Microsoft is in the right.
Sorry but the EC are a bunch of fucking idiots on this.
They ask for more browsers to be bundled with Windows but how do you choose which? If you keep it to Firefox, Chrome, Safari, Opera, IE there's still alot of smaller browsers left out. If you don't include those then they will simply lose all hope of gaining ground on the "big" browsers who are then placed in a position of having an unfair advantage.
Then what about the fact Mac OSX, Linux and UNIX flavours don't supply browser choice? Why is it only anti-competitive if Microsoft forces their browser on someone but not Apple?
Why do we even care about this when IE is losing ground anyway even though it's bundled and competition is rife?
If the EC wants perfect fairness then removing browsers altogether from Windows, Mac OS X, Linux, Unix is the only way to do it, but now that Microsoft is doing this they've realised it's a pretty stupid idea.