Mozilla has accused Microsoft of using its dominance in the Windows operating system to marginalize competitors in the AI sector, particularly through the promotion of its Copilot feature. Mozilla claims that misleading update mechanisms are being used to push Copilot onto users and that system settings are being adjusted to hinder the performance of alternative browsers like Firefox. This situation is reminiscent of the 1990s browser wars when Microsoft bundled Internet Explorer with Windows to eliminate competition.
In July 2025, Opera filed a formal antitrust complaint in Brazil against Microsoft, leading to an investigation into whether Microsoft was coercing hardware manufacturers to bundle Edge exclusively. A ruling against Microsoft could require a separation between the operating system and AI services.
Microsoft's current strategy aims to control the AI inference layer, with each interaction through Copilot representing valuable data and monetization opportunities. Reports indicate that Microsoft is removing Copilot branding from standalone applications to further integrate it into the operating system.
Despite Edge being the third most popular browser, Microsoft's tactics suggest a focus on securing AI infrastructure rather than just competing for browser market share. Regulatory scrutiny may increase due to ongoing antitrust challenges related to Microsoft's OpenAI investment and cloud AI bundling practices. The development of OEM relationships and potential resistance to Microsoft's requirements could significantly impact its integration strategy.