The European Commission of Competition that is responsible for the Windows N (no media player) editions can claim another victory for competition today with Microsoft announcing Windows 7 only in the European union will not ship with Internet Explorer 8.  In fact, it will not ship with any Internet browser.  Computer manufacturers will have the option to install IE8 and/or any other browser.  Retail versions may include a copy of IE8 on a CD so the user can optionally install the browser. 

Is it just me or does this decision sound like it will hurt consumers more than help competition?

From the Microsoft Legal Blog:

Windows 7 will be offered in Europe in all of the versions that will be available here in the United States, both 32- and 64-bit, with an “E” at the end of the product name (for instance, Windows 7 Home Premium E).  The E versions of Windows 7 will ship at the same time as Windows 7 ships in the rest of the world, and they will be available in 23 European languages.

What does this mean for European consumers?  The E versions of Windows 7 will include all the features and functionality of Windows 7 in the rest of the world, other than browsing with Internet Explorer.  Computer manufacturers will be able to add any browser they want to their Windows 7 machines, including Internet Explorer, so European consumers who purchase new PCs will be able to access the Internet without any problem.  Consumers will also be able to add any Web browser to their PCs, to supplement or replace the browsers preinstalled by their computer manufacturer. 

Most importantly, the E versions of Windows 7 will continue to provide all of the underlying platform functionality of the operating system—applications designed for Windows will run just as well on an E version as on other versions of Windows 7. 

Read More on Microsoft's Legal Blog