Veteran browser maker Opera has taken a significant step by filing a complaint with Brazil’s Administrative Council for Economic Defense (CADE) against Microsoft, citing alleged anti-competitive practices that favor its Edge browser within the Windows ecosystem.
Allegations of Anti-Competitive Behavior
The crux of Opera’s complaint revolves around what it describes as “all-or-nothing” bundled rebates that compel PC manufacturers to designate Edge as the exclusive pre-installed default browser. Furthermore, Opera accuses Microsoft of employing “dark pattern tactics,” which include disregarding users’ default browser selections in certain situations and restricting users from switching away from the default browser on devices operating in Windows “S mode.”
Windows S mode is a streamlined version of the operating system that only permits applications from the Microsoft Store, with Edge serving as the designated browsing tool. This mode is available exclusively on the Home edition of Windows 11. Users do have the option to switch out of S mode, unless their organization imposes restrictions. However, Microsoft clarifies that this transition is irreversible; once users opt out, they must continue with the standard version of Windows 11.
In the Brazilian market, where Opera holds a notable presence, the company’s market share has seen a slight decline in recent months, currently resting at 6.78 percent. In contrast, Edge commands a market share of 11.52 percent, while Chrome dominates with an impressive 74.95 percent. On a global scale, Opera’s market share stands at 2.65 percent.
This situation evokes memories of the browser choice screen that Microsoft was mandated to implement over a decade ago, following complaints regarding Internet Explorer’s market dominance. Aaron McParlan, General Counsel at Opera, emphasized the need for a similar solution today, stating, “Opera believes that Microsoft should, among other things, show a browser choice screen, just as it has done in previous years in the European Union.” He advocates for a user-friendly and unbiased format that includes all major PC browsers available in Brazil.
Focus on Fair Competition
While Edge does not hold the same level of dominance that Internet Explorer once did, the current landscape is largely ruled by Google’s Chrome. When questioned about why Opera’s complaint does not also target Chrome, McParlan clarified, “This case is not about Chrome. It is about ensuring free and fair competition on Windows PCs.” He further asserted that Microsoft’s dominance in the operating system market allows it to grant Edge an unfair advantage, stating, “Unless Microsoft is made to change its ways, Edge’s share will continue to increase for reasons disconnected from product quality and user preferences.”
Opera’s grievances extend beyond Brazil; in July 2024, the company filed an appeal with the EU General Court, seeking to annul the European Commission’s decision not to classify Microsoft Edge as a gatekeeper under the Digital Markets Act (DMA). A successful appeal could compel Microsoft to implement a browser choice screen on all Windows devices.
McParlan hinted at broader implications for the industry, noting, “Mobile and other platforms raise separate issues that may call for different solutions.” As for Microsoft’s response to Opera’s complaint, the company has yet to provide a comment. McParlan remarked, “Opera prefers not to comment on such elements of an ongoing case.” Observations from recent experiences with new Surface devices reveal a persistent push within the operating system to encourage users to remain with Edge, highlighting the ongoing nature of this competitive landscape.
