a play from classic marketing textbooks. Have customers 'opt-out' rather than 'opt-in'. That way, by default you are capturing market share, and only by effort of the end user are you losing market share.

With alternative OS options emerging in lieu of the upcoming Windows Vista (ie. consumer and commercial flavored linux releases) and market penetration of the Macintosh platform, it is imperative that Microsoft hook users onto individual Microsoft applications which through integration with other MS products will synergistically push the Microsoft platform.

In the standalone browser market, IE 7.0 will launch before Firefox 2.0, though Opera 9.0 has launched and has gathered a relatively small but loyal following.