In a report by ZDNet, Microsoft and Dell have arrived at an agreement that new Dell computers will be shipped with the Live search bar preinstalled -- instead of Google's.
This is really big news for Microsoft (and as one suggests, even for Google shareholders). Having a preinstalled brand is a big deal, and with Microsoft being the preinstalled brand, this is huge for them.
It's possible, though, that this implementation (which hasn't been confirmed by Microsoft OR Dell), may be a problem in Europe.
The (potential) problem for DELL and Microsoft is that in the EU at least it's illegal to use a (de-facto) monopoly to gain market advantage in other areas.
But while Microsoft isn't a monopoly in terms of search, perhaps that won't necessarily be an issue. Of course, we'll see how this plays out when the companies confirm the partnership.
Forum discussion continues at WebmasterWorld.