UPDATE 1-Opera says Microsoft EU browser offer 'not enough'

* Opera says browser move would not restore competition

* Says Microsoft's dominant position would prevail

* EU says never asked MSFT to ship OS without browsers

* EU will examine conditions of Windows 7 rollout

(Adds background, Commission official, Opera shares)

By Tarmo Virki, European technology correspondent

HELSINKI, June 12 (Reuters) - Norwegian browser maker Opera ASA (OPERA.OL) said on Friday that Microsoft's (MSFT.O) plan to ship its Windows operating system in Europe without its Internet Explorer web browser was not enough to restore competition.

On Thursday the world's top software maker Microsoft, countering pressure from European regulators, said it plans to ship the newest version of Windows in Europe without its Internet Explorer web browser. [ID:nN11506625]

"I don't think what Microsoft announced is going to restore competition," Opera's Chief Technology Officer Hakon Wium Lie told Reuters.

"I don't think its going to be enough, I don't think it will get them off the hook," he said.

Shares in Opera (OPERA.OL) leapt more than 6 percent to a three-year high on the news of Microsoft's plans and expectations for an upcoming announcement from the company, an analyst said.

Microsoft's abrupt reversal comes shortly before the European Commission is due to rule on antitrust charges brought against the company in January, claiming that it abuses its dominant position by bundling its Explorer browser, shielding it from head-to-head competition with rival products.

EU WATCHDOG

Until now, Microsoft has claimed that the browser was an integral part of the operating system and should not be pulled out, but it now plans to do that for a European version of Windows 7, due to be rolled out later this year.

A European Commission official said the EU watchdog will examine the conditions under which Microsoft will ship Windows 7 without browsers to manufacturers and suppliers, warning that the Commission will find out if there are any conditions attached.