Microsoft yesterday moved to reinforce its position in mobile software by buying Danger, a company that makes web-browsing, instant messaging and other software for mobile handsets.

The deal comes as Microsoft faces increasing competition in the mobile market from rivals including Google and Apple. "The addition of Danger serves as a perfect complement to our existing software and services, and also strengthens our dedication to improving mobile experiences centred around individuals and what they like," said Robbie Bach, head of Microsoft's entertainment and devices group.