European Commission has accepted the legally binding commitments offered by Microsoft that allows European users to choose their choice of web browser with Windows operating system.

The commitments address the commission’s concerns about Microsoft bundling internet explorer with its operating system in breach of EU rules on abuse of a dominant market position.

Competition commissioner Neelie Kroes, said: “Millions of European consumers will benefit from this decision by having a free choice about which web browser they use. Such choice will not only serve to improve people’s experience of the internet now but also act as an incentive for web browser companies to innovate and offer people better browsers in the future.

The commission’s preliminary view was that competition was distorted by Microsoft tying internet explorer to windows operating system, since it offered Microsoft an artificial distribution advantage which is not related to merit of its product on more than 90% of personal computers.

Under the commitments approved by the commission, Microsoft will make available for five years in the European Economic Area a choice screen, enabling users of Windows XP, Windows Vista and Windows 7 to choose their choice of web browsers in addition to or instead of Microsoft’s IE.

The commission said that the commitments will ensure competition on the merits and allows consumers to benefit from technical developments both on the web browser market and on related markets such as web-based applications.

Separately, Microsoft has made public commitments that covers interoperability with its products such as Windows, Windows Server, Office, Exchange and SharePoint with other third party products.

The choice screen will take the form of a windows update and updates will be installed automatically for users who have opted for automatic installation. It will be available from mid-March 2010.