When Microsoft releases Windows 7 to public, it is going to release the OS without any browser for European users to fulfill their wish of not having Internet Explorer in the new version of Windows. They claim of security and other issues with the usage of IE, and so Microsoft would sell the Windows 7 OS without any other alternative browser too, leaving it on the users to download any browser of their choice.

Accd to Microsoft,

“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”

Still, Microsoft would be giving IE8 separately for users who didn’t have any wish of a browserless windows platform.
Firefox is a favorite browser in Europe, although it holds 31.1% share against 59.5% share of IE(fact being preinstalled IE in every Windows computer).

There are 2 different versions coming out for Europe users -
Windows 7 “E” – The Windows 7 modified version without the Internet Explorer browser
Windows 7 “N” – The Windows 7 modified version without the Windows Media player, apart from IE removal.

Microsoft is still trying to make users take advantage of IE and windows media player, by providing free IE8 packs.