It looks like the EU have had their way and Windows 7 will ship without a browser in some editions. This means large OEMs can have some choice in which browser they ship with PCs.
It will be interesting to see how many of the sans-browser editions are sold, as I suspect many people will want to use IE (or at least have the option to). You can read more at CNET.Reacting to antitrust concerns expressed by European regulators, Microsoft plans to offer a version in Europe that has the browser removed. Computer makers would then have the option to add the browser back in, ship another browser or ship multiple browsers, according to a confidential memo that was sent to PC makers and seen by CNET News.
"To ensure that Microsoft is in compliance with European law, Microsoft will be releasing a separate version of Windows 7 for distribution in Europe that will not include Windows Internet Explorer," the software maker said in the memo. "Microsoft will offer IE8 separately and free of charge and will make it easy and convenient for PC manufacturers to preinstall IE 8 on Windows 7 machines in Europe if they so choose. PC manufacturers may choose to install an alternative browser instead of IE 8, and has always been the case, they may install multiple browsers if they wish."
Microsoft confirmed the authenticity of the document but declined to comment further.