Nobody complains when a Linux distro bundles a browser with a default search engine set. People would 100% complain if the next Ubuntu update changed the default search engine on an already installed browser from a 3rd-party source. That would not be OK.
You're looking at this from a pure business perspective and skipping over the more basic problems, which are:
- Software in general shouldn't change/reset user preferences without permission.
- Software updates should be consistent and predictable. Updating one program should not change settings in an unrelated program. Updates should not conditionally decide whether or not to install unrelated programs based on non-transparent reasoning.[0]
- Browser extensions should not sneakily change the mechanisms for how preferences are set.[1] Sneakily forcing the user to know that they need to update the extension settings instead of their browser settings is a user-hostile UX antipattern.
It's not about Microsoft or Google's rights, it's about the users' rights, and about building a sensible UX that works for real users. As a user, I believe strongly that my word processor should not be messing with my browser settings. I would feel the exact same way if a Linux install of LibreOffice changed my default search in Chrome to DuckDuckGo.
[0]: > New installations of Office 365 ProPlus and updated installs will include the extension, as long as the default search engine in Chrome is not set to Bing.
[1]: > Office users will also be able to disable Bing as the default search engine through the extension’s settings.