The EU's 'Nationalization by Regulation'

Subject: The EU's 'Nationalization by Regulation' Wed Jun 24, 2009 1:09 am

Say what you will about President Obama's effective nationalization of General Motors, Chrysler, and AIG, at least his industrial policy is more open than the European Union's. While Washington is taking over failing companies by pouring billions of taxpayer dollars into them, Brussels -- pushed by competing businesses -- is slowly but surely nationalizing successful companies merely by regulating them.

The latest example of this "stealth nationalization" comes courtesy of the European Commission's long-running feud with Microsoft over Internet browser software. Competitors like Mozilla Firefox and Opera have long complained that Microsoft's ability to pre-load its own Internet Explorer as part of the Windows operating system gave Explorer an unfair advantage.

With regulatory proceedings on these charges still pending before the European Commission, Microsoft announced earlier this month it would release its new version of Windows in Europe without a browser.

A browserless Windows once was the Nirvana of Microsoft foes. But instead of throwing a party, competing browser makers now demand that Microsoft redesign its operating system in yet another way. They want a "ballot screen" that requires consumers to select from a set of browsers -- their browsers -- when a new computer first boots up. In other words, they are urging the EU to impose its judgment on the fundamental design of Windows itself.

If the EU accedes to this demand and forces Microsoft to redesign Windows yet again, it will be entering into truly novel -- and dangerous -- territory.

More: http://online.wsj.com/article/SB124571871033339547.html

The EU's 'Nationalization by Regulation'

The EU's 'Nationalization by Regulation'

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