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Microsoft’s release of the IE 7 Beta 2
version was seen by analysts as the company’s response to
the growing competition from other browsers like Firefox.
The Firefox web browser was an open source browser created
by the Mozilla Foundation4 . It was officially
released in November 2004.
Due to the security concerns over its own browser and the
growing popularity of Firefox, Microsoft’s IE browser’s
market share declined from 95.5% in June 2004 to 84.7% in
March 2006. Firefox’s share in March 2006 was 10.05%.
Analysts pointed out that Microsoft was keen to stem the
decline in its market share and to counter the stiff
competition from Firefox. Analyst Gene Munster said, “The
big point is that IE’s been losing market share to Mozilla’s
Firefox. Now Microsoft is trying to catch up and regain user
loyalty from people who have embraced Firefox’s simple and
more secure format.” 5 |
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Analysts also pointed out that Microsoft’s future domination of the software
business was under threat from the renewed enthusiasm for the open source
movement and the rise of new Internet companies like Google Inc. (Google).
In fact, Google, the world’s most popular search engine, had teamed up with
Firefox to announce that it would pay websites US$ 1 for each referred
download of the Firefox browser it received through the Google toolbar.
Moreover, Google was the default home page of the Firefox and Opera web
browsers. Google had also tied up with Dell Computers (Dell), the world’s
leading PC manufacturer, to have its search applications incorporated in
Dell’s machines.
With the release of the IE 7 Beta 2, the war between Google and Microsoft
intensified. Google complained to the US Department of Justice and the
European Union that Microsoft’s move to use its own MSN search as the
default web browser was ‘anti-competitive’.
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[4] Mozilla Foundation was formed by Netscape Corporation, a former browser
in 1998. (How can a browser form a foundation? Should it be Netscape
Corporation or something like that? Also, isn’t the Netscape browser still
available?)
[5] Yuki Noguchi, “Microsoft tries for safer surfing,” www.TechNews.com,
April 26, 2006.
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