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Gateway Testifies To Microsoft's OEM Treatment

unconfused1 writes "Gateway testified yesterday about the incredible power that Microsoft wields over OEMs concerning Windows being shipped on every PC. It seems that if an OEM does not ship Windows on every PC they ship that they are severely penalized, and can have their license revoked."

625 comments

  1. No options in the cut throat pc market by brodiedreamyou.ca · · Score: 2, Redundant

    The article basically says that no pc company could consider breaking the agrement and not getting the $10 per copy discount. As far as i understood Microsoft cuts them off the discount if they are EVEN offering non MS solutions, not just dual boot situations scary

    1. Re:No options in the cut throat pc market by ichimunki · · Score: 2, Insightful

      Maybe if a few of the top PC-maker execs had some sort of backbone, this would have never happened. Of course, they're just giving th consumers what they wanted right? Glad I've never bought anything that wasn't either a used machine (as in "sans OS") or made by Apple. Next computer will either be a new Mac or completely home-built.

      --
      I do not have a signature
    2. Re:No options in the cut throat pc market by Anonymous Coward · · Score: 2, Interesting

      Actually the discount is way more than $10. Try $100 for XP Pro.

      The $10 was an extra "market development funds" refund that MS kicks back. It pays for the Windows logo you see in major OEM advertisments.

    3. Re:No options in the cut throat pc market by Hostile17 · · Score: 2

      Maybe if a few of the top PC-maker execs had some sort of backbone

      That sounds good in theory, but do you really think Dell or Gateway is going to get some "Backbone" when it would cost them millions, perhaps hundreds of millions of dollars a year. If they don't comply they are effectively giving thier competition a cost advantage. The Exective who successfully implements this, would be fired and the stockholder would probably sue the CEO for not maximizing profits. Oddly, only the smallest niche market players can afford to blow Microsoft off, because thier products cost more anyway.

      --
      Fascism should more properly be called corporatism, since it is the merger of state and corporate power - Benito Mussoli
    4. Re:No options in the cut throat pc market by Anonymous Coward · · Score: 0

      Hey, yeah, buying an Apple is a really wonderful way to avoid shoring up an inefficient monopoly that screws their customers!

    5. Re:No options in the cut throat pc market by Anonymous Coward · · Score: 0

      Maybe if a few of the top PC-maker execs had some sort of backbone, this would have never happened. Of course, they're just giving th consumers what they wanted right?

      These guys have a complete love-hate relationship with Microsoft. On one hand, they don't really appreciate getting fucked, and on the other they are spooging all over the place whenever MS ships a new product and they can move some boxes.

      Most smart industries always get at least 2 suppliers for each major component in their product. The PC industry is not smart. (Well, they were smart enough not to get Abner Louima'd with IBM and OS/2, and they begged Apple for a licence and didn't get one, but for the last decade or so, they've been good little bottoms.)

      Maybe if they understood the concept of "R&D" they'd be getting Linux into shape so they'd have an alternative a few years down the road

    6. Re:No options in the cut throat pc market by Anonymous Coward · · Score: 0

      So, basically, there's a $100 discount, which really matters.

      And there's this little $10 discount that Microsoft might have used as a threat.

      And the News Media can't tell the difference, so they report a 'major threat' issued by Microsoft.

      My understanding from what I've read is that Microsoft never carried through on any of their threats related to the IE bundling issue. Push came to shove and companies did what they wanted. Microsoft never retaliated. They talked tough, then they backed down.

      End of issue.

    7. Re:No options in the cut throat pc market by geekoid · · Score: 2

      It would be nice if the big players got together and told MS there mad as hell and won't take it anymore.
      That would give consumers options. like heres computer A and Cmputer B. there identical. Computer A costs 999 dollars,comes with a free OS.
      Computer B costs 1199, comes with windows.
      Now people are actually thinking about buying windows.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    8. Re:No options in the cut throat pc market by ichimunki · · Score: 1, Troll

      do you really think Dell or Gateway is going to get some "Backbone". I didn't say "get some", I said "had some". Past tense. As in they've made their beds, let them lay in them.

      the stockholder would probably sue the CEO for not maximizing profits. For all the talk I hear about "they're just doing their legal duty to the shareholders" on Slashdot, how many real court cases do you see where the Board is held liable when a company fails? None. Except in cases of plain fraud and obvious illegal behavior. Shareholders buy stock, they vote their proxies, and they take their chances. That's how the game works. Don't like it? Buy bonds. This is a lame argument and I'm tired of hearing it.

      So yes, I realize this is a problem now. I'm glad the Gateway guy was willing to testify. But really, if you consumers aren't going to do something real about it, what difference does it make? Microsoft used to be a rinky-dink little firm that couldn't monopolize its way out of a paper bag. In less than 25 years they did this, how? Giving people the software they asked for.

      Since when are these OEM contracts the taxpayers' (and therefore the government's) problem? If these OEMs couldn't figure out what they were risking by giving favor to a single vendor, tough on them-- where's the shareholder lawsuits alleging harm for such incompetent negligence? There ain't none. Why? Because no one has shown how this harms consumers.

      Anyway don't most people love Microsoft software, even in the face of good alternatives like Mac OS and Linux (and previously stuff like OS/2-Warp/AmigaOS/BeOS/etc)? So if an OEM doesn't like it, let them get out of the Microsoft game. If any serious hardware maker spent some time fine-tuning a Linux distro for their hardware and a set of standard peripherals they could be selling top of the line systems quickly, with no allegiance to Redmond required. If people don't want such Linux systems, then I guess the OEMs are stuck. Maybe the OEMs should have had some foresight. It's not like this happened slowly, we're talking about a story less than 25 years in the making.

      If it can be shown that MS broke some actual laws, fine. So far, the evidence seems to favor an interpretation that they played really really hardball with OEMs. In fact, this testimony shores that up. And that's not my problem. That's just business.

      --
      I do not have a signature
    9. Re:No options in the cut throat pc market by mvdwege · · Score: 2
      Glad I've never bought anything that wasn't either a used machine (as in "sans OS") or made by Apple.

      Euhm...

      What was the default browser on the Mac again?

      Mart
      --
      "I know I will be modded down for this": where's the option '-1, Asking for it'?
    10. Re:No options in the cut throat pc market by Anonymous Coward · · Score: 1, Funny

      Hi.

      My name is VERSION9.DLL and I'm a time travel from the distant future. Would you please do everyone in 2271 a BIG favor and DELETE Mr Gates?

      You can't imagine what he does next.

      BRB, have to cloy the Triscuit and degen the loop moderator.

    11. Re:No options in the cut throat pc market by Anonymous Coward · · Score: 1, Interesting

      I would agree, except that the people who have offered systems with Linux pre-installed or a dual-boot situation have always charged just as much, if not more, for these systems (think Dell). Maybe the cost increase is due to the fact that they are losing out on the M$ kick-backs, and they have to make it up in the sale. Then again, maybe they are putting the retail-boxed version of a Linux distro on the machines (think Dell) and are having to pass on this cost (around $60) to consumers. I love and use Linux, and it would be great to see pre-installed systems selling. However, I'm not going to pay as much for Computer A (Linux) as I would for Computer B (Windoze) when I know that they could just install the downloadable ISOs. I would be willing to pay a small fee for their installation and driver configuration troubles, though.

    12. Re:No options in the cut throat pc market by Anonymous Coward · · Score: 0

      Consumers buy Computer A because it's cheaper. Find that it's running some cheap knock-off of Windows that doesn't run their software. Consumer returns the box, and buy a $1050 box from another OEM running Windows. Return costs plus the higher price of their winboxes put the OEM out of business.

      You can't solve the Windows desktop problem by dictating production. Get something that people proactively want out first.

    13. Re:No options in the cut throat pc market by ichimunki · · Score: 1

      I don't see a single application as a reason to avoid Apple. Maybe if someone else like Opera or Netscape wants to make a free, high-quality browser available to Apple to put on all new Macs, then Apple will change. As it is, the quality of IE for Mac serves as a good advertisement for Microsoft and not so much as a crippling of the platform. This is a non-issue.

      --
      I do not have a signature
    14. Re:No options in the cut throat pc market by bleuchat · · Score: 1

      No, there is a discount ($100) that the PC maker pays for the Windows license. This saves them money.

      Then there is a $10, lets say, "rebate" for each installation of Windows to pay for marketing.

      Yes, it's only $10, but imagine selling thousands of computers a year. That's a big chunk of change.

      Get it?

    15. Re:No options in the cut throat pc market by arkanes · · Score: 2

      Using monopoly power to prevent anyone else from entering that competion is illegal - that's what at issue here. It's not about how they got the monopoly, or if the OEMs want to back out now, or any of that. It's pure and simple: Did MS, once they gained an OS monopoly, use that power to prevent people from bringing competing products to market?

    16. Re:No options in the cut throat pc market by lunky · · Score: 1

      Oddly, only the smallest niche market players can afford to blow Microsoft off, because thier products cost more anyway.

      I read here last week on slashdot about Walmart selling pc's w/o preloaded OS's? Walmart's customers do not represent a niche market.

      --
      lunky> c++; lunky> do{;}
    17. Re:No options in the cut throat pc market by Znork · · Score: 2

      It has already been shown that MS broke some actual laws. The evidence currently hashed out in court is mostly to show the judge that Microsoft still causes consumer harm, and that the remedies imposed by the court should deal with an uncooperative corporate entity that does not recognize they've broken the law and has no intention of stopping.

    18. Re:No options in the cut throat pc market by mvdwege · · Score: 2

      You missed the point. Completely.

      IE is there as the default browser because Apple was strongarmed by Microsoft to put it there. Your original comment made it seem as if Apple was free of Microsoft coercion. The existence of IE as the default browser on the Mac proves the opposite.

      Mart
      --
      "I know I will be modded down for this": where's the option '-1, Asking for it'?
    19. Re:No options in the cut throat pc market by JamesOfTheDesert · · Score: 2
      That sounds good in theory, but do you really think Dell or Gateway is going to get some "Backbone" when it would cost them millions, perhaps hundreds of millions of dollars a year.

      So, lets see: the current situation allows them to make millions, perhaps hundreds of millions of dollars a year, yet it's a problem.

      At some point these people had an offer from Microsoft, and had to decide if they were better off accepting it. They did, and they're making money, and would make less money without the deal, but Microsoft is the bad guy.

      The problem is these folks want to eat their cake, and have it too.

      --

      Java is the blue pill
      Choose the red pill
    20. Re:No options in the cut throat pc market by hyphz · · Score: 1

      > So yes, I realize this is a problem now. I'm
      > glad the Gateway guy was willing to testify.
      > But really, if you consumers aren't going to do
      > something real about it, what difference does
      > it make? Microsoft used to be a rinky-dink
      > little firm that couldn't monopolize its way
      > out of a paper bag. In less than 25 years they
      > did this, how? Giving people the software they
      > asked for.

      Umm, not quite.
      Microsoft started getting big because they sold MS-DOS. There was no competition at that point; when the first PCs came out, there was no choice of operating systems, you got MS-DOS, and you got it because IBM had (apparantly randomly) asked Microsoft to write their OS for them.
      And this was the start of the OS spiral: people wrote apps for MS-DOS because it was the only one available, so then people bought MS-DOS because it ran the apps, so then people wrote for MS-DOS because it had the users.
      There were some competitors, like DR-DOS and similar, and they actually worked reasonably well. The only reason they weren't popular was that the majority of users did and do have an "I'm alright jack" attitude to their preinstalled OS.

      > Since when are these OEM contracts the
      > taxpayers' (and therefore the government's)
      > problem? If these OEMs couldn't figure out what
      > they were risking by giving favor to a single
      > vendor, tough on them--

      There was never really a choice. Just like Windows, you *had* to have MS-DOS, and that wasn't because it was best, it was because MS were the people who got send the prototype by IBM.

      > Anyway don't most people love Microsoft
      > software, even in the face of good alternatives
      > like Mac OS and Linux (and previously stuff
      > like OS/2-Warp/AmigaOS/BeOS/etc)?

      The users want apps; the app coders want users. This has already been debated in the courts.

      > If people don't want such Linux systems, then I
      > guess the OEMs are stuck.

      People *do* want these Linux systems, but not *so many* people want them. Yes, the majority want Windows, but that's no reason why the minority who want Linux shouldn't get it, and especially no reason why the OEMs who want to cater for that minority should be allowed to.

    21. Re:No options in the cut throat pc market by Anonymous Coward · · Score: 1, Interesting

      What if gateway let you sell Windows BACK to it?

      Let us say that I buy a Dell PC for $500, and they pay me $100 for the copy of Windows and Office that came with my computer... Then Gateway could use that copy of Windows/Office for another computer and I could put FreeBSD on this nice computer i paid $400 for?

    22. Re:No options in the cut throat pc market by CrazyDuke · · Score: 1

      MS would cry fowl. Users can not sell OEM copies of their software. There was an article on slashdot a while back about MS killing ebay auctions over it.

      --
      Any sufficiently advanced influence is indistinguishable from control.
    23. Re:No options in the cut throat pc market by lynx_user_abroad · · Score: 2
      It would be nice if the big players got together and told MS there mad as hell and won't take it anymore.

      You don't want that. That would be racketeering, and it's illegal.

      And at any rate, businesses shouldn't have to resort to illegal behavior to counter illegal behavior.

      The correct response it so fix the problem (the Microsoft monopoly).

      --

      The thing about things we don't know is we often don't know we don't know them.

    24. Re:No options in the cut throat pc market by gewalker · · Score: 3, Informative

      Umm, not quite -- part 2

      When the IBM-PC was introduced there were 3 operating systems available. PC-DOS was about $50 and got the vast majority of the installs. UCSD P-System and a updated CP/M knockoff from Digital reseach were also available, but they both cost over twice as much, not surprisingly PC-DOS won. I used the CP/M variant once, but never saw the UCSD version other than in a bundled runtime with the game Wizardry.

      IBM did not make a random decision. MS had established itself as viable in their minds with their CP/M BASIC and AppleSoft products. They made the right promises (and fulfilled them), offered IBM the right price & customer service. At this point in time, IBM was widely regarded as evil incarnate, not MS. MS was a scrappy bit-player, no more. IBM thought that the IBM-PC would sell at most a few-hundred thousand machines over its lifetime, so they did not see it as worth their time to make the system or the O/S propriatary, which is also why they did not bind Microsoft from selling MS-DOS to competitors.

      DR-DOS was an eventual competitive MS-DOS clone, and yes, many people ignored it because it was not standard. However, MS also torpedoed it by releasing "fixes" to windows that gave warnings, or actual problems if you were not using the one true DOS.

    25. Re:No options in the cut throat pc market by Anonymous Coward · · Score: 0

      Innefecient? how so?

    26. Re:No options in the cut throat pc market by rusty+spoon · · Score: 1

      Market leaders, great products, massive customer loyalty - all lost to an inferior product over a relatively short space of time.

      "inefficient" doesn't begin to describe the absolute supidity of Apple over the last two decades.

    27. Re:No options in the cut throat pc market by drzhivago · · Score: 1

      What is funny about Apple using IE as the pre-loaded browser is that they default the homepage to apple.netscape.com!

      Greg

    28. Re:No options in the cut throat pc market by nelsonal · · Score: 2, Interesting

      I had to write a pretty large paper on the anti-trust trial for a class. Which meant that I had to read both the DOJ & MSFT's proposed findings of fact. In the DOJ's one of the stories was about IBM and Compaq, who both came close to losing their windows license. The Compaq part is detailed here, starting in section 203. Compaq started a marketing agreement with AOL at the height of the browser wars, after the threatend loss of their license they capitulated and were granted the lowest price for Windows of all OEMs.
      The IBM part is detailed starting in section 67. IBM didn't get a license untill 15 minues before windows 95's launch! Because they wanted to bundle smart suite. Before reading this I supported Microsoft in the trial, after reading about these two companies, I realized that they had been quite blatent in their monpolizing of whatever they wanted to get today.

      --
      Degaussing scares the bad magnetism out of the monitor and fills it with good karma.
    29. Re:No options in the cut throat pc market by Anonymous Coward · · Score: 0

      > Walmart's customers do not represent a niche market.

      Walmart's customers who want an unloaded PC are a niche market.

      Walmart gets away with this because they aren't primarily a PC vendor. MS tries to give them hell, they shrug and drop PCs from their lineup.

      Please name a PC industry company that can afford to do that.

    30. Re:No options in the cut throat pc market by bongpig · · Score: 1

      Is that why on buying a $3000 IBM netvista, with WINME installed, i was told i was not actually entitled to the software? Same again with my sisters computer with XP.... told she wasnt entitled to own the CD for the os installed in her system. A word of warning to Aussie Slashdotters, Dont buy PC's from Harvey Norman, you WILL be treated like s..t

    31. Re:No options in the cut throat pc market by Anonymous Coward · · Score: 0

      Suggestion:

      Instead of worrying about what MS might want or not want . . . why doesn't the DOJ just say, ". . . computer manufacturers cannot pre-install ANYTHING . . . ". At the same time, there should also be no co-branding, or rights to place icons/links, sold on any OS.

      Microsoft would lose the pre-installed foot-hold in the market. And, the hardware market would have to win out on the merit of standard hardware.

      Obviously, this favours Open-Source solutions. But, it also favours competition in general.

      A level playing field, is the best playing field.

    32. Re:No options in the cut throat pc market by mpe · · Score: 2

      It would be nice if the big players got together and told MS there mad as hell and won't take it anymore.

      That would probably involve forming some kind of pricing cartel. Which is just as illegal as the things Microsoft is up to.
      Problem is when the law isn't enforced breaking the law can end up the only option...

    33. Re:No options in the cut throat pc market by White+Roses · · Score: 1
      IE. But unlike on Windows, I can uninstall the bastard. Which is the point: I choose what is and is not on my computer, not some hack in Redmond.

      Call back when you can uninstall IE from XP, thanks.

      --
      Do not touch -Willie
  2. Not surprising by rayamor · · Score: 1, Insightful

    I'm not surprised, it's what a monopoly would do!

  3. This is why... by rmadmin · · Score: 1

    months ago I decided to boycott companies that did this. Infotel Distributing was my main distributor for quite a while (before I knew about price watch). After I found out about their 'MS on all machines' issue, I just stopped buying from them all togather.

    1. Re:This is why... by sphealey · · Score: 2
      After I found out about their 'MS on all machines' issue, I just stopped buying from them all togather.
      And how did you manage to find a vendor that did not do this? A local mom-n-pop shop once showed me their contract with Microsoft. It was full of restrictions and penalties of this nature. Probably more so than Gateway's, since the local shop had zero clout. It was strictly pay to play, and if we catch you breaking the agreement, you are out of business.

      Now, M$ never audited any of the mom-n-pops I dealt with, but the threat of an audit was more than enough to keep them in line.

      sPh

    2. Re:This is why... by ncc74656 · · Score: 2
      After I found out about their 'MS on all machines' issue, I just stopped buying from them all togather.

      And how did you manage to find a vendor that did not do this?

      I would think most screwdriver shops would do this...they're already using whatever processor, RAM, HD, etc. you specify, so the logical extension would be that you could specify the OS to be installed. I've bought parts for complete systems at PC Club and not had to pay the "MS tax" along with those parts. I've never had them assemble a system (I can do that myself), but I would think they'd build a "naked PC" if you asked.

      --
      20 January 2017: the End of an Error.
    3. Re:This is why... by Anonymous Coward · · Score: 0

      Time travel back about 7-10 years and most mom-n-pop shops were shipping computers sans OS (wink-wink). One guy told me I was nuts for actually demanding that he include the cost of DOS/Windows in his quote.

      In the local newsprint computer rags, MS runs ads listing the mom-n-pops that they've busted for piracy (nowdays bogo-holograms and the like).

      I have trouble feeling sorry for those guys -- they lose on economies of scale for a generic product, and trying to make that up by cutting out the OS cost just set themselves up for trouble with the man.

  4. Be Inc. by Anonymous Coward · · Score: 0

    This looks like it could be good news for Be Inc.'s upcoming trial with Microsoft.

  5. It happend to me! by Anonymous Coward · · Score: 1, Funny

    I installed windows 95,98,2000, and XP and deleted all of them, just to build up resistance.

  6. Dell by blues5150 · · Score: 4, Interesting

    I would love to see what Dell has to say about the OEM agreements with MS. After all they did support Linux for a little while. Now that seems to have gone by the waist-side. I also wonder what the reprecussions of Gateway speaking out against MS.

    --

    1. Re:Dell by billstr78 · · Score: 1

      It was a great thing when Dell offered Linux on thier business class workstations, great for everyone but Microsoft that is. They forced the Dell to cease and decist forcing them to only offer Windoze after they realized how much market share they could loose.

    2. Re:Dell by Carmody · · Score: 2, Funny

      This is what Dell has to say: "Dude, you're getting a blue screen."

      --
      God is real unless declared integer
    3. Re:Dell by mbourgon · · Score: 0, Redundant

      Waist-side? You mean "wayside".

      --
      "Sometimes a woman is a kind of religion, she can save your soul & set you free from all your sins" - Bad Examples
    4. Re:Dell by flewp · · Score: 2, Offtopic

      Uh dude, Dell shut down.

      --
      WWJD.... for a Klondike bar?
    5. Re:Dell by cscx · · Score: 1

      Dude, that's not even remotely funny.

    6. Re:Dell by lseltzer · · Score: 1

      Dell still does offer workstations with Linux you doofus. Did you just assume they didn't? http://www.dell.com/us/en/esg/topics/linux_003_pro ducts.htm

    7. Re:Dell by Anonymous Coward · · Score: 0

      "...gone to the waist-side."

      You mean, like developed a fat arse?

    8. Re:Dell by tomstdenis · · Score: 1

      Yeah, because linux is so cool aight.

      Tom

      --
      Someday, I'll have a real sig.
    9. Re:Dell by dcgaber · · Score: 5, Informative

      Dell has something to say on this matter. Read it here. Basically MS e-mails/memos released at the trial last week discussig "hitting the OEM [Dell] harder than in the past with anti-Linux actions," while other e-mails urged Bill Gates and Steve Ballmer to remind Dell "of the meat of why it's smart to be partnered with Microsoft."

      Dell's response? A spokesman for Dell, Mike Maher, declined to comment on the case but said the company sells computer equipment with the Linux operating system installed if requested.

      "We still offer [Linux] on the [corporate] side and as needed as customers ask for it," he said.

      Naturally, this shows a fear of retribution, but shortly after the emails, Dell stopped offer linux on the desktop.

    10. Re:Dell by JordanH · · Score: 5, Informative
      • I would love to see what Dell has to say about the OEM agreements with MS. After all they did support Linux for a little while. Now that seems to have gone by the waist-side.

      Dell stopped support for Linux? I wonder why?

      I won't make you go digging (quoting from the above article):

      The states intend to introduce a series of documents detailing discussions Microsoft had with Dell Computer Corp. with the goal of giving Dell a "hard time" about selling Linux desktops. Dell last year pulled its desktop Linux line.
    11. Re:Dell by billstr78 · · Score: 1

      No you flame-monkey, I read it on slashdot.
      http://slashdot.org/article.pl?sid=02/03/19/051624 3&mode=thread
      "Today, this article on Reuters news reports: 'Citing internal Microsoft memos, the nine states also said that in 2000 and 2001 Microsoft pressured Dell Computer Corp. into dropping plans to offer the open-source Linux operating system on some machines it sells.'"

    12. Re:Dell by lseltzer · · Score: 1

      So you uncritically believed something you read on /.? Dumber than I thought.

    13. Re:Dell by Jucius+Maximus · · Score: 1
      "Now that seems to have gone by the waist-side."

      It appears that you have thrown grammar to the wayside. :-)

    14. Re:Dell by Anonymous Coward · · Score: 0

      I also wonder what the reprecussions of Gateway speaking out against MS.

      worst case scenario, they'll have to find another operating system to ship with their systems *cough*linux*cough*

    15. Re:Dell by Anonymous Coward · · Score: 0
      Waist-side? You mean "wayside".

      • Ya see what happens when people stop using Word's grammar-checker?!!
    16. Re:Dell by Anonymous Coward · · Score: 0


      or at least "waste-side"

    17. Re:Dell by Anonymous Coward · · Score: 0

      It's wayside, not waist-side. Waist-side doesn't even mean anything; try finding a side to your waist. Unless you're shaped geometrically, you're going to have some difficulty.

    18. Re:Dell by Anonymous Coward · · Score: 0

      Reuters somehow loses credibility when they're quoted by /.?

    19. Re:Dell by evilpenguin · · Score: 2

      I'm going to reply to your sig. There are important differences between IE/Windows integration and Konqueror/KDE integration. That difference is konqueror will run under other desktops and window managers. Also KDE works without konqueror (the app). Also not only is Konqueror free, but so is KDE. Also you can run dozens of other window managers and desktops on top of you linux OS without penalty. If an OEM ships a PC without Windows, then they pay for a license of Windows anyways and they lose their "market development funds" (a $10 discount on each Windows license). KDE and konqueror have no such powers or controls.

      You have to undestand -- it isn't the act of integrating that was against the law: It was integrating in order to preserve monopoly power that was against the law. If Microsoft didn't have an OS monopoly, then integrating IE would not have been illegal.

    20. Re:Dell by Anonymous Coward · · Score: 0

      Also, almost nobody bought the afore mentioned Dell desktop machines, and selling a Linux install resulted in an expensive fragmenting of tech support.

      Dell can't say 'RTFM' to paying customers. Maintaining two seperate support staffs for whichever OS the customer chose is expensive.

    21. Re:Dell by Anonymous Coward · · Score: 0

      Grammar? I'd call it a spelling problem. :)

    22. Re:Dell by Strog · · Score: 1
      That difference is konqueror will run under other desktops and window managers

      I've run IE with Litestep and dozens of other window managers for Win32. I see that Litestep seems to be down now. I haven't been keeping up.

      it isn't the act of integrating that was against the law: It was integrating in order to preserve monopoly power that was against the law.

      I agree that the problem isn't integration and I don't see how removal is the answer. They should be punished but the chances of real legal punishment are very slim.

    23. Re:Dell by Queer+Boy · · Score: 1
      I would love to see what Dell has to say about the OEM agreements with MS. After all they did support Linux for a little while. Now that seems to have gone by the waist-side. I also wonder what the reprecussions of Gateway speaking out against MS.

      Well, for starters it's wayside, and I'll assume it was a transposition type with "repercussions". Gateway is actually in a good position to do this, and it will benefit them greatly if they succeed.

      Pretty much everyone reading Slashdot knows that Gateway bought Amiga, for whatever that means they received in the deal. Gateway is also a direct marketer with a handful of outlets. Gateway would probably love to offer AmigaOS and Linux machines. When you are a direct marketer, you profit most by doing whatever each individual customer wants, not by trying to guess what the vast majority want. Gateway doesn't send out a configuration and hope it moves off of the shelf, you tell them what you want. Not that Gateway is all that great at making quality machines, but wouldn't it be great to see that stupid cow talking about how he just made friends with a penguin?

      --
      Not since Marie-Antoinette played milkmaid has looking simple and honest been so fake and complicated.
    24. Re:Dell by Anonymous Coward · · Score: 0
      All Slashdot know that Gateway sold Amiga too. They also stopped selling Cobalt Qube's when Sun bought Cobalt.

      [sarcasm]They did real good at standing up to Intel with their Athlon systems. They will probably do as well with standing up to Microsoft[/sarcasm]

    25. Re:Dell by snarfer · · Score: 1

      But not DUAL-BOOT. Never DUAL-BOOT systems, so REGULAR computer users who start out with a Windows system can discover the alternatives. Microsoft will not allow that.

    26. Re:Dell by Anonymous Coward · · Score: 0

      Shouldn't that be an idiom problem?

    27. Re:Dell by eniacpx · · Score: 1

      Is it just me or doesn't it seem like if you push your distributors around enough and one of them speeks up about it, you will be in big trouble if the rest follow suit? Or don't any of the other companies have the balls to do that?

    28. Re:Dell by flatrock · · Score: 2

      A sensational soundbyte from a Reuters doesn't have much credibility to begin with. In this case it's a clip about the prosecution claiming that Microsoft pressured to stop selling Linux on some systems. I'm not sure how you take that to mean that Dell no longer sells Linux on systems.

    29. Re:Dell by spectecjr · · Score: 2

      Dell stopped support for Linux?

      Not the last time I tried to buy a server from them, they hadn't. And this was 2 weeks ago. You can even buy a server with no OS at all, if you want.

      Simon

      --
      Coming soon - pyrogyra
    30. Re:Dell by blues5150 · · Score: 1

      Thanks for the correction. :)

      --

    31. Re:Dell by Anonymous Coward · · Score: 0

      It's cool when you can choose

    32. Re:Dell by tomstdenis · · Score: 0, Flamebait

      Well when I bought my computer in 10 distinct parts I chose too.

      Whatever.

      If you buy a pretty combo pre-made comp from DELL don't complain when it comes with Windows.

      If you really want a choice, REALLY MAKE a choice like I did.

      I bought my mobo+cpu+ram+disk+case+fan+cdrom+etc... all as separate parts. I then had a choice. That's like saying Intel has a monopoly since alot of Dells are packaged with P4's. Duh, same thing.

      In my case I had a choice of buying MS Windows or installing linux. Since I wanted an OS that works I got Windows. But I suppose if you wanted a crippled OS you can install Linux all you want WITHOUT buying or owning windows.

      Its all about paying attention to what you order, e.g. its about being smart, obviously something you are not.

      Tom

      --
      Someday, I'll have a real sig.
    33. Re:Dell by dprice · · Score: 2, Interesting

      The startup company that I work for ordered over 100 machines from Dell without any software loaded since we were putting Linux and our own UNIX variant on them. Shortly after receiving the machines, Microsoft was knocking on our door wanting to do an 'audit'. They wanted proof of every license for every copy of their software we had running. Our poor IT guys had to waste thier time collecting all the information.

      In the end, Microsoft found that we had more licenses than copies of running Microsoft software. It's very annoying that Microsoft assumes we are guilty until proven innocent and harrasses our small startup company, wasting our scarce time and money. It was probably cheaper to comply with their audit than to fight them in a legal battle.

    34. Re:Dell by swillden · · Score: 1
      You mean "Since I wanted an OS that didn't confuse my poor head I got Windows".

      Tom, we know you tried to install Linux and failed, because even Red Hat's point and drool installer was too confusing for you, and we understand your desire to blame your own inadequacy on the operating system, but you really should acquire a little intellectual honesty and admit that your inability to use Linux does not mean everyone else is similarly handicapped.

      It's too bad, really. The UNIX command line is an ideal environment for playing with crypto. Creating many tiny utilities that munge data streams in particular ways and then stringing them together with a powerful shell and scripting language makes for a fantastically productive environment for cryptanalysis, cipher design and protocol design.

      If you don't want to go all the way to Linux, I highly recommend that you get a copy of the Cygwin toolset, which gives you a full suite of command-line tools for use under Windows, and learn how to use it. You'll like it.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    35. Re:Dell by Anonymous Coward · · Score: 0

      Haha, you got modded up. Take that!

    36. Re:Dell by andcal · · Score: 1

      Dell is doing OK financially, especially considering the economic situation of the past year.


      Gateway has not been doing very well recently. In fact, within the last 6 months, I have seen speculations on them possibly filing bankrupcy (I haven't seen any follow up recently, so they may be doing better, they may not be, I honestly don't know). When the slump hit, Gateway was not in as strong of a position in the PC market as Dell was, which likely had a lot to do with their recent struggles (I am not a financial genius, I don't know)


      So is it surprisung that Gateway has little or nothing to lose from complaining openly in court about what they percieve to be unfair practices, but Dell values their relationship with Microsoft more than any possible advantage which may come by whining & crying about the deal in court?
      --
      --something witty
    37. Re:Dell by enrayged · · Score: 0

      but the general market is not a big market for servers, usually only businesses will buy a server, and hence chances are real good you talked to someone on the corporate side, or switched the salesman into corporate mode

    38. Re:Dell by spectecjr · · Score: 2

      but the general market is not a big market for servers, usually only businesses will buy a server, and hence chances are real good you talked to someone on the corporate side, or switched the salesman into corporate mode

      What salesman?

      I went to their website, priced out their cheapest ($499) server, under the Small Business section.

      Dell Power Edge 500 SC

      It comes with a choice of:

      Windows 2000 Server,5 Client Access Licenses,English,4GB, Partition [add $799]
      MS Windows NT Server 4.0 [add $799]
      Windows NT4,Primary Domain Controller [add $799]
      Windows NT4,Backup Domain Controller [add $799]
      Red Hat LINUX 7.2 [add $159]
      Red Hat LINUX 7.2,NO DOCS [add $119]
      Netware 5.1 with 5 New User Licenses, NFI Image [add $749]
      Netware 5.1 with 5 User Upgrade Licenses, NFI Image [add $399]
      No Operating System(OTHER)
      Netware 5.1 with 5 User Upgrade Licenses for Higher Education, NFI Image [add $399]

      --
      Coming soon - pyrogyra
    39. Re:Dell by tomstdenis · · Score: 1

      Well if you read my posts you'd realize I use GNU tools quite a bit in my XP command line. That includes cygwin which I use for zip/gcc and perl.

      You don't have to install Linux to take advantage of OSS.

      And no, the reason I don't like Linux is not because its too confusing to *use* its too confusing [e.g. not designed right] to *setup*.

      Also try using half the hardware that windows supports in linux. That includes a scanner, wintv card, cdrs etc...

      Anyways, my point is not really a OS war thing. Its that Dell packages windows for the sole reason that the housewifes that buy the comps really want to just plug in the computer and use it. They don't care about advancing some cult of half wit grabastic piles of amphibian shit that enjoy a command line only on a 1500$ computer.

      Tom

      --
      Someday, I'll have a real sig.
    40. Re:Dell by Anonymous Coward · · Score: 0

      while other e-mails urged Bill Gates and Steve Ballmer to remind Dell "of the meat of why it's smart to be partnered with Microsoft."

      The reason why it's smart to partner with microsoft, is they have government approval to be anti-competitive by screwing customers without fear of court action; Sometimes good people do bad things if it means "saving the ship" vs. turning it over to the unknown.

    41. Re:Dell by Mizery+De+Aria · · Score: 1

      "We still offer [Linux] on the [corporate] side and as needed as customers ask for it," he said.

      I tried to get a Linux PC from Dell early December last year.

      According to Gene Cook at Dell "I gues MS just has too much power over us."
      This was stated when requesting (via email) to order a Dell Dimension 8200 PC with Linux pre-installed. It was denied.
      I then asked if it was possible to have a Dell Dimension 8200 PC with no O/S installed. Denied again.
      I was then advised (via phone call) the only way I could get PCs with Linux pre-installed was if I ordered at minimum twenty-five.

      Dell info:
      Dell Linux Dept. -> 1-800-917-3355 x67613

      Gene Cook
      Business Account Manager
      Gene_Cook@dell.com
      (800) 901-3355 ext. 63077
      Fax 800-607-9327 (Attn. Gene Cook)

      --
      If you're religishitty, KILL YOURSELF!
    42. Re:Dell by ImaLamer · · Score: 2

      Sounds like a mafia boss.

      "Remind him how smart he is boys"

    43. Re:Dell by javacowboy · · Score: 1

      Well, Gateway's not doing so well nowadays, so I guess they figured: "What the hell!".

      --
      This space left intentionally blank.
    44. Re:Dell by Anonymous Coward · · Score: 0

      I *really* wouldn't say so. First systems Dell delivered with Linux preinstalled (Red Hat 6.1 Linux) where those from the PowerEdge Series, far away from the "housewife market".

      In fact, on those days Dell didn't sell Linux preinstalled on *nothing* but the servers.

    45. Re:Dell by tomstdenis · · Score: 1

      The complaint is that Dell computers typically come with windows.

      My post was to justify that most people who buy household Dells will want Windows.

      Tom

      --
      Someday, I'll have a real sig.
    46. Re:Dell by jcast · · Score: 1

      If Microsoft didn't have an OS monopoly, then integrating IE would not have been illegal.

      In other words, anti-trust laws eliminate equality before the law for corporations.
      --
      There are reasons why democracy does not work nearly as well as capitalism.
      -- David D. Friedman
    47. Re:Dell by lamont116 · · Score: 1

      A $799 operating system on a $499 computer? Barnum was right.

    48. Re:Dell by swillden · · Score: 1

      Well if you read my posts you'd realize I use GNU tools quite a bit in my XP command line. That includes cygwin which I use for zip/gcc and perl. Nice stuff, ain't it? I recommend learning a bit of bash as well; trivial on-the-fly programming on the command line is immensely useful.

      And no, the reason I don't like Linux is not because its too confusing to *use* its too confusing [e.g. not designed right] to *setup*.

      It's somewhat more complicated to set up, at present (which has little to do with how it's designed and a lot to do with what a nasty problem automatic hardware detection and configuration is and the fact that there hasn't been much interest in automating it until recently). OTOH, I find that when something doesn't work under Linux I can always find out why and fix it. When stuff breaks under windows it's not uncommon that the only fix is to reinstall the OS (and all apps, etc.)

      On balance, I spend far *less* time setting up my Linux systems than I do my Windows systems, simply because (a) Linux rarely breaks, (b) when it does break it's fixable (c) it doesn't seem to suffer from "Windows entropy" (the gradual increase in weirdness, decrease in performance and general loss of stability that seems to happen inevitably over time with Windows boxes -- which is generally fixed by reinstalling) and (d) I can script all sorts of little automatic reconfiguration goodies, so I don't have to muck with them daily.

      Also try using half the hardware that windows supports in linux. That includes a scanner, wintv card, cdrs etc...

      I have a scanner, two CDRs, a plethora of PCMCIA and USB devices, Infrared, advanced power management (suspend/hibernate/etc.), three different printers, a DVD-ROM drive, wired and wireless networks and a bunch of other crap I can't think of at the moment that all works fine on my various Linux boxes. In fact, most of it works *better* in various ways than it does under Windows, because the people who write the hardware support in Linux (or other people who come along later) tend to be interested in doing lots of interesting things that may not have been considered by the company contracted by the HW mfg. to do the "official" drivers/software, etc.

      One example is the 802.11b card in my laptop: Under Windows I have to constantly go into the configuration options to turn WEP on and off as I move between networks (yeah, WEP sucks, blah, blah, blah -- it still keeps my neighbors from using my home network without my permission). Under Linux, the driver has an option that will keep trying all of the various configurations until it finds one that allows it to connect. Further, I took five minutes and wrote a trivial script that automatically gets called after my system gets a DHCP response and enables a different set of rules for my firewall depending on WEP mode and other details of the local network.

      It's little stuff like that driver option and the fact that there is an easy way to hook a script into the network auto-configuration process that make Linux so much nicer to people who know what they're doing.

      Anyways, my point is not really a OS war thing. Its that Dell packages windows for the sole reason that the housewifes that buy the comps really want to just plug in the computer and use it.

      Actually, my opinion is that Linux really shines in the case of a pre-configured, just-plug-it-in-and-it-works machine. And my nearly 80 year-old grandparents agree. I'd say that Linux is awesome for power users, a great choice for complete novices (assuming it's all installed and configured for them) and still a hard sell for the middle of the road users who want to be able to mess with hardware, install software they get at Best Buy, etc.

      They don't care about advancing some cult of half wit grabastic piles of amphibian shit that enjoy a command line only on a 1500$ computer.

      Geez, Tom, you started out so well, then lapsed back into insult mode. Just keep in mind that all those people you're calling halfwits *could* figure it out, and you *couldn't*. And why in the world would anyone use only a command line? Hell, even my router has a GUI, even though it doesn't have a monitor or video card (virtual X servers are nifty). Command lines are great for some things, GUIs are great for others; much of my Linux software offers both and I use what's appropriate for the task at hand.

      Anyway, I've been avoiding work for long enough... better get back to it. I hate writing threat models. They're fun to think about but really boring to document.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    49. Re:Dell by Anonymous Coward · · Score: 0

      try this link:
      http://www.dell.com/us/en/dhs/topics/linux_ linuxho me.htm

    50. Re:Dell by evilpenguin · · Score: 2

      Nonsense. The law treats all monopolies equally. A corporation that doesn't have a monoply is not the same thing as one that does.

      By your logic, we should all be able to prescribe drugs, because otherwise Doctors and non-Dcotors would be treated unequally before the law. Think before you type.

    51. Re:Dell by jcast · · Score: 1

      ``Prescribe'' is such a strong word...

      Yes, I believe we should all be allowed to ingest any substance we have legally obtained (i.e., produced ourselves or obtained with the permission of the former owner). And we should be allowed to recommend any action to any person who wants to listen to us. So, yes, we should all be able to prescribe drugs.

      Btw., I thought it was obvious I was a pretty radical Libertarian. Think before you type.

      --
      There are reasons why democracy does not work nearly as well as capitalism.
      -- David D. Friedman
    52. Re:Dell by Aus-Rust · · Score: 1

      reminds me of a quote from an english comedy called the goon show
      "How do I open this door ?"
      "You turn the knob on your side ."
      "I haven't got a knob on my side !"

      I know , I Know - points for off topic

      --
      one day I'll have a .sig all of my own
    53. Re:Dell by mpe · · Score: 2

      Actually, my opinion is that Linux really shines in the case of a pre-configured, just-plug-it-in-and-it-works machine. And my nearly 80 year-old grandparents agree. I'd say that Linux is awesome for power users, a great choice for complete novices (assuming it's all installed and configured for them)

      There are plenty of environments where a preconfigured system which "just works" and cannot easily be put into a state where it dosn't work are exactly what is required. You can't easily do this with Windows, nor can a large OEM really do this with any OS. It's something which is more applicable to the small retailer (so long as they arn't prevented from configuring machines they sell) or a corporate IT department.

      and still a hard sell for the middle of the road users who want to be able to mess with hardware, install software they get at Best Buy, etc.

      Which is something Windows (especially the versions with no effective separation between "user" and "administrator" tasks) appears almost designed for. But are these really the majority Windows advocates would like people to believe they are. Anyway people who bring this kind of behaviour into the workplace are a complete menace....

    54. Re:Dell by SpinyNorman · · Score: 2

      Maybe Michael Dell, Ted Waite (? - Gateway) etc, should go visit Bill Gates accompanied by a bunch of "pipe totin' niggas" and "remind" Billy why it's smart not to fuck with them.

    55. Re:Dell by evilpenguin · · Score: 2

      You seem to suffer from some sort of belief that being a Libertarian makes your argument non-specious. I assure you this is not the case. I stand by my "think before your type." The fact that we do not agree about what should or should not be against the law does not ivalidate my assertion that treating a monopolist differently from a non-monopolist does not constitute a violation of the guarantee of equal protection. You have a political disagreement about the correctness of the law. That does not make the law cease to exist or render it unenforacble. If wishes were horses, so goes the medieval saying, then beggars would ride. You may be correct in your beliefs (although I do not think so), but your beliefs (may I say, thank goodness) are not the law of the land. There are two ways to make them so: defeat the law through the courts, or change them through legislation (unless you believe that you can bring about a constitutional convention, which is the one form of direct legislation allowed the citizens of the United States).

      Good luck to you.

    56. Re:Dell by jcast · · Score: 1
      You seem to suffer from some sort of belief that being a statist makes your argument non-specious :)

      Seriously, though, your ``argument'' was:

      Nonsense. The law treats all monopolies equally. A corporation that doesn't have a monoply is not the same thing as one that does.

      In your and the courts' opinion. I (obviously) disagree. What I'm arguing is that the courts should overturn the laws; as a Libertarian I think I have every right to make that argument outside of the courts, and I don't care about speciously strong appeals to false authority. (The courts are experts, but they're not infallible.)

      By your logic, we should all be able to prescribe drugs, because otherwise Doctors and non-Dcotors [sic] would be treated unequally before the law. Think before you type.
      In other words, if I really believed what I said, I would also believe something else I believe. That is perfectly true. Whether it is relevant I leave as an exercise for the reader.
      --
      There are reasons why democracy does not work nearly as well as capitalism.
      -- David D. Friedman
    57. Re:Dell by evilpenguin · · Score: 2

      You have the right to make any argument anywhere you like and I would never say that you do not. I do not argue the infalliability of the courts, but I do value their inertia. The great innovation of the founders of this government was plodding bureaucracy. The best defense of liberty is a complex and unweildy government, slow to change, impossible to control. God save us from effective government. Every effective government with which I am familar has been a tyranny. I would rather a court system, moderated by precedent, (in some circumstances) mediated by juries, presided over by politically appointed and elected judges decided what "equal protection" means than an individual or a single party. Obviously, judges, jurors, lawyers, governors, presidents, senators have agendas and selfish interests. The beauty of the system is that the power of these interested indivduals is diffuse.

      So you don't agree that the Sherman Act is consistent with equal protection. Fine. That does not make it so. That is my argument. With that, I abandon this dead horse and leave the field to you.

    58. Re:Dell by jcast · · Score: 1
      So you don't agree that the Sherman Act is consistent with equal protection. Fine. That does not make it so. That is my argument.

      Sorry. I thought your argument was: The courts agree the Sherman Act is consistent with equal protection. That makes it so.

      Mea Culpa.

      With that, I abandon this dead horse and leave the field to you.

      So I win by default, then? Yeah! :)
      --
      There are reasons why democracy does not work nearly as well as capitalism.
      -- David D. Friedman
    59. Re:Dell by flatrock · · Score: 2

      Tried it. Page did not exist on dell's site.

  7. Well, shit happens by kypper · · Score: 4, Insightful

    Microsoft is allowed to have that kind of penalty imposed; all these OEMs needed to do was get together and contest various parts of the licence agreement.

    I agree that they needed windows because of the demand, but that doesn't mean they take anything Microsoft demands without a whimper.

    In the words of Blake, "Do not go gentle into that good night... Rage, rage against the dying of the light."

    Fight for what you believe in, or you deserve it.

    1. Re:Well, shit happens by Anonymous Coward · · Score: 0

      In the words of Blake, "Do not go gentle into that good night... Rage, rage against the dying of the light."
      I think that was Dylan Thomas.

    2. Re:Well, shit happens by Quill · · Score: 1

      > In the words of Blake, "Do not go gentle into that good night... Rage, rage against the dying of the light."

      Dylan Thomas, actually, but on a more on-topic point:

      I'm confused - hasn't this sort of thing been outed already? How could the initial settlement not take care of this?

      To me, this issue seemed to be the plainest example of Microsoft's abusive monopoly, something even the technically unsavvy could understand.

      --
      My religion forbids the use of sigs.
    3. Re:Well, shit happens by Anonymous Coward · · Score: 0
      Microsoft is allowed to have that kind of penalty imposed; all these OEMs needed to do was get together and contest various parts of the licence agreement.

      The problem with this theory is that if all the large OEMs got together to try negotiate a better deal with Microsoft, they would most likely be breaking anti-trust laws themselves.

    4. Re:Well, shit happens by spurious+cowherd · · Score: 1
      In the words of Blake, "Do not go gentle into that good night... Rage, rage against the dying of the light."

      Actually, Dylan Thomas

      --

      Time flies like an arrow, fruit flies like a banana.

    5. Re:Well, shit happens by PenguinLord · · Score: 3, Insightful

      all these OEMs needed to do was get together and contest various parts of the licence agreement. Yeah right, these companies compete heavily for a tiny piece of profit compared to what M$ gets on each sale. All M$ has to say to one is, shut your yap or i will give the other guy a better price on the O/S allowing him to undercut you on the bottom line.

    6. Re:Well, shit happens by ethereal · · Score: 1

      Unfortunately, the laws are based on the theory that the government will be keeping the market free and open, so that competitors shouldn't have to. This has not been the case recently, though.

      --

      Your right to not believe: Americans United for Separation of Church and

    7. Re:Well, shit happens by fanatic · · Score: 3, Insightful

      I'm confused - hasn't this sort of thing been outed already? How could the initial settlement not take care of this?

      To me, this issue seemed to be the plainest example of Microsoft's abusive monopoly, something even the technically unsavvy could understand.


      Understanding is not the issue. Will and desire to do ANYTHING MEANINGFUL to MS is the issue. DOJ, as commanded by Bush, has no will or desire to do anything to MS except make the antitrust suit go away. The lameness of the agreement and the fact that DOJ now acts like they are Microsoft's lawyers in trying to sell this piece of crap demonstrates that conclusively.

      --
      "that's not encryption - it's a new perl script that I'm working on..." - from some Matrix parody
    8. Re:Well, shit happens by ceswiedler · · Score: 2

      I think those words were Dylan Thomas.

  8. How is this NOT racketeering? by xtremex · · Score: 5, Interesting

    I've always known this was true, but now we have a REAL company vouching it..but how does MS do it? Do they send goons in and say "if you don't install Windows we will break your legs?" I mean, how is this different from racketeering? The Mafia does that in major cities with Waste Management. You can only use THEIR company, or they break your legs or set your building on fire. WHich is very similar to how tings work in Eastern-bloc countries.

    --
    If you're not a Liberal in your 20's, then you have no heart.If you're still a Liberal in your 30's you have no brain.
    1. Re:How is this NOT racketeering? by Spectre · · Score: 1

      How is it done? Like this:

      $50/licence and we'll send you several-months-in-advance "engineering samples" of new OSes before they are released so you can test with your hardware, provided you include a copy with every PC sold.

      $100/licence and we'll send you 3-day-in-advance "engineering samples", if you sell even one machine without a copy of windows.

      --
      "Flame away, I wear asbestos underwear"
    2. Re:How is this NOT racketeering? by Pxtl · · Score: 3, Informative

      The agreement goes more like this - if you don't load Windows on every box you make, and nothing but windows (I am a jealous god, and will have no others before me) then M$ will make windows so expensive for you that you won't be able to sell windows boxen at all and remain competative. Thus, you will be forced into a specialized second string market of non-preloaded computers, and probably go out of business. That's probably what it says.

    3. Re:How is this NOT racketeering? by Binky+The+Oracle · · Score: 5, Interesting

      It's not racketeering because MS isn't technically committing a crime in order to commit other crimes. Well... sort of... antitrust law is a pretty freaky place and I don't like to think about it too much. =-)

      However, from The American Heritage Dictionary via dictionary.com:

      racketeer: n. A person who commits crimes such as extortion, loansharking, bribery, and obstruction of justice in furtherance of illegal business activities.

      I suppose one could say that MS has engaged in extortion of sorts, but since the extortion is in the form of a voluntary license agreement , and not backed up with threat of physical violence (the OEMs always have the "choice" of not licensing Windows), it becomes much harder to prove. That's where the antitrust things come in...

      The real problem with this whole issue is that the OEMs have been stuck between a rock and a hard place. On the one hand, they have Microsoft playing both good cop and bad cop: unconscionable licensing terms along with a sweet discount on the OS. On the other hand, they have consumers who are, for whatever reason, convinced that if they don't get Windows on their computer, their computer won't actually work.

      I don't know what the solution is. If I did, I'd be a highly paid consultant for several states' attorneys general. Perhaps if Microsoft were just prohibited from connecting their licensing terms or agreements to any other OS (i.e. no penalties to the OEMs for offering another OS...) that it might be a start. Probably not enough, but a start.

      Or perhaps if the OEMs were to create an association to negotiate with Microsoft for licensing terms things would improve. They really need a single voice, because MS is too good at divide and conquer. The real problem, however, is that MS is also too good at convincing consumers that they really need Windows because "there's nothing else available."

      In this case, Microsoft's goons are the consumers demanding Windows on their PC.

      --

      Slashdot comments... splitting hairs since 1997.

    4. Re:How is this NOT racketeering? by dusanv · · Score: 1

      Hey, all of Eastern block coutries' net worth doesn't add up to half of M$. The biggest & badest racketeers are in the West ;) (I know it's off topic but I hate these kinds of self delusional comments)
      D.

    5. Re:How is this NOT racketeering? by ThePlague · · Score: 0

      Gateway is a real company? That's an interesting opinion; their products strike me as the unhappy successor to the Packard Bell line. More likely, they are setting the stage for a MS lawsuit to save their failing business. Let the feeding frenzy begin!

    6. Re:How is this NOT racketeering? by Bat_Masterson · · Score: 1

      The "goons" that M$ uses is the company's shareholders. If M$ takes away some substantial portion of the company's profits (by not giving the company a discount), the shareholders of the company will shoot the executives for M$.

    7. Re:How is this NOT racketeering? by iabervon · · Score: 2

      If you don't agree to their terms, you can't get a license to sell Windows bundled with your machines at all.

      The interesting question is what they'd do now. If an OEM lost its license to sell Windows on their machines, and kept doing so, MicroSoft would presumably have to sue in order to stop them. It would probably now be hard for MicroSoft to win that lawsuit, even with a clear copyright violation in progress. "Yes, I know we're an illegal monopoly, and I know the license terms we had given them were illegal, but make them stop anyway." A civil court is not likely to be particularly happy to help a convicted criminal commit a crime, even if the law is clear and the court is immune from a conspiracy charge.

    8. Re:How is this NOT racketeering? by blang · · Score: 2

      It is NOT raqueteering, but is inviolation of antitrust laws.

      It's the exclusivity that makes this dangerous. If Microsoft OWNED the HW manufacturer, they could chose to only sell MS products.

      It's like the relationship between pub and brewery. If the brewery owns the pub, they can chose to sell whatever they like, for example Bud and nothing else.

      Id Bud tried to enter into exclusive relationships with a pub they don't own, I am pretty sure FTC would slap them so bad their heads would spin. Which makes it REALLY dubious that MS has been treated with kid gloves so long.

      It appears to me that the legislators, the executive branch, and the court system are afraid to act because they don't understand the technology. Beer they would understand, but software is way over their heads.

      --
      -- Another senseless waste of fine bytes.
    9. Re:How is this NOT racketeering? by haystor · · Score: 0, Troll

      I think its just a matter of whiny customers using the law.

      Microsoft gains a certain value when Windows is shipped on all computers. Because of this they are willing to sell it per computer for less than they would otherwise. These computer companies are not being "penalized" for not shipping it on every computer, they are paying more when they install different OS's piecemeal.

      Its not racketeering because (even if they are guilty of something) its a monopoly using its monopoly power to extend the monopoly. Being a monopoly in the first place isn't a crime, so there is only one crime here.

      I went to the car dealership the other day. All the tires were by the same manufacturer. This is not quite a good analogy because most car companies use more than one source of parts so that just this sort of things doesn't happen. Computer companies reaped the benefits of a homogenous operating system.

      Maybe they should be let out of the contract and be allowed to pay full retail on every copy of windows. Hmm...they don't actually want that option do they?

      --
      t
    10. Re:How is this NOT racketeering? by xtremex · · Score: 1

      Now THAT is illegal. Giving advanced copies, etc is perfectly legal and makes sense, but gouging a vendor because they WON'T foloow their instructions has no legal standing as far as I know.

      --
      If you're not a Liberal in your 20's, then you have no heart.If you're still a Liberal in your 30's you have no brain.
    11. Re:How is this NOT racketeering? by Binky+The+Oracle · · Score: 2, Funny

      The other weakness in the tire analogy is that tires are more or less interchangeable components. While an auto manufacturer may have an exclusive deal with Goodyear, if Goodyear starts misbehaving, the auto manufacturer can switch to a different brand and the car will still work just fine.

      Now if you could only use Goodyear tires on 90% of the roads in the country, that would be a different story, and the auto manufacturer would be in a tighter place.

      I agree with other posters that PC manufacturers brought this situation upon themselves by agreeing to exclusive deals back when Microsoft didn't really have the muscle to force its own terms. MS made them a great short-term deal, and now they're learning the hazards of short-term profit over long-term strategy.

      Compound this with other OS providers showing similar lack of vision (Apple, IBM), and we Microsoft telling us where we'd like to go today.

      --

      Slashdot comments... splitting hairs since 1997.

    12. Re:How is this NOT racketeering? by charstar · · Score: 1

      is anybody else reminded of the scene in Office Space when they are looking up the definition of "laundering", (as in money)?

      just an offtopic thought...

    13. Re:How is this NOT racketeering? by Binky+The+Oracle · · Score: 1

      YYyeeeeaaaaah. Grreeeaaat.

      Ummmmm. Listen, I'm gonna need you to come in on Saturday, mmmkay? Yyyyeeeeeaaah.... we need to do some vocabulary work for the Justice Department. Big project. Soooooo, if you could be here at, ohhhhh, 8 am, that'd be great, mmmkay? Thanks!

      --

      Slashdot comments... splitting hairs since 1997.

    14. Re:How is this NOT racketeering? by Anonymous Coward · · Score: 0
      if you don't load Windows on every box you make, and nothing but windows (I am a jealous god, and will have no others before me) then M$ will make windows so expensive for you that you won't be able to sell windows boxen at all and remain competative(sic).


      Ok, this is mostly futile since people are going to see this as a troll, especially as AC, but am I wrong in noticing that there is a no consistent logic here? Supposedly the only reason MS stays in charge is because they threaten the pc makers to make them put Windows on. However, they carry out this with the threat of witholding Windows. Um....so if I don't want to sell Windows, they'll refuse to let me sell Windows? Hm... As you noted yourself, they have to sell Windows to remain competitive. The root problem, if indeed this is a problem per se (I sorta happen to personally think so, but...:-) , is that 'everyone' will not even buy a computer without Windows, and PC makers are hostage to consumer wants. The consumers are at fault for all of this, really, right? Hmm...

    15. Re:How is this NOT racketeering? by Anonymous Coward · · Score: 0

      If 90% of your customers want Windows, you aren't allowed to sell the other 10% what they want--Microsoft will give the obedient vendors such a price break (since the marginal cost for software licenses is zero) that you can't compete.

    16. Re:How is this NOT racketeering? by Anonymous Coward · · Score: 0

      It sounds like a protection racket. Not quite as overt as "if you don't install Windows we will break your legs"

      It's more like "It would be a shame if you couldn't sell Windows on your machines any more. We sure would hate to see that happen. But if you install a machine with [Linux/MacOS/Solaris/FreeBSD/OS2/etc], we are going to be very, very disappointed in you."

      I think of the mobsters in the Monty Python skit where they were intimidating the Army base CO: "Sometimes things break, don't they, Colonel?"

    17. Re:How is this NOT racketeering? by Znork · · Score: 4, Informative

      Not quite. Bud is not a monopoly and thus they can enter exclusive relationships. Of course, Bud is easily replaced and a pub being offered a cheap Bud-Only contract versus an expensive Bud or others contract would probably either sell expensive Bud or no Bud, mostly to the loss of Bud, because most of his buisness wont be Bud anyway.

      However, if Beer, Inc had dominated the beer market and sold 95% of all beer, the choice for a pub owner to either sell cheap Beer-Only, or expensive Beer plus a microbrew, then the pub owner would have little choice but to dump the microbrew.

      Monopolies are a problem, and get into trouble with the law, only when they use their dominant market power to prevent entry for others into the market. Bud would not have enough market power to violate antitrust law, while Beer, Inc, would.

    18. Re:How is this NOT racketeering? by 56ker · · Score: 1

      "It seems that if an OEM does not ship Windows on every PC they ship that they are severely penalized, and can have their license revoked" - just another way M$ keeps a stranglehold on the market. I thought most people knew this already anyway - even if this was changed though - putting computers into the marketplace with no OS (or Linux) would be financial suicide anyway. The only company I've ever heard of shipping a computer sans OS is WalMart.

    19. Re:How is this NOT racketeering? by Tony-A · · Score: 2

      It can play more subtle than that. A bit of documentation or information missing from the months-in-advance "engineering samples" with no way for the OEM to know that something is missing.

    20. Re:How is this NOT racketeering? by Anonymous Coward · · Score: 0

      hmmm... waste management... another fine anderson client i believe? (hint: enron)

    21. Re:How is this NOT racketeering? by mpe · · Score: 2

      I agree with other posters that PC manufacturers brought this situation upon themselves by agreeing to exclusive deals back when Microsoft didn't really have the muscle to force its own terms.

      Wouldn't they have been obliged to accept them anyway. Due to laws about maximising corporate profit...

  9. Why do people keep by tcd004 · · Score: 4, Funny

    talking about this like its new news? It's like every three months people forget and have to report it again. This has been constantly reported since at least since 1997.

    This is why I think there's some kind of mind control going on in the windows OS environment that keeps people from remembering this story. Thats why only alternate OS (Mac Linux etc) users really remember it month to month. Oh well, I guess it gives C-Net something to publish.

    Witness the rebirth of ENRON!

    tcd004

    1. Re:Why do people keep by Lendrick · · Score: 4, Insightful

      Microsoft bullying OEMs isn't news. What's news is that someone actually has the guts to testify about it. Microsoft is quite capable of making Gateway suffer for this.

    2. Re:Why do people keep by Bobzibub · · Score: 3

      It is not M$'s predatory practices, it is that a major company was brave enough to publicly complain. Way to go Gateway!

    3. Re:Why do people keep by billstr78 · · Score: 3, Insightful

      M$ may make Gateway suffer, but seeing as they already have a very small percent of the PC market share, they may stand to gain fans in the large community of *nix users. It's a loose/win situation

    4. Re:Why do people keep by Anonymous Coward · · Score: 0

      Yeah - let's skip all this boring legal stuff and just install a Dictatorship of the Mac and Linux Proletariat.

    5. Re:Why do people keep by Anonymous Coward · · Score: 0

      As opposed to a tight/win situation?

    6. Re:Why do people keep by ethereal · · Score: 1

      That's OK - once the Revolution is complete, we won't need the Dictatorship anymore :)

      --

      Your right to not believe: Americans United for Separation of Church and

    7. Re:Why do people keep by ThePlague · · Score: 0

      I am very curious what happened between Wal-Mart and MS, to cause them to offer PCs without an OS. You know MS has to be mega-pissed about it, but I doubt they can do anything. There's a HUGE ancillary market, giving support for these OS-less PCs, though my suspicion would be that the vast majority of these units will wind up with bootleg copies of Windows.

    8. Re:Why do people keep by rgmoore · · Score: 2

      The real news here (which you would have gotten by reading the whole article) is that the events Gateway is describing happened after DOJ and Microsoft proposed their settlement. IOW, the licensing practices under discussion appear to be allowed by the proposed settlement. That's big news because it shows that the settlement doesn't do squat to restrict Microsoft's anti-competitive practices. That may or may not be news to you, but it's very, very important that the judge finds out about it before deciding whether to accept the DOJ/Microsoft settlement!

      --

      There's no point in questioning authority if you aren't going to listen to the answers.

    9. Re:Why do people keep by Anonymous Coward · · Score: 0

      I can see you've been readinng your copy of 'On The Correct Handling of Contradictions Among The People'. Very good!

    10. Re:Why do people keep by csbruce · · Score: 2

      It's a loose/win situation

      Assuming that means "lose Windows".

    11. Re:Why do people keep by johnnyb · · Score: 3, Interesting

      Microsoft bullying OEMs isn't news. What's news is that someone actually has the guts to testify about it. Microsoft is quite capable of making Gateway suffer for this.

      ***

      Gateway's move was pretty smart, actually. Microsoft can't do ANYTHING to them or else they will have something else to testify and/or sue about.

      If a) MS loses their Trademark suit, and b) the OEMs get a backbone, they could offer Lindows as their next "upgrade" to their computers. The user might not even know that something was going on.

    12. Re:Why do people keep by Anonymous Coward · · Score: 0

      It was going on back in '94 when I worked at Data General. When DG sold PC's with SCO Unix they had to pay for a windows license for each one.

    13. Re:Why do people keep by sharkey · · Score: 2

      It's like every three months people forget and have to report it again.

      This is Slashdot. The editors here flush their memory buffers anywhere from 10 minutes to 10 days, and report the same story again as soon as the memory is freed. Three months turnaround is a pipe-dream when you're talking about Taco and Hemos.

      --

      --
      "Outlook not so good." That magic 8-ball knows everything! I'll ask about Exchange Server next.
    14. Re:Why do people keep by Anonymous Coward · · Score: 0

      > M$ may make Gateway suffer, but seeing as they already have a very small percent of the PC market share, they may stand to gain fans in the large community of *nix users. It's a loose/win situation

      Gateway doesn't want fans, it wants customers. Fans that cheer while the company goes under due to not being price competitive due to higher Windows costs or other problems won't do Gateway any good.

    15. Re:Why do people keep by Anonymous Coward · · Score: 0

      > Gateway's move was pretty smart, actually. Microsoft can't do ANYTHING to them or else they will have something else to testify and/or sue about.

      MS can't do anything overt, but they have plenty of smart-enough people to figure out some more subtle, hard-enough-to-prove ways of making sure Gateway pays for their testimony.

      > If a) MS loses their Trademark suit, and b) the OEMs get a backbone, they could offer Lindows as their next "upgrade" to their computers. The user might not even know that something was going on.

      ROTFL!!! Oh, of course, no one would *ever* notice the difference in the applications, the sudden change in the directory listings, the sudden inability to run .exes. Yes, it would be quite transparent.

    16. Re:Why do people keep by Vulture_ · · Score: 1
      Not only is this a PR move, but Gateway also stands to make Microsoft suffer. Gateway is saying this stuff in court, you will remember. It may be hoping that this testimony will bring down the Wrath of God on M$ for strong-arming OEMs.

      If M$ is prevented from strong-arming OEMs, then Gateway can widen its market because it can now sell Windows to those who desire it, and some other OS to those who don't. Bottom line: more customers, which means more money.

      In other words, it's a business risk. The risk exposure is only moderate (since it's improbable that their testimony won't be acted upon by the courts), and the payoff for taking the risk is good, because then they can reach a wider market.

      --

      The only way the typical /.er can pick up a chick is with a forklift. -- AC

  10. OEM punishment for testifying? by Spectre · · Score: 1

    And exactly what punishment for an OEM who testifies to this?

    --
    "Flame away, I wear asbestos underwear"
    1. Re:OEM punishment for testifying? by flewp · · Score: 2, Funny

      Well, I thought it was obvious..
      If you testify against MS, their henchmen will cut your hair Bill Gates stylee.

      --
      WWJD.... for a Klondike bar?
    2. Re:OEM punishment for testifying? by cscx · · Score: 4, Funny

      Looks like Bill Gates and Co. are going cow tipping tonight...

    3. Re:OEM punishment for testifying? by geekoid · · Score: 2

      No longer sell Windows OS at OEM price.
      That means that there computer would be at least 100 dollars more expensive then there competitor.
      Thats enough to kill a computer company.
      I have know about this for quite some time. I have always thought the major OEMS should get together, tell MS to shove it, and turn i into an AD campaign.
      You see a bunch of CEOs from competitive companyies talking about how they want to give the consumer a choice and the only way to do that was to raise there prices because MS won't give deals to computer companies that allow the consumers to have a choice on how they spen there money."
      The wouldn't run a week befor MS changed there ways.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    4. Re:OEM punishment for testifying? by Anonymous Coward · · Score: 0

      regarding your sig........

      IE integration is not a monopoly fool. it is an abuse of monopoly power.

      does KDE have monopoly power? no.

      therefor, Konq integration (which can be removed) is not an abuse.

      IE however is becasue that, along with MSs OEM licences that kept the OEMs from puting Netscape on the desktop, put netscape out of commision as a threat to MSs business.

    5. Re:OEM punishment for testifying? by teamhasnoi · · Score: 1
      According to recent news reports on the financial heath of Gateway, they might not have anything to lose.

      I also thought of an OEM 'union', but look at it this way. Truckers go on strike, big trucking company has lots of money, can hold out a long time, can hire 'scab' workers. Truckers starve. Big trucking company handpicks new truckers with no aspiration to strike.

      I am pretty sure that MS could withstand any sort of PC maker 'blockade' far longer than the low margin hardware industry. Too bad. I just bought a computer and put it together myself, had I bought a 'branded' PC, I would have windows xp right now. Instead (I'm doing audio with a windows only card :( I installed windows 98.

      :P to Bill

    6. Re:OEM punishment for testifying? by Binky+The+Oracle · · Score: 1

      I am pretty sure that MS could withstand any sort of PC maker 'blockade' far longer than the low margin hardware industry.

      An excellent point. In fact, if an OEM association popped up, I'd be really surprised if we didn't see some $699 Korean-made, Microsoft-branded PCs at your local Best Buy and Circuit City within a couple of months.

      Of course, if that were to happen, then Microsoft would be responsible for providing their own tech support and would be out of business within the year.

      --

      Slashdot comments... splitting hairs since 1997.

    7. Re:OEM punishment for testifying? by Anonymous Coward · · Score: 0

      Microsoft would have the justice department investigate them on antitrust grounds...

  11. I'm Shocked! by Anonymous Coward · · Score: 0, Redundant

    I, for one, am shocked to hear that Microsoft might have used monopolistic uncompetitive tactics in maintaining their hold on the desktop market!

  12. Actually it was Dylan Thomas by Anonymous Coward · · Score: 1, Informative

    With the rage rage stuff, not Blake. It's a poem about his father.

    1. Re:Actually it was Dylan Thomas by Anonymous Coward · · Score: 0

      Baretta was not Dylan Thomas's father!

      God you geeks are culturally ignorant.

    2. Re:Actually it was Dylan Thomas by Anonymous Coward · · Score: 0

      i think you read "his" with the wrong antededent. I read it as "Actually it was Dylan Thomas with the rage rage stuff, not Blake. It's a poem about his [Dylan Thomas'] father. That doesn't make them even related.

      but apparently you love to flame geeks. whatever works for you.

    3. Re:Actually it was Dylan Thomas by kypper · · Score: 1

      Eh, I've had a long day :op
      Yes, it is Dylan Thomas, for everyone else who wishes to bitch that I'm wrong.

    4. Re:Actually it was Dylan Thomas by Anonymous Coward · · Score: 0

      sorry, I was an English literature major. Being an asshole about poetry quotes helps to justify the money spent on my "education."

    5. Re:Actually it was Dylan Thomas by kypper · · Score: 1

      HAH! I was going to do that too, but I figured biochem would be more useful.

  13. Funny by 4of12 · · Score: 3, Insightful

    If you think back to how much MS had to push to get themselves pre-installed onto machines back in the 1980s where they were still fighting tooth and nail against competitive offerings.

    Now that Windows is effectively regarded as as much of necessary part of the computer as the motherboard, the shoe's on the other foot regarding their relationship with OEMs.

    Reminds me of the lyric from a song by the Police

    ...when you find your servant is your master...
    --
    "Provided by the management for your protection."
    1. Re:Funny by Anonymous Coward · · Score: 0
      Reminds me of the Police lyric "when you find your servant is your master"

      ... appropriately enough, taken from "Wrapped around your finger"

      Here's another suggestion: how about "Everybody hurts" by OEM?

  14. Of course, the judge... by rnturn · · Score: 1, Redundant

    ...will dismiss testimony out declaring it ``hearsay''.

    (My but I'm pessimistic today...)

    --
    CUR ALLOC 20195.....5804M
    1. Re:Of course, the judge... by johnnyb · · Score: 2

      ..will dismiss testimony out declaring it ``hearsay''.

      ***

      That's silly. The testimony earlier WAS hearsay. I can't comment as to your state of mind. Only you can do that. Lacking YOUR testimony, what I say about your state of mind is hearsay.

  15. What can I say? by Anonymous Coward · · Score: 0

    If you're willing to be Microsoft's bitch, don't act
    surprised if Microsoft treats you like its bitch.

  16. This is ANCIENT news. by Anonymous Coward · · Score: 0

    This was news way back in 1997, it ain't news anymore.... just reaffirming of history.

  17. Tell me again about *consumer* choice? by Philbert+Desenex · · Score: 4, Interesting

    Testimony like this and Michael Tiemann's puts lie to the MSFT propaganda about how consumers made them the multi-billion dollar owner of 90% of the market.

    It's pretty plain that consumers have *never* been offered a choice. No "market" for PC OSes ever existed.

  18. Microsoft wants product endorsement by laard · · Score: 3, Insightful

    This may be a different way of looking at it but I see it as an "endorsement." If Gateway uses Windows, customers see it as an endorsement. If Gateway also uses other competing products, then that endorsement loses its meaning. If you saw a Britney Pepsi commercial followed by a Britney Coke commerical, would either endorsement be effective? So wouldn't it be in Pepsi's best interest to see that she only endorses Pepsi?

    --
    --- If we knew half the things we shouldn't we'd stop wishing we knew it all
    1. Re:Microsoft wants product endorsement by renehollan · · Score: 1
      If you saw a Britney Pepsi commercial followed by a Britney Coke commerical...

      I'd barf.

      --
      You could've hired me.
    2. Re:Microsoft wants product endorsement by Graspee_Leemoor · · Score: 2

      "If you saw a Britney Pepsi commercial followed by a Britney Coke commerical..."

      A Britney Coke commercial:

      Britneeeeee: Ah!

      'Hit me baby, one more time!"

      graspee

    3. Re:Microsoft wants product endorsement by ryanvm · · Score: 2

      If you saw a Britney Pepsi commercial followed by a Britney Coke commerical, would either endorsement be effective?

      Hell yeah! Now that you mention it, I think we should get to see Britney in EVERY commercial.

      Oh wait, you meant effective at advertising. Yeah - I guess you're right.

    4. Re:Microsoft wants product endorsement by ethereal · · Score: 4, Interesting

      Does your grocery store endorse Pepsi when they sell Pepsi? Do you find that their "endorsement" has less meaning when they also sell Coke in the same aisle?

      I guess I don't see the "endorsement" angle here - retailers like Gateway or your local grocery store aren't endorsers of anything; they just stock what the public will buy and advertise it all.

      --

      Your right to not believe: Americans United for Separation of Church and

    5. Re:Microsoft wants product endorsement by nagora · · Score: 2
      So wouldn't it be in Pepsi's best interest to see that she only endorses Pepsi?

      Perhaps Britney would think it was in her best interest after Pepsi made it clear that they'd prevent her ever recording another CD again.

      TWW

      --
      "Encyclopedia" is to "Wikipedia" what "Library" is to "Some people at a bus stop"
    6. Re:Microsoft wants product endorsement by gspeare · · Score: 1

      If I see the new Britney Coke commercial and decide to pick up a six-pack on the way home, I don't have to empty my fridge, defrost it, disinfect it, plug it back in, and restock it before being able to drink the stuff!

    7. Re:Microsoft wants product endorsement by MuMart · · Score: 0

      That analogy would only work if you could only buy cola from Britney's Bubbly Pop Shop.
      This is not an advertising issue.

    8. Re:Microsoft wants product endorsement by Pussy+Is+Money · · Score: 1

      Britney can voluntarily enter the contract. Gateway reasonably cannot.

      --
      Pushin' 'n dealin', shovin' 'n stealin'
    9. Re:Microsoft wants product endorsement by some_schmuck · · Score: 1

      Well, the problem is that Britney is compensated to endorse Pepsi, and as such they can dictate what other similar endorsements she may or may not make. OEM's, however, are paying for the right to bundle Microsoft software, and as a consumer they should have the right to purchase (and then re-sell) at their discretion, not Microsoft's.

    10. Re:Microsoft wants product endorsement by Anonymous Coward · · Score: 0

      You're not buying either Pepsi or Coke if you
      buy a Britney CD. OEMs are more analogous to
      a shops selling both Pepsi and Coke.

    11. Re:Microsoft wants product endorsement by Anonymous Coward · · Score: 0

      Actually, there is often a tacit endorsement in most stores based on where the various soda products are placed. Either Coke or Pepsi is in the more prominent spot.

      One or the other is endorsed and sells better than it would have otherwise as a result.

    12. Re:Microsoft wants product endorsement by Anonymous Coward · · Score: 0

      Well, the comment was particularly about a marketing kickback program that MS runs. Which requires something like "Gateway PCs use Genuine Microsoft Windows XP", which is an endorsement of sorts.

      One of the points of contention historically between the OEMs and Microsoft is that the OEMs want to spam their logo all over Windows (recall the days of "Compaq DOS" and the like...)

    13. Re:Microsoft wants product endorsement by Noobie · · Score: 0
      If you saw a Britney Pepsi commercial followed by a Britney Coke commerical, would either endorsement be effective?

      Britney with Santa doing Coke commercial would be nice... But what Santa's wife would say?

    14. Re:Microsoft wants product endorsement by gnovos · · Score: 2

      If Gateway also uses other competing products, then that endorsement loses its meaning. If you saw a Britney Pepsi commercial followed by a Britney Coke commerical, would either endorsement be effective?

      Well, to make your analogy work, Brittany would have to be the one actually doing the selling. I mean, she would have to be behind the counter taking money and handing out product. Frankly, if I get to buy directly from her, I'll get in line for BOTH Pepsi and Coke.

      --
      "Your superior intellect is no match for our puny weapons!"
    15. Re:Microsoft wants product endorsement by Yankovic · · Score: 1

      No, but Pepsi pays the grocery store when they get placed at the end of an aisle, which has significantly higher pull through on sales. This is an implicit, if not explicit, endorsement. Same deal.

    16. Re:Microsoft wants product endorsement by Skapare · · Score: 2

      Most grocery stores are known to be places where you have to be able to choose all the major brands. There are some behind the scenes deals going on like vendors leasing shelf and display space ... and event floor space for those stickers. It's all marketing.

      However, go to a restaurant and you see a very different story. I've only ever seen one that had both Coke and Pepsi. All the rest have just one or the other. That's part of the deal to get the equipment loaned to them, or leased really cheap, along with very cheap syrup. So in fact this practice does exist between Coke and Pepsi. What Microsoft is doing is not much different. Think of the PC maker as a single source vendor like a restaurant, and a store like CompUSA as a multi source vendor. You can buy several different distributions of Linux, and even FreeBSD, in CompUSA just as you can buy several different makes of computers. And if they were popular enough, you might even be able to buy a brand of computer that came with Linux.

      Basically it comes down to brand-to-brand partnering. Microsoft is partnering with brands like Dell and Gateway, and is demanding that it be exclusive for the best deal. These are companies that either make what they sell, or buy OEM and put their name on it, or a combination. A store like CompUSA sells things mostly without changing the brand name, so that's different.

      We might not agree that what Microsoft is doing is right, but what they are doing is actually practiced in almost every kind of business. If you do make and sell PCs, and you want to make them with Windows installed for customers that want Windows, and with Linux installed for customers that want Linux, you just create 2 distinct brand identities. Obviously that's hard for Dell or Gateway to do, as the Linux computers wouldn't be able to capitalize on the well known name. Separately incorporated, they would not be a party to contracts with Microsoft.

      --
      now we need to go OSS in diesel cars
    17. Re:Microsoft wants product endorsement by Cro+Magnon · · Score: 1

      The critical difference is that neither Coke nor Pepsi is a monopoly.

      --
      Slow down, cowboy! It has been 4 hours since you last posted. You must wait another few hours.
    18. Re:Microsoft wants product endorsement by rsfc · · Score: 1
      This may be a different way of looking at it but I see it as an "endorsement."

      This is, in fact, totally different way of looking at it, since this analogy is very poor. Britney's 'principal' business is selling CDs and tour tickets. Although she may earn more by endorsing PEPSI, Coke, Durex, or whatever, it is just the promotion of somebody else's product. OEM_s work in such a way that their products (computers) are useless without somebody else's product (OS).

      --

      I have to digress here, if that other somebody else is MS, OEM's product is close to useless, anyway.

      --

      In the climate where one of the OS manufacturers has effective monopoly established AND is using those powers to maintain monoply by penalizing OEM_s for the inclusion of other products, we can't possibly talk about endorsement. It is simply fucking battle to survive!
      --
      :wq
    19. Re:Microsoft wants product endorsement by Anonymous Coward · · Score: 0

      Well, to make your analogy work, Brittany would have to be the one actually doing the selling.

      Dude, it's Britney.

      http://www.google.com/jobs/britney.html

    20. Re:Microsoft wants product endorsement by Anonymous Coward · · Score: 0

      > However, go to a restaurant and you see a very different story. I've only ever seen one that had both Coke and Pepsi. All the rest have just one or the other. That's part of the deal to get the equipment loaned to them, or leased really cheap, along with very cheap syrup. So in fact this practice does exist between Coke and Pepsi. What Microsoft is doing is not much different.

      So, where is that Win32 API-compatible alternate OS that competes with Microsoft's OS for OEM 'shelf space'?

      Oh, that's right, there isn't one.

      Sorry, failed analogy.

  19. Move to strike... by jdreed1024 · · Score: 5, Funny
    Microsoft on Sunday filed to strike large portions of the submitted testimony from the proceeding before U.S. District Judge Colleen Kollar-Kotelly. She did not grant the request.

    "Uh, your honor? We'd like to delete this testimony since it makes us look guilty. We're really not guilty, so you shouldn't allow anyone to intimate otherwise."

    They're pretty dumb if they thought they were going to get away with that. Once has to wonder what will happen to Gateway now... I think MS will take the cow boxes to the slaughterhouse while they still can.

    --
    There is no sig, there is only Zuul.
    1. Re:Move to strike... by csbruce · · Score: 1

      "Uh, your honor? We'd like to delete this testimony since it makes us look guilty. We're really not guilty, so you shouldn't allow anyone to intimate otherwise."

      What was the name of that corporate lawyer who keeps showing up on The Simpsons? The tall skinny guy?

    2. Re:Move to strike... by mbbac · · Score: 1

      Isn't Gateway the company that bought the Amiga OS and never did anything with it? Maybe they have it ready to roll if they have to. I'd love to see Gateway, Dell, or Hewlett Paqard buy BeOS and start selling their own Be boxes. This market needs more competitors and I don't care where it comes from. I'm a new Mac user, btw.

      --

      mbbac

    3. Re:Move to strike... by bughunter · · Score: 1
      Lionel Hutz.

      Here, have a smoking monkey!

      --
      I can see the fnords!
    4. Re:Move to strike... by Swaffs · · Score: 2

      That's not the lawyer he's referring to.

      --

      --
      "Karma can only be portioned out by the cosmos." - Homer Simpson [1F10]

  20. Kind of ironic by jht · · Score: 5, Insightful

    When I loaded the story to read it, it had a Gateway ad in the middle of the story. Go figure.

    More seriously, this is an example as to why virtually all PC-only vendors are screwed in the long run (and why I won't buy Dell stock, no matter how well they do). Everybody in the PC industry builds commodity hardware, running an OS they don't control, and tries to compete based on marketing and lowest-cost production. Thanks to things like Microsoft's OEM contracts, there's just no room to go anywhere else. Dell's success is strictly based on execution and volume - they bring nothing else to the table, really. Same with Gateway, and all the other commodity vendors.

    So if the MS monopoly is ever broken, it'll be at the hands of companies that have an investment in their own technology, and their own R&D. Perhaps companies that have access to non-Wintel technology (Compaq/HP, though they killed Alpha, IBM, Apple) will be able to take a stab at it. Right now, though, nobody but Microsoft really matters in the desktop supply chain.

    --
    -- Josh Turiel
    "2. Do not eat iPod Shuffle."
    1. Re:Kind of ironic by uslinux.net · · Score: 3, Interesting
      Actually, Dell has done quite well because they beat out Gateway for the Government FastTrack program. Basically, gov't agencies can bypass the usual procurement and go righht to Dell. It avoid the bureaucratic headaches and paperwork commonly associated with the gov't.


      Unfortunately (or fortunately, if you're Dell), only one company of any type can be on the FastTrack program. so, if you're buying a desktop for your employees,you buy Dell because it's easy. The program lasts 2 or 3 years, I think.


      So long as Dell retains their FastTrack status, they're set.

    2. Re:Kind of ironic by Anonymous Coward · · Score: 0

      I won't buy a dell because of the ads. "Dude, you're getting a Dell"
      Gross. Would be less gross I suppose if Sun did it.
      "Dude, you're getting a Sun quad UltraSparc III with gigabytes
      of RAM!" Somehow that has a nicer ring to it.

    3. Re:Kind of ironic by Anonymous Coward · · Score: 0

      Everybody in the PC industry builds commodity hardware, running an OS they don't control, and tries to compete based on marketing and lowest-cost production.

      Look at the HP-Compaq merger. This sort of business plan was sold to investors as a feature. We'll just let Intel and Microsoft do all the work, and we'll make teh money! (Not mentioning that it will take them at least 3 years to hunt down and pinkslip all the remaining freeroaming engineers.)

    4. Re:Kind of ironic by snarfer · · Score: 1

      Everybody in the PC industry builds commodity hardware, running an OS they don't control, and tries to compete based on marketing and lowest-cost production.

      Imagine if they offered an ADDITIONAL OS on the computers, one that does great things with music and video! And imagine further that the OS manufacturer had offered to give their OS for FREE to any large manufacturer that did this!

      In a normal marketplace the computer maker would junp on that opportunity. But when Be offered this, not one computer maker did it. (Well, Hitachi tried...)

    5. Re:Kind of ironic by cybercuzco · · Score: 2
      Everybody in the PC industry builds commodity hardware, running an OS they don't control, and tries to compete based on marketing and lowest-cost production.

      Except for Apple, but then, they arent really PC's, theyre Macs ;-)

      --

    6. Re:Kind of ironic by electroniceric · · Score: 3, Insightful

      I was just reading Bob Young's piece in Open Sources . While it's certainly flush with optimism that now seems naive, he's pretty convincing when he points out that Heinz sells a absolutely replicable product, and still controls 80% of the ketchup market. They've simply built such a strong brand that they define what ketchup should taste like.
      I'd say that Microsoft has built one of the strongest brands in the world, mostly by applying clever and well-branded systems integration (a fact the head of Microsoft research makes no bones about in a recent article in the Economist. Short of drastic legislation (which we just are not going to see under this administration), the only thing that would knock MS out of the catbird seat would be weakening of the brand. (one thing that would probably weaken the brand is interoperability and hence less distinguishability between Windows and Linux). What's surprising is that people don't seem to care about brand when it comes to PDAs and embedded devices, but they sure do on the desktop (after all, people spend a lot of money to BUY new versions of Windows, over and over).
      There's an object lesson to be learned about tech branding as attention shifts from the OS to the embedded devices and web services, and perhaps us Linux-zealots should be clever enough to try to learn from it.

    7. Re:Kind of ironic by hawk · · Score: 2
      >and why I won't buy Dell stock, no matter how well they do


      It's too late, anyway--they're closing. See
      http://www.theonion.com/onion3810/corporation_re ac hes_goal.html


      hawk, who regrets the broken link, but can't fix it

    8. Re:Kind of ironic by Anonymous Coward · · Score: 0

      You've conveniently ignored all the illegal tactics MS has used over the years. Haven't you ever wondered how well they'd have done if they had the competition they were threatened with - and killed over the years? Any company can build a strong brand under those conditions.

    9. Re:Kind of ironic by Anonymous Coward · · Score: 0
  21. Microsoft Who? by Anonymous Coward · · Score: 0

    Microsoft Who? Don't know who you are talking about.

    Linux=OpenSource=Freedom

    1. Re:Microsoft Who? by fmaxwell · · Score: 3, Funny

      Microsoft Who? Don't know who you are talking about.

      You'll find out when you get a job in the tech industry. For now, enjoy school.

    2. Re:Microsoft Who? by Anonymous Coward · · Score: 0

      Sorry bud, Had my fill of M$. Started in the dos day's and could not wait till windows 3.0 came out. Been there done that. I work in the tech industry everyday. It's time for a change. I don't want bill to run my life, and he will or should I say is.

    3. Re:Microsoft Who? by Anonymous Coward · · Score: 0

      Actually, there's plenty of jobs out there that don't rely on MS as the primary OS.

      But then, you still have to deal with the normal users who are sending you e-mail about the e-mail server being down via Outlook. ;)

    4. Re:Microsoft Who? by fmaxwell · · Score: 2

      Had my fill of M$

      Having your fill of them and not acknowledging their existence are two different things.

    5. Re:Microsoft Who? by Anonymous Coward · · Score: 0

      Read between the lines.

  22. Slashdotters Testify! by DickPhallus · · Score: 0, Offtopic

    "Anonymous Coward testified yesterday about the incredible power that Editors wield over discussions concerning Slashdot Policy being talked about in any story. It seems that if an slashdotter does not fall in line the editors and their opinions that they are severely penalized, and can have their account blacklisted."

    --

    --
    Some weasel took the cork out of my lunch.
  23. I'm impressed by petis · · Score: 1
    Gateway also faulted another provision of the new licensing agreement, which requires PC makers to pay a Windows royalty on every PC shipped, even if it didn't include Windows. To top it off, to qualify for market development funds, PC makers have to put a Microsoft OS on every PC. As a result, trying to sell non-Windows PCs, or even PCs without software, is a financial loser for computer makers.


    Man, I've heard of business angels, but this is more like the work of Business Devils. You have to give creds to the guy at MS who came up with this "market development fund" and then made the OEMs agree on it... I'm impressed!

    1. Re:I'm impressed by Anonymous Coward · · Score: 0

      Don't give them too much credit -- they stole the idea from Intel.

      (If an OEM ships all "Intel Inside" PCs for a particular model lineup, Intel kicks back the money for all of that marketing that you see with the Intel logo on it. I guess MS took that a step further and mandated Windows for all PCs, not just those of a specific model.)

    2. Re:I'm impressed by arkanes · · Score: 2

      You know, "market development fund" sounds an awful lot like payola to me. Isn't that illegal, or is it just for the music industy?

  24. I thought this.... by josh+crawley · · Score: 3, Insightful

    I thought disclosure of MS's agreement concerning OEM os'es were corporate secret (blabla fines and revocation of contract). How can Gateway testify if they are bound by NDA's associated to the OEM contract?

    Hell, maybe Gateway is realizing how much a pit Microsoft is when it comes to money. Or maybe it's MS's new contracting agreements ( if no upgrade within 1 year after new product comes out, owe full price).

    It seems that MS is loosing its edge when it comes to controlling corporate powers. For the longest time, MS has made a standard (maybe not the best, but better than 10 types of hardware on 20 OS'es). We just have outgrown them.

    1. Re:I thought this.... by GospelHead821 · · Score: 1

      IANAL, but it is possible that because this is legal testimony, rather than simple public disclosure, that it is exempt from the contracts agreement not to disclose the terms thereof. Just a hunch, mind you. Frankly, if the non-disclosure clause would seem to cover this, I don't think Microsoft would try to push that angle, since it would likely make the clause illegal. And an illegal contract isn't binding.

      --
      Virtue finds and chooses the mean.
      Aristotle, Ethica Nichomachea
    2. Re:I thought this.... by Planesdragon · · Score: 3, Informative

      I thought disclosure of MS's agreement concerning OEM os'es were corporate secret (blabla fines and revocation of contract). How can Gateway testify if they are bound by NDA's associated to the OEM contract?

      Contracts are enforced by the courts. (If MS breaks the contract illegally, Gateway goes to the courts to get them enforced. Same if Gateway breaks, and MS wants their contract-specified fine.)

      Because of this, the courts can say "testify" and Gateway doesn't have a choice. Of course, MS can (and did) ask to have secret data (the exact pricing tree) hidden, and the courts can agree to keep it "off the public record", but it still can come out into the open.

      IANAL, of course.

    3. Re:I thought this.... by gnovos · · Score: 2

      When you testify, I'm pretty sure all those NDA's are moot... If not, what a great way to comitt a crime: Rob a bank and have your hostages sign NDA's!

      --
      "Your superior intellect is no match for our puny weapons!"
    4. Re:I thought this.... by josh+crawley · · Score: 1

      Ahh, I see. And that's also the reason why Apple kicked off that "nearly 18" programmer. The contract wasnt binding.

  25. Microsoft is not out of line.. by Yahiko · · Score: 0

    Why should Microsoft be forced to lose money and/or bend its business practices because someone wants to use another product than theirs. Is it illegal to say "If you dont use my product exclusively I will not give you as much of a price cut/media props/other benefit."

    If Microsoft wants OEM's to use its products exclusively, more power to them. They're not forcing Gateway to use them, and it's not Microsoft's fault that they have a large part of the market share and are a well-known OS. People demand the Windows OS, and people reject it, Gateway and Microsoft can't help that. If Gateway loses customers because they choose to not go with a Microsoft OS or they have to raise prices because Microsoft won't cut them as good of a deal because they aren't using MS exclusively, then tough sh*t. Just because they whine and cry doesn't mean they should get special treatment.

    I'm not Pro-MS (although I know it sounds like it) or Anti-MS, but it just seems to me that if you make a good product and people like to use it, that you should be able to market it in any way you see fit to maximize your profits, because that's the point anyway isn't it? Supply and demand, supply and demand.

    --


    Everything I say is a lie.
    Except that. And that. And that. And that.
    1. Re:Microsoft is not out of line.. by Junta · · Score: 3, Insightful

      I don't know, could you point to another company that does this, checking up to make sure they aren't buying other products and then penalize for it? That is not simply good practice, it is as blatant of an example of anti-competitive you can get. This is leveraging your current dominant market share to raise barrier for entry to everyone else... Pretty much textbook anti-competitive..

      --
      XML is like violence. If it doesn't solve the problem, use more.
    2. Re:Microsoft is not out of line.. by Yahiko · · Score: 1

      If I make a piece of software, and you make a piece of software, why should I lower the price of my software to make it easier for you to come in and sell your software? I get hit two fold: 1) I make less money on every piece of software I sell and 2) You sell more software and I sell less.

      Business isn't about being nice.

      --


      Everything I say is a lie.
      Except that. And that. And that. And that.
    3. Re:Microsoft is not out of line.. by Anonymous Coward · · Score: 0

      make a good product and people like to use it

      More like forced to use it. And when was it ever a good product.

    4. Re:Microsoft is not out of line.. by Yahiko · · Score: 1

      No one grabbed people's wallet's when Windows first appeared and forced them to buy it.

      Spouting off opnion is great, but 'when was it ever a good product' doesn't really make me change my mind.

      --


      Everything I say is a lie.
      Except that. And that. And that. And that.
    5. Re:Microsoft is not out of line.. by Anonymous Coward · · Score: 0

      Dude, Wakeup!

    6. Re:Microsoft is not out of line.. by Anonymous Coward · · Score: 0

      Except the supply is infinite unlike in a real supply and demand situation where there are only so many supply to go around. Microsoft sells Licenses (an agreement of terms) not product.

    7. Re:Microsoft is not out of line.. by Anonymous Coward · · Score: 0

      Right. This would not be illegal if they were not a monopoly. Because the court has ruled they are a monopoly, this sort of behavior is now illegal.

    8. Re:Microsoft is not out of line.. by fredrik70 · · Score: 1

      When you are a monopoly there are different rules you must follow. Indeed if MS was a small little company nad made a deal like this with an OEM, fair enough. BUt now they can basically kill of whole companies with their OEM agreements - no other OS maker will ever get the chance since they don't want to risk their business and marketshare - it all turn into an self-fullfilling evil circle . It stiffles choice and competition.
      /fred

      --
      if (!signature) { throw std::runtime_error("No sig!"); }
    9. Re:Microsoft is not out of line.. by PenguinLord · · Score: 1

      Why should Microsoft be forced to lose money and/or bend its business practices because someone wants to use another product than theirs. Because they have a monopoly stupid! This is the whole point of the trial. The fact that M$ has a monopoly has been proven in court and upheld in appeal. The same goes for the fact that M$ abuses it's monopoly power to lock competitors out of the market place, and to inflate the price of their software. The purpose of this trial is to determine what to do to keep them from continuing these practices.

    10. Re:Microsoft is not out of line.. by J.+Random+Software · · Score: 1

      Should any vendor with an important enough role be able to buy the right to have no competitors?

    11. Re:Microsoft is not out of line.. by swillden · · Score: 2

      I don't know, could you point to another company that does this, checking up to make sure they aren't buying other products and then penalize for it?

      Soft drink manufacturers do a somewhat similar thing all the time. Restaurants, airlines, sports stadiums, you name it, they all get a better price on their Coke or Pepsi products if they sell only one brand.

      In the soft drink world, that's not such a significant problem, though, because there is competition. Smaller companies like RC and Shasta may have some grounds to complain that the lock-in keeps them shut out completely, but consumers still come out relatively okay because the competition between the big boys keeps flavored sugar water innovation up and prices down.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    12. Re:Microsoft is not out of line.. by Anonymous Coward · · Score: 0

      Dude!

    13. Re:Microsoft is not out of line.. by Rude+Turnip · · Score: 1

      No one was forced to buy Cisco products when they first appeared. Now Cisco 0wn5 the router market. However, they aren't taking active measures to punish companies that use alternative products as MS is doing.

    14. Re:Microsoft is not out of line.. by Kierthos · · Score: 1

      Yeah, but damn near anywhere else, if you said "If you don't exclusively use my software on these lines of computers, I will raise my prices, oh and by the way, if you use some other guy's software on some other lines, you still owe me money" you'd get laughed at.

      Business may not always be nice, but this is the equivalent of a mugger working over pre-schoolers.

      Kierthos

      --
      Mr. Hu is not a ninja.
    15. Re:Microsoft is not out of line.. by korgull · · Score: 1

      It should be a little different.
      It should become cheaper when buying more volume.

      This has nothing to do with exclusive use.
      Microsoft punishes their customers even if they would buy the same amount of windows packages as before. That's simply a very nasty thing to do. I guess the large OEMs need to get together and don't go with this kind of marketing stategy anymore. Microsoft can hardly increase prices for all major OEMs. It could affect the windows sales dramatically, which is not what M$ would risk I think.

  26. Moany old Gateway... by Graspee_Leemoor · · Score: 4, Interesting

    The basic message is that MS can't do Jack Shit to OEMs, except of course to force them to pay the proper price for Windows licences, and not receive
    any bonuses.

    This would make the OEMs less able to compete, price-wise with their fellow scum-sucking OEMs.

    Well, boo hoo, why should I care what happens to these unscrupulous box-shifters?

    Look at the facts: extended warranties of doom, badly-configured machines with the wrong drivers installed, corners cut to keep the price down (Tom's did a thing on OEMs recently, pointing out that they like to push the main specs like Pentium 4 1.8!!!! And then not mention the crappy $15 video card etc., which is true), help-lines that don't even when you get through to them, incompetence on all levels....

    Plus, just think- these OEMs aren't doing anything to earn their money- just employing people very little money to assemble pcs, man help-lines etc.

    I know I am going to get modded down as -1 flamebait for this because The Common Man moderates, but seriously, to paraphrase Monty Python: "What have the OEMs ever done for us?"

    graspee

    1. Re:Moany old Gateway... by geekoid · · Score: 2

      What you should relize is that if OEMS can't compete, or that moving away from window doesn't allow the to compete, they will never changes.
      With the current MS Liscensing Scheme, any OEM that sells a PC must give money to MS, and must have MS OS or they lose MS's special prices.

      OEMs SUCK. I totaly agree, but the market will dictate who will survive. Right now they are all realling because it now takes effort to sell PC's. from 96 to 2000, everybody wanted on, very few people had one, now thats changed.
      I think the OEMs should be allowed to compete on all levels so the market can decide what it wants.

      "Plus, just think- these OEMs aren't doing anything to earn their money- just employing people very little money to assemble pcs, man help-lines etc."
      by your own statement, they are doing something. You think help desks, shipping, advertising, and assembly is free?

      I put my own box together, and recommend the larger local "mom and pops" to people.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    2. Re:Moany old Gateway... by TheKey · · Score: 1

      I think everyone is angry at Microsoft (or happy that Gateway is doing this), not sympathetic for Gateway's position. Most people at /. probably have built their on PCs, so they really don't care if Gateway does down the drain.

      However, Gateway testifying is good news, even though Microsoft may punish them for it.

      --
      My Journal - 1,337 fans and countin
    3. Re:Moany old Gateway... by fredrik70 · · Score: 1

      Well, you might not like the OEM, but as you might know does most people out there buy their computers from OEMs, hence it doesn't matter shit what you think of them, since it still gonna help MS stay on top of everyone

      --
      if (!signature) { throw std::runtime_error("No sig!"); }
    4. Re:Moany old Gateway... by dmaxwell · · Score: 4, Interesting

      These problems are at least partly Microsoft's fault. The profit margin for these commodity PCs are almost non-existant. The OEM Windows agreements are secret and negotiated on a company by company basis. If one OEM has marginally better components or QA in it's PCs compared to a competitor then the answer may well lie in the difference between those OEM agreements. To an OEM, Windows is NOT a commodity: it is a single sourced component and Bill has 'em by the balls.

      There's at least one other thing we can blame on Microsoft as well. How about those "Restore CDs" that coincidentally will blow away any other OS partition that is on a machine? Ostensibly, it is because Microsoft is worried about piracy. Yeah, right.

    5. Re:Moany old Gateway... by Anonymous Coward · · Score: 0
      Hmm... I've bought all my computers from a "Mom and Pop" outfit (my cousin's little company, actually), but I was thinking that we are looking at an OEM future because of the CBDTPA (SSSCA) Bill that is going through. I figure that once these new regulations are passed, it will be all over for the little companies. In fact, I'm wondering if you will have to have a license to build computers for sale (or something similar) in case you might build a "pirate" box.

      Other than that, I would have thought the smaller companies, by being more responsive to individual needs, would have the upper hand. Now, though, I'm thinking "New Regulatory Regime == New Cartel" as usually happens.

    6. Re:Moany old Gateway... by orkysoft · · Score: 1

      I have an Aldi PC which came with a restore disk, which I used once I had trashed the FAT32 partition accidentally (FIPS @#%$!), but it didn't touch the Linux partition I had made on the disk. It just formatted the primary partition (hda1) and block-copied everything from the CD in just a few minutes.

      But I agree, it is still bad for people who don't understand about partitions and backups.

      --

      I suffer from attention surplus disorder.
    7. Re:Moany old Gateway... by J.+J.+Ramsey · · Score: 2

      "The basic message is that MS can't do Jack Shit to OEMs, except of course to force them to pay the proper price for Windows licences, and not receive any bonuses."

      MS can also threaten to not sell any Windows licenses to the OEM, which would be devastating to the OEM.

    8. Re:Moany old Gateway... by neo · · Score: 4, Interesting

      Well, boo hoo, why should I care what happens to these unscrupulous box-shifters?

      Because at the end of the day, you wont get anything better until there's no monopoly. Obviously it's impossible for the OEM's to do anything but sell crap because there's no room in the market for competition on anything but price. You can't bundle different software, you can't enhance anything on the hardware side that isn't part of the MS plan. In effect you are competting with other OEM's on the same level and MS gets to say who wins and loses because the only thing you look at is price.

      Take the yoke off these "unscrupulous box-shifters" and watch them start competting on things other than price... like innovation, service, etc.

    9. Re:Moany old Gateway... by jtosburn · · Score: 1

      MS can do a whole lot more than force an OEM to pay full price for each copy of Windows: when Windows 95 was launched, IBM wasn't even allowed to sell it with their desktop machines. IBM had to bend to MS's terms before they could sell machines with Windows. If everyone really does want Windows on their shiny new computers, then if you sell shiny new computers but can't sell Windows, you're toast.

      Imagine if, when Gateway's deal is set to expire, and they're negotiating the next two-year deal (or however long they do them for), and MS says, "Gee, you'd really be helping us out if you didn't see that other OS on any of your desktops. It only makes your support costs go up, having to support two OS's. And you know, the more $ we make, the better deal it is for you, because you'll look great being such a major part of our success. You do want us to succeed, right? Of course, we can always get someone else to sell more for us. I wonder if I have Michael Dell's phone number on me..."

    10. Re:Moany old Gateway... by HiThere · · Score: 2

      The first time I saw one of those disks was quite awhile ago on a Compaq. I believe that the original reason for their existence was so that if the problem was caused by not - pre - installed software, that a reinstall would fix things. I found it vastly annoying, but my sister, whose data got wiped, seemed to think that it was the way that one needed to expect computers to act.

      It's vile and evil, but it probably wasn't originally intented that way.

      --

      I think we've pushed this "anyone can grow up to be president" thing too far.
    11. Re:Moany old Gateway... by spsheridan · · Score: 1

      What Has the OEM ever done for us?

      WHo's Us? If us is the /. crowd.. well, they've probably done nothing. If us .. on the other hand.. is the "standard dumb user" or an IT profesional trying to buy 30 new PC's for the office.. well, they've done alot! Let's talk about cheap prices, single vendor for repairs, onsite calls for some tech issues, reliable delivery (usually).. and all the other bullsh1t that corporate buyers and standard dumb users want.

      These OEMS offer a service that people WANT! If they didn't want the service, they wouldn't ship millions of frickin PC'S a year! It's just YOU that doesn't want their service.. well, and me too.

    12. Re:Moany old Gateway... by Anonymous Coward · · Score: 0

      "What have the OEMs ever done for us?"

      Interesting question.

      No one likes to admit it, but 98% of us that are employed in any Tech industry owe our livelihood primarily to MS, but also to OEM's. Sure, we'd all find employment somewhere, but your current position would most likely not exist.

      As for your 'look at the facts section'...while most of this may be true, what industry Doesn't this apply to? You could just as easily be reffering to Cars, Appliances, Fax machines, Carpet, whatever...

    13. Re:Moany old Gateway... by Anonymous Coward · · Score: 0

      MS can also arrange for that OEM to get its next pre-delivery of Windows, used to do test installs and work out any compatibility issues, very late in the game such that the OEM's PCs have problems when first sold. Bad press is not a competitive advantage.

  27. And what about VA? by lseltzer · · Score: 5, Insightful

    Gateway can assert that Microsoft pressured them, but if there's really a market for Linux desktops then other companies would be offering them and making sales.

    So why did VA stop selling Linux systems? Alleged Microsoft pressure on mainstream vendors not to sell Linux should only have made things better for VA, assuming there really was a market for Linux desktops. But the fact is that there is no serious market for Linux desktops.

    While we're at it, I simply don't believe that IBM could be subject to such pressure, and yet they too have pretty much abandoned the Linux desktop and notebook business. You used to be able to find Thinkpads for sale on IBM's site with Linux on them, but not anymore. Does anyone seriously believe IBM talked them out of this? Isn't the Occam's Razor answer that they weren't selling?

    1. Re:And what about VA? by WetCat · · Score: 1

      Just because VA is not a brandname.
      Gateway, Dell is.
      Mainstream people that could have ordered
      Linux desktops just didn't know about its existance.

    2. Re:And what about VA? by lseltzer · · Score: 1

      Any serious business buyer knew this company existed. It was one of the most famous IPOs of the nut-case Internet era. People knew this company existed and still didn't buy their computers. If you really believe that people didn't know about VA you've got a massive case of denial.

    3. Re:And what about VA? by shadow303 · · Score: 1

      Most people I know that like linux, assemble their own computers rather than buy from a major company. I remember when I was looking to buy a laptop, I noticed that IBM only offered linux on their thinkpads that cost at least $3000.
      Companies don't seem to really commit themselves to preinstalling linux and do a shoddy job with their offerings. When that doesn't work well, they then conclude that their is no market and drop it completely.

      --
      I've got a mind like a steel trap - it's got an animal's foot stuck in it.
    4. Re:And what about VA? by ethereal · · Score: 1

      I think VA failed more because they expanded too fast during the boom times, than because there wasn't a market. There is a market for machines that come preloaded and certified for Linux; it's just not a Dell-sized market. If VA had stayed small (or at least stayed the appropriate size relative to demand) they'd still be fine. Granted, the server demand did peak and then recede somewhat, but the demand is still there even now.

      Really, it's the pressure on the OEMs to not ship dual-boot systems that's the real issue. By shipping a ~free Linux distro on another partition, they could have built consumer knowledge of that product as an alternative to Windows in a very cheap and easy way. By acting to effectively prohibit dual-boot systems, Microsoft has essentially removed the last way that the already low-marketing and geek-oriented Linux market could break into the consumer mainstream.

      --

      Your right to not believe: Americans United for Separation of Church and

    5. Re:And what about VA? by lseltzer · · Score: 2, Insightful

      So now remind me how this is Microsoft's fault...

    6. Re:And what about VA? by Detritus · · Score: 3, Interesting

      IBM has already had a taste of Microsoft's wrath. Microsoft came very close to forcing IBM to pay full retail price for the Windows 95 licenses that IBM needed to ship a competitive PC. That would have been a huge cost disadvantage for IBM. Microsoft was pissed off about IBM shipping PCs with OS/2 and Lotus SmartSuite, a competitor to Microsoft Office. From published reports, the OEM contract negotiations were very nasty. Microsoft's attitude was that IBM was not a "team player" if they bundled any software that Microsoft viewed as a threat to their own products.

      --
      Mea navis aericumbens anguillis abundat
    7. Re:And what about VA? by WetCat · · Score: 1
      Any serious business buyer knew this company existed. It was one of the most famous IPOs of the nut-case Internet era. People knew this company existed and still didn't buy their computers. If you really believe that people didn't know about VA you've got a massive case of denial.
      I am not arguing that people knew about that company.

      I just want to say

      • Knowledge about the company existance doesn't necessary mean that its product is a brand name. Brand name means at least history of usage that proved quality of products. Dell, Gateway produce brandname computers in this sense, VA Linux does not.

      • Business people aren't mainstream people. Linux will come to desktop when home computer buyers will adopt it.
    8. Re:And what about VA? by lseltzer · · Score: 1

      I've never believed the OS/2 stories, but that's just one company's word against another's. As for Lotus SmartSuite, IBM has always shipped it with their Windows computers and still does.

    9. Re:And what about VA? by Anonymous Coward · · Score: 0

      "Oh, yeah, VA, they do that linux stuff for servers, don't they?"

      People still had no idea what the product was, just like with lots of other IPOs during the time of madness.

      Not that I think there ever was much demand for a non-MS "solution" on the desktop; I wonder, though, if somebody coming along who could offer quality Intel/AMD based desktops for $100 cheaper or so, could now make a dent.

    10. Re:And what about VA? by Anonymous Coward · · Score: 0

      You can spin that both ways. IBM actually was holding OS/2 out to get a substantially better deal on Win95 that other OEMs were getting. By then they were more interested in OS/2 as a bargining chip than as a platform.

      IBM's a big boy with lots of lawyers and lots of dirt on Microsoft from the old days. I bet they still get a better/different deal than the screwdriver boys like Gateway.

    11. Re:And what about VA? by Anonymous Coward · · Score: 0

      The VAST majority of computer buyers are small businesses and individuals.

      1. Far more people are employed by small business than big.

      2. People who work for big business have their own home computers.

      And most people know nothing about their computers. They go to CompUSA, surf Dell or Gateway and buy whatever they can afford.

      Scythe

    12. Re:And what about VA? by Hooya · · Score: 1
      for the masses, linux is an unknown. Windows is a known.. Dell is a known, IBM, Gateway... all known. VA unknown.

      When people think of buying computers they first think of the supplier they know. then they go.. 'ahaa.. the supplier also offers this thing called linux; wonder what that is.' and then they 'discover' linux. once they discover linux they go 'ooohh, this vendor specializes in shipping linux -- it's called VA.' they discover VA.

      In other words, I could argue, that MSs' OEM tactics killed VA since people could no longer discover linux by way of popular vendors and in turn could no longer discover VA. but i'm not going to. I will concede VA had to drop out of the hardware business because of various shortcomings of their own.

      What I will argue is that I have known plenty of people that tried running a shop selling boxes with windows. none seem to have made it. guess what? they were installing windows on those boxes. going by your arguement that VA couldn't sell boxes with linux because there was no market demand for linux, i would have to conclude that the reason these people failed was because there was no market demand for windows. epiphany!

      The reality is that people running these shops don't get the same preferential treatment as Dell and what have you. they have to pay full price for windows. where they try to make any money is on the hardware and service. but can you really undercut a mass-merchant such as Dell on the hardware enough to offset the inflated price of the software? compounded with the fact that the hardware is being sold at a very nominal margin by these OEMs? this leads us to another interesting question. if the OEMs are busy undercutting each other with the hardware and the margin is down to a minimum on the hardware where do they make their money? software of course. now how would a vendor make more money than it's competitors on software they don't produce? they get it at a 'preferential' price.

      that hurts me as a consumer because now i can't go to the best hardware maker for the price (software being the same), i have to go to the 'most preferred' OEM to get a decent price. innovation my ass.

      sorry i'm ranting. but it sucks that i can't get linux on the hardware i want. ya, ya.. i can install it after. like i did on this toshiba laptop that i'm using right now. but i had to jump thru hoops to get that going -- after paying the MS tax. makes me mad. un-karmafy me all you want. i'm used to paying taxes.

    13. Re:And what about VA? by Anonymous Coward · · Score: 0

      VA failed because most companies run mixed environments and have a relationship with a server vendor that they like. As soon as Compaq, Dell, and IBM started shipping supported Linux server systems, it eliminated the need for a vendor that could only offer Linux support while ignoring the other 80% of the server market (NT, NetWare, SCO, etc).

      They also blew their wad buying lots of websites and doing software R&D that didn't translate into improving their machines wrt the competition.

    14. Re:And what about VA? by C0vardeAn0nim0 · · Score: 2

      I think VA failed more because they expanded too fast during the boom times, than because there wasn't a market.

      this is true.

      http://penguincomputing.com/ is still open for busines selling linux only servers/workstations.

      --
      What ? Me, worry ?
    15. Re:And what about VA? by JordanH · · Score: 5, Interesting
      • So why did VA stop selling Linux systems?

      Because VA had to compete against price-leader Dell and others selling systems with Linux loaded on them. It's possible that MS only tolerated Dell selling Linux as long as VA was still out there.

      This article is interesting in this regard. And I quote:

      Compaq was also mentioned in other memos, with Microsoft taking the line that OEMs should "meet demand but not help create demand" for Linux.

      So, at one time, it was OK with Microsoft for the OEMs to meet demand, but not to push Linux. Then, later, they clearly pressured Gateway and Dell to drop it completely.

      VA Linux no longer out there pushing Linux? Another highly visible Linux company down...

    16. Re:And what about VA? by Nessak · · Score: 1

      I don't know why this is true, but IBM charged *MORE* for laptops with Linux pre-installed, not less. I would be happy to pay an extra $50 for redhat if the computer costs a total of $100 less since there won't be MS tax. But the fact was, the thinkpads cost most more. No Linux user would pay more to get something they could install for free, so IBM didn't sell linux machines, and they stoped supporting Linux on the consumer-end side.

      Why they charged so much is beyond me, but that is the reason why IBM didn't make money off Linux. Not becuase of MS.

    17. Re:And what about VA? by IamTheRealMike · · Score: 2
      Hmm, but how well do you think a machine with dual-boot linux on that cost say $60 more for another OS would do? Most people would look at it and say - I already have 1 OS, why should I pay for another included in the price of the machine?

      What might be interesting is if they could do this with say Mandrake, but when you started using it there was pressure to sign up to the Mandrake Club. People get a whole OS to play with, if they like it they join the club and contribute to its development, if they don't they zap it.

    18. Re:And what about VA? by swillden · · Score: 2

      Hmm, but how well do you think a machine with dual-boot linux on that cost say $60 more for another OS would do?

      Why would the dual-boot machine cost $60 more? It should cost $0 more, or maybe $5-10 more (to cover the cost of installing the second OS and the cost of making sure all of the drivers are installed/configured correctly).

      If you gave people an alternative for an extra $10, I think plenty of them would take it. If you gave it to them for $0 and provided an easy way for them to "recover" the "wasted" space in case they decided they didn't need the other OS, I think nearly everyone would take it.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    19. Re:And what about VA? by swillden · · Score: 1
      My understanding, from stuff I've read in the open press, is that IBM gets a *worse* deal from MS than Gateway, Dell, etc., because IBM won't agree to the more restrictive licensing agreements. That's the main reason why IBM's PCs have always been slightly more expensive.

      Note that while I work for IBM I have *no* inside knowledge about this subject (I've never even met anyone from the PC division).

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    20. Re:And what about VA? by weinerdog · · Score: 1

      So why did VA stop selling Linux systems? Alleged Microsoft pressure on mainstream vendors not to sell Linux should only have made things better for VA, assuming there really was a market for Linux desktops. But the fact is that there is no serious market for Linux desktops.

      This goes right to the heart of the whole issue. There is no serious market for Linux, BeOS, OS/2, or any other Intel desktop operating system. This is not because Windows is so close to OS nirvana that only the great Microsoft can improve upon it, but because Microsoft has managed to erect barriers around the market so high that it is extraordinarily difficult for anyone to gain any sort of serious market share, no matter how good their product.

      Restricting Microsoft-OEM contract provisions won't, by itself, magically resurrect Be, re-kindle OS/2, spark ferocious demand for Linux, or allow a new operating system to grab hold of the market. But a reasonable set of measures designed to tear down existing barriers to entry and keep them down long enough for alternatives to establish themselves should stabilize the situation, re-introduce real innovation and quality into the operating systems and applications markets, and return real choice to the market.

      From the standpoint of a consumer desktop system, both Windows and Linux are abominations. Neither one is designed to do what the end user wants. One will let you do anything you want, but only if you can figure out how. The other won't let you do anything that its creator disapproves of. One ships broken and has to be assembled, the other comes pre-assembled but quickly breaks. Both may appeal strongly to certain user groups, but in an OS market with properly restored competition, neither Windows nor Linux, in their current forms, would hold much market share.

      --
      There's no such thing as Scotchtoberfest!
    21. Re:And what about VA? by JLester · · Score: 1

      I think VA lost out because of pricing. I spec'd identical dual-processor servers from VA, Dell, and Compaq a couple of years ago. VA was several hundred dollars higher than Dell and Compaq. This was the Dell Poweredge and Compaq Proliant lines, not their commodity desktops, so they had excellent hardware (probably better than VA's was in most cases). I ended up going with Dell for that purchase. We've since loaded several Proliants with Debian Linux and have been very happy with them. I just couldn't justify the higher price from VA.

      Jason

      --
      "FORMAT C:" - Kills bugs dead!
    22. Re:And what about VA? by Anonymous Coward · · Score: 0

      Why would the dual-boot machine cost $60 more?

      For a big vendor, the technical support costs outweighs the OS cost. Having another free OS is great, but if it causes the users to call techsupport (say they booted into the wrong OS and couldn't get out) even once, there goes the profit.

    23. Re:And what about VA? by Anonymous Coward · · Score: 0

      So Microsoft was a monopoly when they were shipping Windows 3.1, everyone demanded Windows on their computers and IBM had to follow suite?

      I really don't remember that many people wanting Windows 3.1 on thier machines, or of Microsoft controlling the market that totally back then. Big yes, but controlling?

      And if they were not a monopoly then, where their actions illegal?

    24. Re:And what about VA? by Tony-A · · Score: 2

      It's always Microsoft's fault.
      One of the side effects of being a monopoly.

    25. Re:And what about VA? by mpe · · Score: 2

      * Business people aren't mainstream people. Linux will come to desktop when home computer buyers will adopt it.

      This is just nonsense. Business (and other corporate usage such as education and government) makes up the bulk of computer purchase and use.
      Windows wound up in people's homes becuase it was used at work, not the other way around. Even though most versions of Windows are more suited to home usage than business usage.

  28. M$ Bride by vandelay · · Score: 1, Funny

    My name is Anthony Fama, you made me put windows on every machine we sold, prepare to die!

    --
    I am going to re-invent the wheel, and this time I will make it round!
  29. This seems to be standard Microsoft practice. by zapfie · · Score: 5, Informative

    For those who have not read it, I would suggest reading Sony's comments regarding Microsoft's licencing of Windows. This is from Sony's submitted commments to the Microsoft Antitrust case. If you think being an OEM and having to include Windows on every PC is bad, imagine being an OEM and knowing that it is possible that "Microsoft [could] use its monopoly power to force its OEM licensees to give up intellectual property rights."

    --
    slashdot!=valid HTML
    1. Re:This seems to be standard Microsoft practice. by Anonymous Coward · · Score: 0

      Given the general crappiness of most OEM computers it is debatable whether there are any intellectual property rights pertaining to their systems other than as a mechanism to attempt to conceal the general crappiness of the systems.

  30. Gaming to get off of windows by Red+Weasel · · Score: 2, Interesting

    I still think that the fastest way to begin switching the masses to Linux would be for the Game manufacurers to release games for Linux first.

    How many times have you seen the latest, hottest most awesome game ever and then notice that the MS version is available but the Mac and Linux version is 2 to 3 months away(or not available at all)?

    Now how many people out there actually wait for that linux version vs. loading it onto your windows partition.

    Now imagine that Duke Nukem forever or Diablo 4 were coming out. But wait, only the linux version is available just now (shipping with a trimed down distro of course) but don't worry the MS version will be along in a couple off months.

    If you were a game geek would you wait?

    --
    ..which just shows that the human brain is ill-adapted for thinking and was probably designed for cooling the blood-T P
    1. Re:Gaming to get off of windows by Anonymous Coward · · Score: 1, Funny

      If you were a game geek would you wait?

      Yes ... because it would take 2 months to get Linux running on my hardware and Windows XP is running perfectly.

    2. Re:Gaming to get off of windows by 0xB · · Score: 1

      Why do game manufacturer's care about linux?

      They're in the business of selling games. Games sell best to Windows users. Therefore games manufactures sell games to Windows users.

      There is no incentive for their games to be delayed, to promote an operating system in which they have no interest?

      Or are you proposing legislation ... "it is illegal to sell software for Windows before the linux version is ready" ? Such micromanagement of society by government is ridiculous and leads to more problems which need to be micromanaged.

      --
      0xB
    3. Re:Gaming to get off of windows by Anonymous Coward · · Score: 0


      If you were a game geek would you wait?


      If you were a game company producer, would you want to loose the ability to write games for Microsoft? Access to undocumented OS calls is by the good grace of MS's permission. If they are displeased with your activities ... you are screwed.

    4. Re:Gaming to get off of windows by Dephex+Twin · · Score: 2
      I still think that the fastest way to begin switching the masses to Linux would be for the Game manufacurers to release games for Linux first.

      I guess technically that could be true, but you might as well say that people would migrate to Linux if Adobe Photoshop 8 came out in Linux first. Why in the world would this happen? Is there even a point to imagining scenarios like these?

      mark
      --

      If you want to make an apple pie from scratch, you must first create the universe. -- Carl Sagan
    5. Re:Gaming to get off of windows by chrish · · Score: 1

      One massive flaw in this suggestion... nobody (where nobody = "not enough people to make it worth the expense") buys games for Linux (or BeOS or $your_pet_os).

      Look at Loki (bankrupt) and Wildcard Designs (BeOS game developer, also bankrupt).

      Think about development costs and (here's the biggie) tech support costs.

      Most developers don't even do MacOS versions and that community's managed to keep several Mac-only game developers in business over the years.

      - chrish

      --
      - chrish
    6. Re:Gaming to get off of windows by Anonymous Coward · · Score: 0

      I still think that the fastest way to begin switching the masses to Linux would be for the Game manufacurers to release games for Linux first.

      That should probably have been modded insightful. If unrealistic. But as long as we're engaging in fantasy, I would suggest a cd full of porn with each distro as well. Good games, porn, stock tracking software with several free trades at an online broker, easy to set up and use p2p music grabbing software... games, sex, money, music, ... too bad we can't work drugs into it. But it might be enough to get over lame criticisms like "but it doesn't do microsoft file formats..." Maybe.

    7. Re:Gaming to get off of windows by Rellon · · Score: 1

      This is sorta funny because I was just thinking along these lines a few weeks ago. Let me explain.

      I was in the Sunnyvale Fry's store a few weeks ago when I noticed that they were moving around some aisles in the software section. I didn't pay much attention to it until a few days later when I returned and noticed something, the area for PC games had shrunk by almost two aisles! Do you want to know what had replaced those two aisles of PC games? Console games. Seems a bit ironic doesn't it?

      The reason that this seems so significant to me is that gamers seem to drive alot of the cutting edge advances in hardware (Faster CPU & GPU for higher frame rates/realism) and yet some seemingly pretty decent games are coming out on Xbox and other consoles ONLY or several months ahead of the PC version (Unconfirmed rumor of a couple of id games being Xbox only has been floating around).

      --
      "An Ye Harm None, Do What Ye Will" Wicca Rede
    8. Re:Gaming to get off of windows by Anonymous Coward · · Score: 0

      XP work's with less hardware than linux. Shit I cant even use my cd-burner with XP.

    9. Re:Gaming to get off of windows by Anonymous Coward · · Score: 0

      I think at the least, uber gamers who shell out $400 for the latest video card like it's nothing would have no problems with buying a 20gb drive and slapping Linux on it just to play new games first.

      The problem is that the first companies that do this will be committing suicide, because most gamers aren't of the uber-mad-box variety, and they'd be pissed.(tm)

    10. Re:Gaming to get off of windows by Anonymous Coward · · Score: 0

      Yeah I can't get my MFM controller and my floppy-tape drive running with XP. Linux rules!

    11. Re:Gaming to get off of windows by Anonymous Coward · · Score: 0

      Anyone remember the Q3A demo? It was linux only, and a large portion of mirror sites were swamped with people downloading linux distros only to play Quake.

    12. Re:Gaming to get off of windows by Grue_Food · · Score: 1

      I agree wholheartedly.
      Until recently, I only ran Linux as a hobby, on a dual boot system. After running RTCW on Linux and seeing a VAST improvement in FPS, I now rarely ever boot into Windows.

    13. Re:Gaming to get off of windows by jkusters · · Score: 1
      I still think that the fastest way to begin switching the masses to Linux would be for the Game manufacurers to release games for Linux first.

      This would never happen! No sane company right now would have a business model that had deployment on a non-mainstream platform as the primary business strategy. You'd never get investment! Besides, if you did, all of the geeks would call for the game to be released in open source and for free. Games are not cheap to produce, so no company with sane management is going to want to invest that kind of money with no hope of return on that investment.

      The only way this dream could come true is if someone created a "killer app" game in their spare time in their garage. That might have worked once, but these days the popular games are too big for one person to code in a reasonable amount of time by themselves.

    14. Re:Gaming to get off of windows by Anonymous Coward · · Score: 0

      Of course I'm not waiting ... that's why I'm running the Linux version of Nethack 3.4.0!

      Seriously, your view of the world is messed up. Game companies are in it for the sales, so they'll sell on whatever platform sells. If you can figure out a way to do this better than Loki, go for it.

    15. Re:Gaming to get off of windows by Rakarra · · Score: 2
      I still think that the fastest way to begin switching the masses to Linux would be for the Game manufacurers to release games for Linux first.

      I agree. A few points:
      There was a time when almost every game was released for 5 or more platforms.. the PC/PCjr, AppleII, Commadore 64/128, Amiga, Atari, and so forth. I can still look at the game advertisements in some of my old "Family Computing" magazines and many of them had 6 screenshots -- one for each platform. These were games that were ported not just to different operating systems, but to different architectures. I'm not a game designer, so I don't know how much games these days are tied closely into Windows-specific calls, but it seems to me a lot of code could be shared since you're dealing with the same hardware. Are games just so much more advanced now that this isn't feasible, or is there just no demand? (Sadly, probably the latter)

      I have both Windows and Linux machines, yet I buy all my games for Windows. (In fact, Turbotax and gaming are the only things that Windows machine has done for the last year) Sometimes I'll see a game released for Windows and Linux, but still I'll get the Windows version. Why?

      • Sometimes the main game will be released for Linux, but add-ons won't be. Heroes of Might and Magic III was released for Windows and Linux. But was the Armageddeon's Blade add-on available for Linux? Shadow of Death? Any of the milking-the-franchise spinoffs? If I want to play the game, I can buy it for Linux. If I want to play the entire game, I have to get the Windows version.
      • Contracting out to another company to make your Linux version of a game only works if the original version of the game is going to be the only version of the game (for example, Final Fantasy VII). By contracting out, often you'll miss the add-ons, but also the updates. Assume that the game is multiplayer and isn't terribly well-designed or tested (such as any of Blizzard's games). Say Diablo 2 is released with a Loki port. A trade hack bug strikes, a month later Blizzard comes out with a new patch -- do you think they'd have worked well with Loki to get the patch out for both platforms at the same time? I doubt it. So the Linux gamer misses out on bugfixes as well (though it wasn't till the last few years that serious bugfixes in PC games were even necessary *grumble*)
      So because all the content was available for Windows, my Windows machine got the gaming hardware (the Linux one didn't even have a good 3D graphics card until very recently). Without the hardware and since full versions of titles were only ever released on Windows (with very very few exceptions), that's why I bought my games for Windows.

  31. "waist side"? by Anonymous Coward · · Score: 0

    You sure that's where it's gone?

  32. The settlement should require PCs w/o a MS OS by esteban666 · · Score: 3, Informative

    I'm currently looking for a new PC and have found that no major manufacturer (Dell, IBM, Compaq, HP) will sell a PC without WindowsXP. I knew Dell *was* installing Red Hat, but apparently only for business systems. You would think that at least IBM, who are backing Linux, would offer a PC without Windows, but no. I'd be happy if the settlement gave the manufacturers the freedom to provide PCs with OSs other than MS or even without an OS. I don't feel like paying for MS software that I'll never use.

    --
    "Just because you have a collection of porn of a particular girl does not make her your girlfriend", KingJoshi.
    1. Re:The settlement should require PCs w/o a MS OS by David+Kennedy · · Score: 1

      I've hit the same problem; I'm a software person, always have been, always will be. I can't build my own machine without help, but I know more than the average consumer in as much as I don't want to pay for a DVD drive, speakers, fancy keyboard etc. I want the box. In the same way that I don't need speakers I don't need, or want, WindowsXP. Can I find anywhere that is selling commodity PC, as opposed to commodity Windows boxes? Nope.

      That's the number one core argument for competition. Why must I pay for a product I do not want?

    2. Re:The settlement should require PCs w/o a MS OS by clontzman · · Score: 2
      Can I find anywhere that is selling commodity PC, as opposed to commodity Windows boxes? Nope.

      Sure, there are companies like AccessMicro/McGlen or mwave.com that will happily build whatever box you want with no OS. They've been doing it a long time and if that's what you want, they'll do all the legwork for you.

      Why do I get the distinct impression that people just like to complain?

    3. Re:The settlement should require PCs w/o a MS OS by DrCode · · Score: 2

      Look in your phone book or local computer rag. Lots of discount stores will sell you exactly the parts you want, then put the whole thing together for a nominal cost, like $2, or even free.

    4. Re:The settlement should require PCs w/o a MS OS by waddgodd · · Score: 1

      hell, look at wal-mart.

      The Seattle P-I has a story about it

      --
      Just because you're paranoid doesn't mean they aren't out to get you
    5. Re:The settlement should require PCs w/o a MS OS by Anonymous Coward · · Score: 0

      I'm currently looking for a new PC and have found that no major manufacturer (Dell, IBM, Compaq, HP) will sell a PC without WindowsXP.

      It's worse than that!

      Try to buy an Apple computer with Linux on it!

    6. Re:The settlement should require PCs w/o a MS OS by 0x0d0a · · Score: 1

      Apple would be fine with selling Linux boxes (as long as it didn't result in costly support fees for them), especially if it expanded their market instead of eating away from their current MacOS users. Most of their profits are from hardware. OS development is pretty much a sunk cost.

    7. Re:The settlement should require PCs w/o a MS OS by Anonymous Coward · · Score: 0

      I'm sure Apple's business plan predicts that each Mac sold will result in the future sale of something like 1.5 $99 OS upgrades. The development is a sunk cost, but they need to maximize the return.

    8. Re:The settlement should require PCs w/o a MS OS by Anonymous Coward · · Score: 0

      NICE! I don't care for either company, one looks to rape the digital world, the other looks to rape the physical world. Should I support the company that is a monopoly or the one that destroys America by killing local competition? I know, I'll move to France and order my computers from walmart.

    9. Re:The settlement should require PCs w/o a MS OS by Oblio · · Score: 1

      Try going through the "business" links on the web stores rather than the "consumer" links. They often sell the same products with more choices.

      --
      Pax -- Ob
    10. Re:The settlement should require PCs w/o a MS OS by ansible · · Score: 2

      Yes, but what about integration testing?

      I have, in the past, built my own PCs from parts. Most of the time it was great, however I ran into glitches here and there. Like when I wanted use a RAID controller on an older fileserver machine. Turns out the PCI card required PCI 2.1, and the mobo was 2.0. Bomb-o!

      I now prefer to buy pre-built system that have had their components tested together, and has been through a burn-in period. You pay extra up front, but it's worth it.

      It would be really nice to buy PCs from people like Dell without OS software, or with Linux installed. Until then, I'll be shopping at places like Penguin Computing.

    11. Re:The settlement should require PCs w/o a MS OS by Anonymous Coward · · Score: 0

      yeah, they are called pc-kits and have been around for years. Try pricewatch.

    12. Re:The settlement should require PCs w/o a MS OS by powerbarr · · Score: 1

      Took me a couple minutes on HP website to configure a vectra with Mandrake. Don't know about others makers, but the business computers have the choice of operating systems. XP comes default, but you can choose others when you do all your specific configuration.

    13. Re:The settlement should require PCs w/o a MS OS by AntiNorm · · Score: 2

      I don't feel like paying for MS software that I'll never use.

      You may not have to. See here.

      --

      I pledge allegiance to the flag...
      of the Corporate States of America...
    14. Re:The settlement should require PCs w/o a MS OS by David+Kennedy · · Score: 1

      Thanks for the pointers, however, it's still not a viable option for me to run downtown (in the UK) and return with a Windowless computer.

      Everything I can buy on the highstreet is either a Mac or a Windows PC. While I realise that there are tailored services they suffer from one problem - I can't walk in and ask for help. Remember I don't know what I want. I wouldn't know DDR if it bit me.
      All I want is a no-frills, quiet PC that I can slap Linux and a few compilers onto to play. I'm not stupid, I'm a professional programmer. What type of power-supply I want is as relevant to me as it is to my Dad. I don't want to know, I want someone to help me out by selling me something.

      And no, I don't just like to complain.

    15. Re:The settlement should require PCs w/o a MS OS by Anonymous Coward · · Score: 0

      I believe Sears offer a PC without any OS installed... however according to this artical there is a MS royalty on all PCs, therefore a portion of the price still goes to MS. Shit, how do these guys get away with this? They were ordered before to stop the "one PC, one license" practise and they are still doing it now.

  33. The extent of things by IpalindromeI · · Score: 1

    It's kind of scary when you read about things like this and you realize the extent to which Microsoft has woven themselves into this entire industry. And beyond that, the extent to which they'll use that power to keep themselves on top. Instead of just making a superior product and marketing it, they use strongarm tactics such as these to cripple anyone who annoys them. Even hardware vendors aren't safe, as Microsoft begins to grow paranoid about its marketshare, especially in places where they can't fool people into believing their products are good a choice, such as the embedded market. As they realize missed opportunities elsewhere, they'll start tightening their grip on current ventures just to let everyone know who's still in control. I think Microsoft's greed will ultimately be detrimental to the very control they're trying to exert, as companies in that grip will realize that the benefits no longer outweight the costs of being choked, and will find ways to break free.

    --

    --
    Promoting critical thinking since 1994.
  34. Gateway advertisment by AVee · · Score: 1

    I got a big Gateway ad about the Gateway 500SE, 'Broadens your horizon' it said. Combined with the article i thought it would 'broaden my horizon' by loading a nice linux distro by default, but nope. The minimum possible amount of software was WinXP home AND MS Works.

    Now that makes me wander, Gateway testified agains MS without the fear of loosing there OEM deal, but on the other end they still follow the rules of MS. The same is true for some of the other parties that testified in the case.
    I would think that now is the time to do the things they want. It will be very hard for MS to act agains it with all those eyes on this case. Why don't they dare to try out what happens when they start selling OS-less or linux PC now?

    1. Re:Gateway advertisment by ryanwright · · Score: 2

      AND MS Works

      Yeah, WTF is up with this, anyway? When I bought my first computer over 6 years ago from Gateway, they forced me to buy MS Office with it. I didn't get a choice! It came with Windows 95 and Office 95 and if I didn't like that, tough.

      Back then, I didn't care, but now, it pisses me off...

      --
      -Ryan, with the unoriginal sig
  35. Well I'll be by geekoid · · Score: 2

    damned, gateway did something I like!

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  36. It probably would help if I mentioned by Anonymous Coward · · Score: 0

    That Gabe works at microsoft...

  37. oops, my bad. try this... by Graspee_Leemoor · · Score: 2

    Sorry- didn't realise that "plain old text" eat angle brackets. See it *was* funny originally...

    "If you saw a Britney Pepsi commercial followed by a Britney Coke commerical..."

    A Britney Coke commercial:

    Britneeeeee: *SNNNNNIIIIFFFFF!* Ah!

    *pause, drumbeat drumbeat drumbeat*

    "Hit me baby, one more time!"

    graspee

    1. Re:oops, my bad. try this... by Anonymous Coward · · Score: 0

      Uh. sorry nope. wasn't funny. certainly not worth using your +1 for.

      And I think you mean "On" instead of "At" in your sig.

  38. Their own fault by TheGreenLantern · · Score: 5, Insightful

    You know, Microsoft doing this sort of thing is certainly VeryBad(tm), but it's nobody's fault but Gateway, Dell, and all the others that it happened.

    You really have to think about how things came to be this bad. Way back in the old 3.x days, if MS would have tried to pull something like this in the licensing, the OEM's would have told them to take a flying leap and installed OS2. So of course they gave the OEM's licenses dirt cheap, and probably a whole bunch of other things to get them to install Windows by default.

    Ever heard of looking a gift horse in the mouth? Did these OEM's think Microsoft was doing this out of the goodness of their hearts? Of course not, they didn't think about it at all. All they saw was the bottom line.

    Fast forward 5 years when the entire country is hooked up to Windows for life support, in part, I might add, to the OEM's willingness to throw Windows out there with every computer simply because they were getting a hell of a deal. Now they can't tell MS to take a flying leap, so of course MS is there to "restructure" the licensing deals. But is this MS's fault, or is it the fault of the OEM's for being greedy, and getting burned by it. Depends on your philosophy on life I guess: Is it the drug dealer's fault for selling crack, or is it the addicts fault for trying it?

    --

    It hurts when I pee.
    1. Re:Their own fault by josepha48 · · Score: 2
      "Fast forward 5 years when the entire country is hooked up to Windows "

      Well not the whole country. I only use windows at work and maybe one a month at home. Linux and BSD are great alternatives to those who can live withouth Office.

      What I find a real shame is that instead of complaining about having to ship with windows, they should try shipping with both Linux or BSD and windows. Then they will be giving the users a real opportunity to choose.

      One of the reasons that BE failed was that it did not have a big enough company behind it that sold preinstalled be systems. Dell and gateway used to sell Linux on their computers, and I think Dell still does on servers, but to many people are hooked to office and NOT windows. This is why I really think that if Mac were to port carbon and cocoa dn its gui to intel and compete with M$ on PC hardware it would be a true alternative to Windows that many would probably switch to. Assuming M$ would develop office on OS X.

      --

      Only 'flamers' flame!

    2. Re:Their own fault by james_shoemaker · · Score: 1

      Actually they did pull this kind of thing, you got a great deal on MS-DOS if you pre-installed windows 3.1 (to the level that MS-DOS+Win 3.1 was cheaper than MS-DOS alone).

    3. Re:Their own fault by Rude+Turnip · · Score: 1

      "One of the reasons that BE failed was that it did not have a big enough company behind it that sold preinstalled be systems."

      Are Dell and Hitachi big enough for you? They were lined up to sell systems with BeOS in a dual-boot fashion with Windows until MicroSoft threatened them with retaliation (via licensing fees probably). That's why Be is suing MS in a civil case.

    4. Re:Their own fault by JamieF · · Score: 2, Insightful

      The reason Be failed as a dual-boot option is that Microsoft forced the OEMs not to! Read the lawsuit Be has filed against Microsoft. Microsoft also strongarmed OEMs (Dell) not to ship Linux at all, even as a single-boot option on servers. Microsoft uses whatever leverage it has to get its way, and since it has a monopoly, some of their tactics illegal. They do it anyway.

      It's not the OEMs who aren't giving users the opportunity to choose. They would love to sell more PCs by selling to folks who want FreeBSD and Linux and OpenBSD and BeOS preloaded. That's a competitive differentiator and they'd love to have that kind of offering. Their hands are completely tied by Microsoft as to what they can put on the PCs they sell. The only option they have is to drop Windows entirely and ship ONLY Be, Linux, or FreeBSD, and you can ask VA Linux, I mean, VA Software Corporation, how well that worked.

    5. Re:Their own fault by geekoid · · Score: 2

      "Way back in the old 3.x days..."
      they where doing it in the 3.x days.

      It use to be easy to sell computers. now that has gotten tight, there looking for alternative ways to sell there PCs, and that means they need to let the market drive them, that means alternative OS's.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    6. Re:Their own fault by Bagheera · · Score: 2

      I'm sure there's some truth to the OEM's having gotten themselves in this position, but I seem to remember that this is exactly the sort of thing that got M$ in trouble with the DoJ in the first place: forcing OEM's into contracts that would be illegal in any other industry. eg: "You pay us n dollars for every machine you ship, whether it has our OS or not, or you can kiss off your OEM discount."

      The OEM's are already operating on the edge with each box they manufacture. In the commodity world, a $10 difference in price is enough to put a consumer onto another brand. The OEM's can't risk losing their discount when it translates directly into sales. That's the "illegal" part of the M$ Monopoly - their using their power to force other companies to toe their party line.

      I have to hand it to the gateway folks for being willing to testify - and risk having M$ find some loophole to yank their OEM discount.

      Now, if Gateway hadn't gone to a pure Intel lineup...

      --
      Never attribute to malice what can as easily be the result of incompetence...
    7. Re:Their own fault by MillionthMonkey · · Score: 3, Informative

      What I find a real shame is that instead of complaining about having to ship with windows, they should try shipping with both Linux or BSD and windows. Then they will be giving the users a real opportunity to choose.

      Microsoft specifically prohibits OEMs from doing this. Dual boot machines are expressly forbidden. If an OEM ships a dual boot machine, it has to be Linux on one partition and BSD on the other (or Be and OS/2, or whatever). Furthermore, selling machines preconfigured with an alternative OS (dual boot or not) is the easiest way to get Microsoft to yank your license.

      I don't know how Dell got away with selling Linux machines at the same time it sold Windows boxes. Apparently they've been bitchslapped back into submission.

      Anyone who has been following the issue knows that "giving the users a real opportunity to choose" has nothing to do with it. No monopoly here folks, move along. The nation's antitrust laws are no longer enforced with anything more than wrist slaps, because of an ideological fetish for "market based solutions" to everything, along with a blind spot for markets that have been broken by monopolies and cartels. With the Sherman Act out of the way, Microsoft's next problem will be the RICO laws. I can only assume these will be adjusted by law to apply only to individuals and not corporations.

    8. Re:Their own fault by Anonymous Coward · · Score: 0

      1) All of these rumors of major OEMs lining up for dual-boot Be systems are wafting out of someones crackpipe. There's just no broad market for it, and it increases tech support costs and costs the OEM money.

      2) Be Inc is the ultimate crackmonkey for taking a "media OS" and pushing it as a desktop competitor to Windows despite the fact it had lousy app and hardware support. Maybe they were at wits end not selling their OS to media people and wanted to preserve their honor by doing a Kamikaze dive right into USS Microsoft.

      3) Yes, Microsoft stupidly prohibits dualboots, not out of fear of Be, but out of general monopolistic paranoia. Now they have a fat lawsuit facing them all because they prevented a handful of systems shipping with BeOS. Retards.

    9. Re:Their own fault by Arandir · · Score: 2

      The OEM's are already operating on the edge with each box they manufacture. In the commodity world, a $10 difference in price is enough to put a consumer onto another brand.

      I wonder whose to blame here? Is it Microsoft for bullying these poor innocent companies living on fractional margins? Or is it the companies themselves for making the PC into a commodity to begin with?

      If the OEMs had ever decided to distinguish themselves from each other, they would never have gotten themselves into this situation.

      --
      A Government Is a Body of People, Usually Notably Ungoverned
    10. Re:Their own fault by A+Commentor · · Score: 3, Informative
      Microsoft acted this way back then TOO.. Since a majority of end-users wanted MS, MS priced it so that it was cheaper to license Windows on ALL machines that went out the door, than the 80-90% of the machines for the end-users that wanted MS. So if the OEM wanted to sell both MS and OS/2, they would have to pay for both licenses when they sold the OS/2 boxes. Adding to the cost of the OS/2 machine, increasing it's price, and thus reducing the demand for OS/2 even more.

      This is not the type of business behavior that should allowed when a company holds a monopoly over an industry. And the FED/9 states agreement doesn't address these serious issues that are still remaining.. At least 9 AG still have some common since.

      --

      Looking for any old 8-bit Heathkit/Zenith software/hardware - http://heathkit.garlanger.com

    11. Re:Their own fault by snarfer · · Score: 1

      BeOS certainly wouldn't have "lousy hardware support" if it came installed on the computer. Duh! And if it came on computers, there would have been a LOT more development going on. Even as it was there were a number of apps, but if it came on ANY computer there would have been a MARKET an developers would be able to make money.

      Here's why BeOS was a great business proposition for the OEMs:

      Computer makers all sell the same thing - "Wintel" boxes. The sell a box with a hard drive, a processor, memory, power supply, etc... plus Windows. So how do they compete against all the OTHER computer makers? Maybe a little better price, maybe a better looking case - not much else.

      If the computer maker could advertise that THIS computer ALSO comes with the Media Operating System it would be a great "differentiator". Sony tries now to say it sells "multimedia" computers, for example, to differentiate itself from the others, and it gets a higher price because of this. Imagine the boost a company would get from having BeOS available, and all the music and video apps that it had.

      That's what Hitachi tried to do and that's why Microsoft stopped them.

    12. Re:Their own fault by Bagheera · · Score: 2

      That's a question of economics that would take this way, way, off-topic. But I would dare say that computers wouldn't have become commodity items if consumers hadn't wanted them to become commodity items. In the "good old days" they weren't - they were (relatively) complicated beasts that only a geek could love. It wasn't until the "ease of use" factors brought them down to the masses that they could become a commodity product.

      We - the consumers - are the ones to blame for making computers commodity items. Because we - the consumers - wanted them to be that way. Who's to blame for the mass acceptance of computers?

      Well . . . who made them "so easy to use your grandma can do it?" Apple (MacOS), and Microsoft (Windows)...

      --
      Never attribute to malice what can as easily be the result of incompetence...
    13. Re:Their own fault by adubey · · Score: 4, Interesting

      You really have to think about how things came to be this bad. Way back in the old 3.x days, if MS would have tried to pull something like this in the licensing, the OEM's would have told them to take a flying leap and installed OS2.

      No, this is incorrect. If you remember, the current anti-trust trial was preceeded by the DoJ trying to enforce a 1994 consent decree. This consent decree was created because Microsoft was using illegal tactics to compete against OS/2 in "the old 3.x days".

      Is it the drug dealer's fault for selling crack, or is it the addicts fault for trying it?

      Bad analogy. Everyone is better off with a standard OS ABI (be it a de facto standard, like DOS/Windows, or a de jure standard like POSIX). There wasn't really a standard microcomputer ABI in the early 80's. CP/M came close, but the biggest microcomputer vendors (Apple, Commodore, Atari) didn't support it as standard equipment. DOS (and then Windows) arose because people needed a standard ABI. It isn't the OEM's fault that the owner of the standard is willing to break the law to protect their profits.

      (NB: because there are people who always complain when I call "Windows" a standard: please note the different between an "open standard" and a "standard" and also the difference between a "de jure" standard and a "de facto" standard).

    14. Re:Their own fault by Anonymous Coward · · Score: 0

      You seem to be under the delusion that people buy computers in order to stare at the desktop and play with the widgets. Nope - it's all about the applications. The Media OS wasn't a "differentiator" because it didn't have many compelling applications, and it's advantages in consumer space were decimated wrt Windows by Moore's Law. The only thing that differentiated was it's potential to double tech support costs.

      As for the hardware, what you are saying is the same difference. The OEM is either faced with doing expensive driver development or having a narrower range of parts to chose from.

      Yeah, Hitachi tried to ship free copies of BeOS on one model line in Japan. You really think that would have changed the ultimate fate of Be Inc? Bottom line is that they were doomed when they failed in the pro audio/video markets.

    15. Re:Their own fault by gid · · Score: 1

      As much as I love OSX, I can't see it running on intel anytime soon. Take a look at apple's hardware prices, they're outrageous, do you really think Apple's going to give up the little racket they got going? They're happy with growing small, and charging way too much for their hardware. OSX is what $100? XP Pro is what $299?

      It's simply ignorant to think that apple wouldn't loose money on hardware sales if their junk ran on x86 hardware. I know a few Apple people who would be more than willing to give up their wimpy G4 for a dual AMD 2100+'s that costs half a much and has 4x the power. (warning, I made those stats up).

      Now Apple might be able to compete with MS on the OS market, but that would probably mean no more IE5 for OSX, no more msoffice for OSX, etc. Wow, suddendly OSX sucks without all the pointly clicky MS apps for it. They might be able to make a go of it with bundling open office and mozilla, but is apple really willing to try? Do they even have the resources to support that many people on the OS level? Probabably not, that means Apple would have to seriously ramp things up, hire more people, whoa, now we're getting really risky. Apple's always been inovative, but as long as it still allows them to remain conservative regarding growth.

    16. Re:Their own fault by Anonymous Coward · · Score: 0
      Way back in the old 3.x days, if MS would have tried to pull something like this in the licensing, the OEM's would have told them to take a flying leap and installed OS2.

      Not true. Back then, IBM tried to do this for thier own PCs...and the same type of licence restrictions were imposed by Microsoft. IBM caved in because;

      OS/2 wasn't nearly as popular as Windows.

      Both Microsoft and IBM knew that IBM could not sell PCs without Windows.

      PC sales were and are very price sensitive.

      IBM's PC division, though under some pressure to ship with OS/2, is fairly isolated from the IBM software division. Because of that, the pressure from Microsoft wouldn't have to be too high to get IBM to cave.

    17. Re:Their own fault by Anonymous Coward · · Score: 0

      Actually, in the "good old days", this was an industry that actively marketed their products as "Clones" and 100% Identical to someone else's product. Their advantage was always purely on cost, and the companies like Dell that figured that out early have cleaned up.

      It's not just that they ignored differentiation -- they actively rejected it. Pretty much any advancement has required the mother hens of the industry (Intel, MS, IBM in the old days) to drag them kicking and screaming along.

    18. Re:Their own fault by Shotgun · · Score: 2

      Obviously, your not old enough to remember or learned enough to read the DR-DOS lawsuit.

      --
      Aah, change is good. -- Rafiki
      Yeah, but it ain't easy. -- Simba
    19. Re:Their own fault by bonius_rex · · Score: 2
      Dell has not been bitchslapped anywhere!
      Just today I specced out a poweredge 2550, and You can get it with
      • Windows
      • Redhat
      • Netware
      • Nothing
      RedHat /nothing will cost you $800 over the cost with windows.
    20. Re:Their own fault by bonius_rex · · Score: 2

      Cost == save
      My bad
      It is $800 cheaper if you don't get windows.
      No Microsoft Tax on Dell Servers, Yay!

    21. Re:Their own fault by Anonymous Coward · · Score: 0

      that would be a nice option. ship it with all the os's. the cd box could be larger than the advent speaker boxes.

    22. Re:Their own fault by Anonymous Coward · · Score: 0

      Dude I could not agree with you more... and the drug dealer analogy, is one of the best one's Ive heard yet. :)

    23. Re:Their own fault by Bagheera · · Score: 2

      I was thinking in the OLD days - pre-PC. Back in the Commodore Pet, Apple, Apple ][, Altair, etc., days. There was a time when there was a huge amount of difference between the various platforms and the only people who used them were psychotic hobbiests and small to medium businesses. Back when a Big Business used a Big Computer and we were lucky to get an account on the University shell.

      The clone manufacturers you're referring to are the very same clone manufacturers who were getting raped by M$ licensing agreements. That was the start of the commodity days.

      --
      Never attribute to malice what can as easily be the result of incompetence...
    24. Re:Their own fault by MillionthMonkey · · Score: 2

      Just today I specced out a poweredge 2550 [dell.com]...

      That's a server you just bought. Microsoft would indeed have balls to insist that server equipment manufacturers can only sell NT machines or lose their licenses to distribute NT. They don't have a monopoly in the server market. Some server manufacturers would indeed call their bluff, since it's possible to stay in business by selling Linux servers only, or servers with no preinstalled OS at all. (Not easy, but possible.)

      Where Dell got bitchslapped was in the desktop and laptop arena.

    25. Re:Their own fault by Anonymous Coward · · Score: 0

      You're so clever and funny. Can I be your best friend?

    26. Re:Their own fault by lamont116 · · Score: 1
      Everyone is better off with a standard OS ABI (be it a de facto standard, like DOS/Windows, or a de jure standard like POSIX).

      You mean API, not ABI. You don't need (or want) a standard Application Binary Interface so long as you have a standard Application Programming Interface, because if the API is standard, you can just recompile for various architectures. Microsoft sticks you with an ABI (i.e., x86-only binaries using Windows API). Unix/X11 gives you a (more or less) standard API to work with, so you can compile for x86, PowerPC, SPARC, MIPS, etc. You are not better off with just one ABI, because it severely limits your hardware choice.

    27. Re:Their own fault by Lonath · · Score: 2

      You wrote

      This is not the type of business behavior that should allowed when a company holds a monopoly over an industry.

      I think you meant to write

      This is the type of business behavior that can only happen when a company holds a monopoly over an industry.

      This is no different from Standard Oil forcing rail companies to charge other oil companies extra for shipping their oil if they wanted to ship Standard Oil oil.

    28. Re:Their own fault by Anonymous Coward · · Score: 0

      > As much as I love OSX, I can't see it running on intel anytime soon.

      Not if Apple wants to remain a "valued Microsoft partner" and continue to receive Office and IE.

  39. Are you by GungaDan · · Score: 2
    by any chance the older lady from the Onion's "What do you think" section? The black guy? The pouty-mouthed blonde? Had some serious deja vu with your comment...

    --
    Eloi are stupid, throw morlocks at them!
    1. Re:Are you by Anonymous Coward · · Score: 0

      Actually, I'm the Systems Analyst.

  40. Re:Dell already spoken? by TimButterfield · · Score: 3, Interesting

    According to the article, The new terms would affect contracts written after Dec. 16 for the top 20 PC makers. and Fama concluded that the new uniform pricing mechanism benefits those companies selling the highest volumes, such as Dell Computer. and "Dell may not want to be a witness, but Dell is affected in similar ways to Gateway because of uniform licensing."

    Maybe Dell has already spoken. Reference this recent slashdot article:

    More on Dell Dropping Linux Support

  41. Poor OEMs by Anonymous Coward · · Score: 2, Interesting

    If they had the balls, they would reject this ultimatum policy entirely and compete and be successful without Microsoft or Windows. There are other OSes out there, lots of them. Or if none of them are sufficient, they could team with a software manufacturer to create or port one for exclusive distribution. Or they could just sell their hardware without a bundled OS.

    The real problem is that these OEMs are on one hand complaining about Microsoft's power in the marketplace, but on the other hand (the one with the wallet), they are helping further entrench Windows in the marketplace by complying with Microsoft's abusive licensing restrictions, just so that they won't have to take a short-term risk. Nobody seems willing to take risks anymore, but everyone seems willing to run to the government when Microsoft chooses to shift its bulk around in ways they dislike.

    I can't really feel any sympathy for Gateway, or any other OEM with issues with MS' license. They've had every opportunity to try and work it out privately with MS, or barring that, to drop MS entirely, but they won't because they rely on MS (or believe that they do) to sell machines. So that's a decision they've made on their own. Gateway's market share is close to 10% - Apple has made do with less than that without Microsoft, so why can't Gateway break away from the herd (pun intended) and wield that market share and customer base they've been nurturing, if they're so dissatisfied?

    1. Re:Poor OEMs by cscx · · Score: 1

      If they had the balls, they would reject this ultimatum policy entirely and compete and be successful without Microsoft or Windows. There are other OSes out there, lots of them. Or if none of them are sufficient, they could team with a software manufacturer to create or port one for exclusive distribution. Or they could just sell their hardware without a bundled OS.

      Umm, I'll spare you the "you're a complete moron" line and just go to this:

      Mass produced PCs without Windows DON'T SELL ! I hope that was clear enough.

      If Gateway was to do this, as you suggested, Ted Waitt will be back on the farm the next day milking cows for a living (not that there is anything wrong with milking cows for a living). Get a clue.

    2. Re:Poor OEMs by Binky+The+Oracle · · Score: 1

      The only way I can see Gateway surviving without Windows in the current market would be for them to partner or merge with another OS provider (Redhat, etc.) and become the ultimate source for that particular OS.

      Their market would definitely shrink, and they might not (probably wouldn't) ever recover. There would be, however, the potential for growth should that OS start taking off because all of a sudden there was actually a PC manufacturer offering it and hyping and supporting it instead of it being a geek/cult thing. Most non-geeks I know wouldn't dream of running a Linux box because "oh, that's unix and it must be hard." And for most of them, they're absolutely right.

      And Apple has survived because of a couple of factors:

      • They're really a hardware company with nice margins
      • Apple has its own OS
      • They have a very loyal customer base
      • They were firmly entrenched in education before Microsoft got rolling
      • They kept investing money in R&D so they could stay one step ahead

      There are other reasons but the point is that Gateway can't do any of those things because it doesn't have its own OS to offer. Gateway runs on a low-margin business model and would have to survive a reorg to go in a different direction. Given their current financial situation, I don't know if that's possible.

      --

      Slashdot comments... splitting hairs since 1997.

    3. Re:Poor OEMs by Anonymous Coward · · Score: 0

      "Can't", my ass. Gateway has more than enough capital to buckle down and design their own OS, or acquire one. So what if they lose some money for a few quarters? Cut the fat that can be cut safely, and eat the rest with anticipation of long-term gain. Risk-taking almost ALWAYS involves short-term losses. The fact that these OEMs aren't willing to take those risks is their own fault.

      Apple is doing nothing Gateway couldn't do if it put its metaphorical nose to the grindstone, and since they frequently tout their "named top brand in customer loyalty" status, they've got the user base to leverage to do it. Gateway has options, they're just unwilling to risk what they've got in order to exercise them. And if they're so certain nothing outside of Windows will allow them to succeed, then Microsoft is justified in doing whatever they want with their product, because obviously it's so valuable that Gateway can't exist without it.

    4. Re:Poor OEMs by ncc74656 · · Score: 2
      If they had the balls, they would reject this ultimatum policy entirely and compete and be successful without Microsoft or Windows. There are other OSes out there, lots of them. Or if none of them are sufficient, they could team with a software manufacturer to create or port one for exclusive distribution. Or they could just sell their hardware without a bundled OS.

      Umm, I'll spare you the "you're a complete moron" line and just go to this:

      Mass produced PCs without Windows DON'T SELL ! I hope that was clear enough.

      Try telling that to these guys, who've managed just fine without Microsoft for more than 25 years.

      --
      20 January 2017: the End of an Error.
    5. Re:Poor OEMs by Anonymous Coward · · Score: 0

      Okay, idiotic ad hominem nonsense aside:

      If mass-produced PCs without Windows won't sell, then Microsoft's product is propping up the entire OEM industry as it stands, and they are justified in using whatever draconian licensing they see fit, because to OEMs their product is more valuable than gold. Under this argument, Microsoft is the hand that's feeding these OEMs, and they have no right to bite it (even if there isn't as much food as they'd like to eat).

      That attitude, by the way, is why the OEMs (who are in possession of sufficient capital and market share to aggressively market whatever bundled OS they want) are getting hog-tied and bitch-slapped by Microsoft. It's their choice, and their fault, no matter how hard the MS-is-Satan lobby tries to spin it. They can always take the "out" and look for a better way if they don't like it.

    6. Re:Poor OEMs by Anonymous Coward · · Score: 0

      Exactly - as stated, Apple has half the market share of Gateway, and 1/3 of the market share of Dell, yet it's thriving without Windows.

      Yes, Apple has an established history and user base, but everyone has to start somewhere. And it's not like Apple has been playing it safe, either - they've taken risk after risk just to maintain a foothold. Sometimes it's failed, sometimes it's worked. Way it goes.

      These OEMs are free to remove themselves from deals with Microsoft any time they desire (upon expiry of contract in some cases), and they've got more than enough users and free* cash to make good, innovative ideas work. But they're all scared of the big, wide world, so no solid foods for them - Microsoft's teat is apparently sustenance enough, though they're vocal as ever expressing their disapproval at the quality of the milk provided.

      * - as in available, not as in beer or in speech

    7. Re:Poor OEMs by Chris+Johnson · · Score: 2
      Only because they are brilliant, dedicated, invented the damned personal computer market in the first place, did all the heavy lifting for establishing GUI, fought like rabid weasels to build an Apple community which itself has fought like rabid weasels unceasingly for almost 20 years to get...

      ...what, five percent of the home computer market?

      All that, constant stunning feats of technical imagination like the fanless iMac, the 'Luxo' flatscreen iMac, desktop filmmaking, object-oriented integrated internet access (Cyberdog: that one Microsoft _specifically_ snuffed. After talks with Jobs, the whole project was dumped AFTER it was released and had a following), and they're only running in place, when by all rights they should be Coke to MS's Pepsi.

      This is about monopoly maintenance. It is NOT A MARKET and has not been one for many, many years...

    8. Re:Poor OEMs by Anonymous Coward · · Score: 0

      5% of the home computer market is passable for Apple, and it means more than 5% would for Gateway, I'm certain - what is Apple's user retention rate (to PCs), compared to Gateway's? Gateway customers can defect to Dell and still have their 'stuff' work flawlessly.

      And the fact that you neglect to mention Apple's high cost/proprietary hardware, but chose to throw in useless references to the era in which Apple was the innovator but none of this discussion was relevant as this market was in its absolute nascence, makes me question your credibility.

      There is a market. A tappable market. A potentially lucrative market (no/low user 'recidivism' gives Apple a lot of options Gateway doesn't have). To blame Microsoft for Gateway's voluntary stagnation is ridiculous. Words aren't guns and contracts require two parties to successfully execute.

  42. It's a utility. by Mike+Schiraldi · · Score: 5, Insightful

    Other monopolies (Verizon, the local water company, etc) aren't allowed to cut off good-faith customers. Your power company can't say, "You have to buy our skateboard and milk, they're bundled with our power!" Your local telephone company can't say, "We'll double the price of your phone service unless you stop using any competitors products!"

    Microsoft is a monopoly just like the others, and to most businesses, Windows is as essential as power or telephone service. Microsoft should not be allowed to withhold Windows from them or vary the price based on how much they subjugate themselves.

    (Volume licenses are okay, though)

    1. Re:It's a utility. by uslinux.net · · Score: 2
      Somebody mod this guy up. Way up.

      For all the comments that appear on /. about M$ - good, bad, or indifferent, this is precisely the point M$ has been trying to hide by claiming innovation, or whatever. It's not illegal to be a monopoly, but it *is* illegal to use your power once you are a monopoly to crush others.

    2. Re:It's a utility. by Anonymous Coward · · Score: 1, Informative

      Umm... Utilities are regulated by the government since they provide public service.

      The day we allow governments to completely take over companies just because they have a profound impact on our nation is the day this country loses its freedoms.

      Did you like those rolling black-outs last summer in California?
      How's our congress doing?
      How'd last year's election go? Smoothly?

      Now you want to put this group in charge of managing General Electric, Citigroup, Microsoft, Ford? How about companies that have a profound impact on our nation, but do not reside in this country? Do we have the right to take them over as well?

      What consumers need to realize is that the products Microsoft produces are valuable, but are not essential. There ARE alternatives, and consumers CAN decide not to upgrade to the latest version of everything. Just because the marketing machine of Microsoft says Windows XP is the next great thing, and everybody should jump on the web-services bandwagon, doesn't mean that you have to do it. Consumers need water to survive. They need power to live. But ask a farmer in the middle of Iowa if he could live without Windows (or even ask a parent if they're over 50 or 60) and you're likely to find out that althout society has embraced PCs and Windows ... life would be just fine with an alternative, or no alternative at all.

      Mod the parent up? Sorry ... no.

    3. Re:It's a utility. by Mike+Schiraldi · · Score: 2

      But ask a farmer in the middle of Iowa if he could live without Windows (or even ask a parent if they're over 50 or 60) and you're likely to find out that althout society has embraced PCs and Windows ... life would be just fine with an alternative, or no alternative at all.

      You could have said the same thing about electricity 100 years ago, or plumbing 150 years ago.

    4. Re:It's a utility. by ealar+dlanvuli · · Score: 1

      hm, I live in Iowa. Most farmers around here have a PC with windows and a 56K connection. Just thought I'd point that out =p

      --
      I live in a giant bucket.
  43. Common practice though by Anonymous Coward · · Score: 0

    Market development funds are common practice in the IT industry...

  44. Corporate suicide for the cow? by sphealey · · Score: 2
    I have always liked Gateway (nee Gateway 2000), but I have to wonder if they have decided to commit corporate suicide with this testimony. Any business punishes distributors who cross it, but Gates and Ballmer are known to be Soprano-like in the length of their memory and the degree to which they will go to exact revenge.

    Perhaps Gateway has concluded that they can't compete with Dell, and their plan is to be driven out of business by Microsoft, then sue for $20 billion to distribute to the stockholders?

    sPh

    1. Re:Corporate suicide for the cow? by Anonymous Coward · · Score: 0

      Being someone who works for the cow and it's pet Ted. I'd say that it's a very plausable concept. I work in one of the country stores and we are kept in the dark about everything the only time we're told anything is when upper management says "we're doing great so we're going to eliminate a bunch more jobs" In the past 6 months I've seen what a lot of people inside the company feel to be the thing that set Gateway apart from other OEMs a local outlet in the comunity where not only you could buy the computer but get it serviced when things went wrong we've seen Gateway slowly destroy it by eliminating job after job after store and just recently they have decided to start closing down their local service centers. I think the end is near for the cow.

  45. Nobody mentioned... by aralin · · Score: 2

    ... that the testimony clearly says that although M$ OEM contracts were draconian before the settlement, they used the settlement to make them EVEN WORSE, if thats possible.
    GOD, if nothing else, then this should clearly say to the judge that the settlement is not effective. On the contrary. It gives Microsoft easy way out of too benevolent contracts.

    --
    If programs would be read like poetry, most programmers would be Vogons.
  46. Gateway buyout by runlvl0 · · Score: 2, Funny


    And exactly what punishment for an OEM who testifies to this?

    billg: "Buy him out, Boys!"

    [thugs trash Homer's house]

    billg: "I didn't get to be the richest guy in the world by writing a bunch of checks!"

    --

    Carthago delenda est!
  47. So what exactly is Microsoft guilty of? by dzym · · Score: 2

    Am I one of the few people who don't seem to think there's anything with Microsoft saying, "hey, if you only sell machines with Windows on them, we'll give you a $10 discount on the licenses"? The angle, I think, that one needs to look at this should be: "hey, if you ship only Windows machines, we'll reward you with a discount", not "we're charging you more because you're not shipping solely our products". You see this sort of thing all the time in endorsement contracts. And, after all, if the OEMs actually saw a practical advantage to shipping something like Linux on desktops instead of Microsoft OSes ... like those side offer lines (business, professional lines, whatever) from Dell, etc., they're not obligated to stick with Microsoft. Free choice, right? And it's economically advantageous for smaller OEMs to stick with solely Microsoft offerings, given their options, unless you're so small as to be catering to the niche group of Linux users, in which case you often wouldn't need to bundle an OS anyway!

    1. Re:So what exactly is Microsoft guilty of? by geekoid · · Score: 2

      I'll sum up:
      It has to do with how MS is wielding there monopoly.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    2. Re:So what exactly is Microsoft guilty of? by Anonymous Coward · · Score: 1, Insightful

      IMHO there's a huge ethical difference between "we'll give you a discount if you buy lots of our product" and "we'll give you a discount if you buy our product and none other". Only the latter is a direct assault on the competitive economy we use to allocate essential resources.

    3. Re:So what exactly is Microsoft guilty of? by dzym · · Score: 1

      I suppose what I'm trying to get at here is that it's a reward, not a punishment.

    4. Re:So what exactly is Microsoft guilty of? by EllF · · Score: 4, Informative

      The problem is that there is no free choice. It is not a matter of "sell only Microsoft OSes, and we'll discount you", it's one of "sell only Microsoft OSes, or we disallow you *any* sale of Microsoft OSes." Now, Microsoft is an acknowledged monopoly - no suprise there. An OEM *needs* to sell Microsoft products in order to be competitive. No issue, thusfar.

      What Gateway is testifying to is that it's not fair for Microsoft to impose a blanket restriction upon them (via their OEM license agreement that allows them the ability to sell Microsoft products) which prevents them from selling other alternative operating systems at the same time that they are selling Windows. Such a tactic is an unfair leveraging on the behalf of a monopoly. It's legal for Coca-Cola to do it, for example, because there is a definite alternative - Pepsi. Neither are a monopoly. It isn't legal for Microsoft to do it (allegedly) because of (and due to) their monopoly status. Free choice would mean that an OEM could decide for itself how it wanted to sell its products. When a company MUST have a business model that limits that freedom ("don't sell linux systems or we'll effectively revoke your ability to compete in the current market, which we can do because of our monopolization of said market"), something is wrong.

      --
      We who were living are now dying
      With a little patience
    5. Re:So what exactly is Microsoft guilty of? by Anonymous Coward · · Score: 0

      Remember that a main point of the trial in the first place was that Microsoft is a monopoly. This point was upheld by the court of appeals. The rules are different when you are a monopoly as compared to if you are in a truly competitive market (e.g. shoes).

      What Microsoft is guilty of is using their monopoly position to prevent (or at least severely discourage) a competitor from getting into the market. For an OEM to give up this $10 incentive, they would have to have an OS that would generate a fair bit of revenue for them in the short run. There isn't one there right now (this is one reason that we know that Microsoft is a monopoly).

    6. Re:So what exactly is Microsoft guilty of? by tweek · · Score: 1

      No one is saying monopolies are illegal. In fact they are quite legal when there is no other competition in the market.

      What IS illegal is using your existing monopoly to stiffle any competition. Microsoft is within it's right (and I'll defend that right) to give a special discount to OEMS that promote only Microsoft products. It's called business.

      The illegal part comes when you abuse that monopoly.

      --
      "Fighting the underpants gnomes since 1998!" "Bruce Schneier knows the state of schroedinger's cat"
    7. Re:So what exactly is Microsoft guilty of? by restless_ne'erdowell · · Score: 1

      Yes, but the threat of withholding a reward can be used as a punisment. It's negative reinforcement, just like a parent saying, "no TV unless you clean your room". Microsoft is saying, "no market development money (which could amount to millions of dollars) unless you're a good little OEM and do what we tell you".

    8. Re:So what exactly is Microsoft guilty of? by Anonymous Coward · · Score: 0

      It wouldnt be wrong *IF* MS wasnt a monopoly. But becuase they ARE a Monopoly, (an illegal one at that), they are not allowed to do this.

      The term is "anticompetitive practices"

    9. Re:So what exactly is Microsoft guilty of? by DunbarTheInept · · Score: 2

      Since the "normal" price is purely an arbitrary choice by Microsoft anyway, there is no functional difference between calling the punative expensive price a price hike, versus calling the lesser price a discount. It's all public relations what you want to call it. The fact of the matter is that there are two different rates - and the expensive one is for those who dare offer a choice.

      --

      Don't label something "offtopic" unless you know the topic well enough to tell what's on topic.

    10. Re:So what exactly is Microsoft guilty of? by nfras · · Score: 1

      Now, Microsoft is an acknowledged monopoly - no suprise there.

      Sorry, Microsoft is not a monopoly, if it were there would be no Novell, no Linux etc. Microsoft has market dominance and this is very different from being a monopoly. There are alternatives to Windows and they are readily available, just like Pepsi and Coke. Microsoft is accused of using its market dominance in an anticompetitive way. In the case of Pepsi and Coke neither has clear market dominance and that is why they have never been hauled over the coals. It is common practice for both drinks manufacturers and ice cream companies to lease very expensive fridge/freezers to shops at very cheap prices. However, should the retailer have competitors products on sale, they will start paying the genuine lease price. That is surprisingly similar to what MS are doing except that MS have market dominance and doing so will inhibit competition. No monopoly, just alleged abuse of market dominance.

      --
      You call me a pedant? I prefer the term "correct"
  48. Control of choke points ... by LL · · Score: 2, Insightful

    There is a reason why MS tries to get at least 5 companies to push technology such as their WebPad. It's basically called divide and conquer in that it's easier for each OEM to gain market share by competing against each other than to gang up and change the rules. Think of it as a modified prisoner's dilemma with prisoners not allowed to communication and kept in separate cells so they can't revolt. That is the reason why OEM licenses are considered trade secrets by MS. Since each OEM doesn't know the special volume discounts (which are significant given the low margins of box pushing) of the others, they attempt to bargin a better deal which as OPEC has shown leads to similar concessions by the others.

    It will be interesting to see how Intel attempts to wriggle more negotiating space with the alternatives of Linux, HP Unix coming on-line.

    LL

  49. But now that the shoe IS on the other foot ... by Lumpish+Scholar · · Score: 2
    If you think back to how much MS had to push to get themselves pre-installed onto machines back in the 1980s where they were still fighting tooth and nail against competitive offerings.

    Now that Windows is effectively regarded as as much of necessary part of the computer as the motherboard, the shoe's on the other foot regarding their relationship with OEMs.
    It's legal to establish a monopoly. It's not legal to use monopoly power to maintain a monopoly, or to establish another monopoly.

    What is funny is that Microsoft doesn't consider themselves a monopoly. They think they have to fight, tooth and nail, to barely hang on to that 90% market share. That's why they think what they did is right ... and that's why they'll continue to do it, illegally abusing their monopoly position, unless forced not to.
    --
    Stupid job ads, weird spam, occasional insight at
    1. Re:But now that the shoe IS on the other foot ... by 4of12 · · Score: 2

      they'll continue to do it, illegally abusing their monopoly position, unless forced not to.

      I've certainly thought so.

      From that perspective, even Judge Jackson's breakup proposal would not have been an effective remedy, merely giving one company 90% of the OS market and the other company 90% of the Office productivty suite software market.

      They really need a Standard Oil type breakup into about 8 Baby Bills, each with about 25% market share in one of the two markets, each company ready to claw tooth and nail to increase their market share.

      Then you'd see some real movement in price, quality and innovation in the basic products. It's been too long that the Windows and Office have been mis-used as lock-in and leveraging tools for conquering other markets.

      --
      "Provided by the management for your protection."
    2. Re:But now that the shoe IS on the other foot ... by Kakurenbo+Shogun · · Score: 1
      From that perspective, even Judge Jackson's breakup proposal would not have been an effective remedy, merely giving one company 90% of the OS market and the other company 90% of the Office productivty suite software market.

      The point of Judge Jackson's breakup proposal was to make it impossible for Microsoft to leverage its Office monopoly to maintain its OS monopoly, and vice versa. Having the monopoly was not the problem, it was the way it weilded its monopoly that was the problem.

      If you think back to how much MS had to push to get themselves pre-installed onto machines back in the 1980s where they were still fighting tooth and nail against competitive offerings.

      Now that Windows is effectively regarded as as much of necessary part of the computer as the motherboard, the shoe's on the other foot regarding their relationship with OEMs.

      This isn't exactly a reversal of positions (assuming that was the point of the original comment, which I recognize it may not have been). In the 80's, Microsoft was not fighting against anyone's monopoly power to try to get its software installed--it was fighting to get a number of competitive computer manufacturers to decide that they needed Microsoft's product versus someone else's product.

      --
      Convert RSS to HTML - integrate webfeeds into your website
    3. Re:But now that the shoe IS on the other foot ... by Courageous · · Score: 2

      It's legal to establish a monopoly.

      Not by intent. Only by circumstance. But then again, I suspect that you knew this. I suspect that what you meant to say is "it's legal to become a monopoly". A deliberate attempt to acquire 100% of a market share is for all intents and purposes illegal.

      C//

    4. Re:But now that the shoe IS on the other foot ... by Fjord · · Score: 1

      I'm solidly antitrust, but I've never heard that before. Deliberate attempts to aquire 100% of a market is certainly legal. If you do it by making a better product or being the first in a nascent market, there is no problem. It's not just intent, it intent and what you intended to do.

      --
      -no broken link
    5. Re:But now that the shoe IS on the other foot ... by Courageous · · Score: 2

      Well, we're likely talking about the same things and simply not being verbose enough to make them clear. You can acquire 100% of a market place. By happenstance or opportunity. What you can't do is deliberately attempt to exclude others from that much of the marketspace by specific intent to do so. I.o.w, "we have 85% of the desktop market share and Apple has 6%. Let's exclude Apple from the desktop market place altogether." Any player with that much market share needs to be thinking about market size and market development, not exclusion. Exclusion is the kiss of death.

      A real-world example of a _legal_ acquisition of a monopoly would be the purchasing of the one known major mine/source of a rare earth element.

      C//

  50. try checking the facts first by Pfhreakaz0id · · Score: 2

    I realize this goes against the grain of many elite slashdot Linux HAXXORS, but maybe you could try checking the facts first?
    Dell still offers Linux!

    1. Re:try checking the facts first by bpb213 · · Score: 1

      Are you a medium to large buisiness? Probably not, youre just a home cunsumer like the rest of us. Medium to large businesses can afford to pay dell what it would lose by going against M$, consumers cant.

      --

      This .sig looking for creative and witty saying.
    2. Re:try checking the facts first by TimButterfield · · Score: 2, Informative

      The slashdot article I linked said dropping plans to offer the open-source Linux operating system on some machines it sells. It did not say all machines, only some machines. To quote you, maybe you should try checking the facts first.

      I just did another quick check. I went to Dell Search and searched for 'Linux' in all categories. 7 of the first 10 links are no longer valid. Link 2 was when the 11/19/01 press release came out and allows you to get to the medium to large business sytems you found. Link 7 was for video drivers as recent as 7.0. Link 9 was as recent as 6.1. When I narrowed the search to the Home category, I found only one link. It was for the Lexmark Z53 Color Printer.

    3. Re:try checking the facts first by Pfhreakaz0id · · Score: 2

      But I wasn't replying to you. You had no link. The parent post said it had "gone by the waist-side". I'm assuming they meant wayside.

      And I just went to my link I posted above, went thru the whole process of configuring a ludicrously expensive Dell Workstation, filled shipping info, etc. and got all the way to the point of where I entered my credit card information and stopped. I don't see anything preventing me from doing it.

  51. Gateway's on the ropes by big.ears · · Score: 2

    It seems to me that Gateway may have just signed its death warrant. It is already in financial trouble: their recent Gateway Store idea looks like a bust, they are getting taken to the cleaners by Steven from Dell and the "current economic downturn", and their stock is in the toilet. Now, they just turned on one of the the only companies who could bail them out and keep them afloat, while at the same time making an enemy of the only supplier they have that is irreplaceable. No wonder the other OEMs don't want to testify.

    1. Re:Gateway's on the ropes by Anonymous Coward · · Score: 0

      Welcome to the free market - your independance is bought while your freedom is sold.

  52. Re:Microsoft "IS" out of line.. by metacosm · · Score: 1

    Yes.. that IS how "markets" work.. until there is no "market". Market is defined by competition, by choices. Let me give you an example from "current events".

    Arthur Anderson Accounting was a very successful large company that did accounting, one of the "big 5" accounting firms. It has come to light that Arthur Anderson Accounting destoried documents, and did other "bad" things(read: enron). What was their customers reaction? They LEFT Arthur Anderson, and went to companies that are more respectable. Hence the system worked.

    Now lets turn it around and say that Arthur Anderson Accounting was the ONLY accounting firm that could handle these big companies contracts. Well, then after they destoried docuemnts, and did other "bad" things(read: enron), the companies would have to stay with them, they would have to suck it up and deal with it. They would even possibly defend Arthur Anderson Accounting because they are so terribly dependant.

    Now, imagine how angry a DEPENDANT company would have to be to risk going against the company they are dependant on. Imagine how much of a painful and scary business decision that must of have been. Companies who are dependant on M$ are going against them in open-court. The action to generate this type of reaction from successful companies (I believe) would have to go beyond just rude or "heavy-handed", they have to be down right predatory.

    Just my 2 cents, if you don't like it, use the reply button.

  53. Microsoft maintains a blacklist by Anonymous Coward · · Score: 0

    This is no surprise, Microsoft has had a black list for years. I know, my business was blacklisted for selling OS/2, and I became unable to buy Windows (at OEM pricing) to sell with the PC's I was building. You may not think this is a big deal, but when your markup is only around 10%, it really hurts your competiveness. They deserve whatever they get from this trial.

  54. Don't be silly. by Carnage4Life · · Score: 3, Funny

    I've always known this was true, but now we have a REAL company vouching it..but how does MS do it? Do they send goons in and say "if you don't install Windows we will break your legs?" I mean, how is this different from racketeering? The Mafia does that in major cities with Waste Management. You can only use THEIR company, or they break your legs or set your building on fire. WHich is very similar to how tings work in Eastern-bloc countries.

    I don't know where you are from but in the United States exclusive contracts are a typical occurence in the business environment. The only thing that makes MSFT's an issue is that after a company has achieved a certain amount of market share it may be unfair for them to have exclusive deals with other vendors because it may effectively shut down the competition.

    AFor instance a common example of such exclusive deals is schools, stadia, fast food places and restuarants that only serve soft drinks from a particular vendor (e.g. only Pepsi or Coke products).

    However it is up to the courts to decide whether there was anything inappropriate about these OEM deals and if so to come up with a decision. Likening it to racketeering on the other hand is a gross exagerration and implies that you think that MSFT forces its competitors to accede to its demands through violent means. If you know this for a fact I'm sure the courts would love to hear your testimony.

    1. Re:Don't be silly. by PhilHibbs · · Score: 3, Funny

      It may not be racketeering, but it is abuse of monopoly power. I know that being a monopoly isn't inherently illegal, but using one monopoly to acquire another is - the question that remains is, is using monopoly power to maintain that monopoly illegal? I don't know.

    2. Re:Don't be silly. by Anonymous Coward · · Score: 0

      I agree, but isn't this the economic version of violence. If organized crime can say "pay this protection money or I'll kill you" and it's extortion or racketeering, why can a company once it gets to a certain size say "play by our rules, or you don't get to play" (with the implication of otherwise you'll be marginalized out of existance) and it not be extortion or racketeering. Corporations aren't physical organisms, they are mostly economic organizations. Isn't threat of economic violence just as equivalent as physical violence?

    3. Re:Don't be silly. by catfood · · Score: 3, Funny
      the question that remains is, is using monopoly power to maintain that monopoly illegal? I don't know.

      The answer is yes.

    4. Re:Don't be silly. by xtremex · · Score: 1

      My friend is a VP of a Movie Theater chain, and they have just DROPPED Pepsi as their vendor and went with Coca Cola? Why? Pepsi was making unrealistic demands, and they had to watch their bottom line. How come OEM's can't do this?

      --
      If you're not a Liberal in your 20's, then you have no heart.If you're still a Liberal in your 30's you have no brain.
    5. Re:Don't be silly. by PhilHibbs · · Score: 2, Funny

      I thought it probably was - fuck 'em then.

    6. Re:Don't be silly. by Anonymous Coward · · Score: 0

      the question that remains is, is using monopoly power to maintain that monopoly illegal? I don't know. The answer is yes

      So once you are the best company in your field (in terms of marked share) you have to bend over and let everyone fuck you up the ass?

    7. Re:Don't be silly. by Anonymous Coward · · Score: 0

      You can continue to outperform your competitors. You can't prevent your customers from also doing business with your competitors. There's a difference.

    8. Re:Don't be silly. by WGR · · Score: 1

      Because there is only one brand of MS Wndows compatible OS available. That is the problem. The MS WIndows API is closed, no-onew els can make an Operating system that will allow all of the software written for the Win32 API to work. That is what Judge Jackson established. There is only one supplier of Intel-Win32 API compatible desktop Operating Systems and that is Microsoft. They even try to play dirty (Lindows) when someone even hints of competition. Linux is not a competitor to MS on the Desktop until WINE runs every MC app without a hitch. I expect hell to freeze over sooner. For soft drinks we do have more than one kind of Cola. And every Coke glass in the country will hold Pepsi. What operating system other then Windows will run PowerPoint.?

    9. Re:Don't be silly. by Cro+Magnon · · Score: 1

      There's not yet enough demand for Linux/BSD/any other OS to support the OEM's. Micro$#it has them by the short hairs.

      --
      Slow down, cowboy! It has been 4 hours since you last posted. You must wait another few hours.
    10. Re:Don't be silly. by Thr34d · · Score: 1

      What operating system other then Windows will run PowerPoint.?

      Nitpick: Macintosh

      --
      -- This space intentionally left blank.
    11. Re:Don't be silly. by Analog+Penguin · · Score: 1

      Apple's operating systems will run Powerpoint! Therefore MS is not a monopoly!

      Wait...that's right. The only reason MS hasn't cut development of Office for Mac is because Apple agreed to ship IE as its default browser. (Yes, I know that MS makes a great profit on Office for Mac, and they would lose money if they cut it, but in the long run, anyone who depended on Office for Mac would likely have to switch to Office for Windows in the future anyway...give a little, get a lot.)

    12. Re:Don't be silly. by EisPick · · Score: 2

      is using monopoly power to maintain that monopoly illegal? I don't know.

      Companies in other industries certainly have run into trouble for doing this. For example, Phillip Morris offers incentives to convience stores if they only allow countertop display ads for their brands. So does R.J. Reynolds. And since neither has a monopoly on the cigarette market, they are free to do this. Stores evaluate who is offering them better incentives and either exclusively promote PM or RJR products.

      On the other hand, in "smokeless" tobacco, the U.S. Tobacco company essentially has a monopoly. They control about the same percentage of the chew/snuff market as Microsoft controls of the desktop OS market. UST, too, offers retailers incentives to deny display ads to their rivals. They're doing the exact same thing PM and RJR do with cigarrettes, but they're in court defending themselves against an anti-trust lawsuit because they're a monopoly and the cigarette manufacturers are not.

    13. Re:Don't be silly. by WGR · · Score: 1

      And which company own 20% of Apple and developed its office suite originally for the Macintosh, not Windows?

  55. It happens all around you by WildBeast · · Score: 4, Insightful

    Look around you. Some establishments will only sell Pepsi while others only sell Coke.

    1. Re:It happens all around you by swagr · · Score: 4, Insightful

      Yes, but Coke/Pepsi won't penalize these people for giving you a glass of water.

      --

      -... --- .-. . -.. ..--..
    2. Re:It happens all around you by geekoid · · Score: 2

      True, but Pepsi and Coke are competitors.
      If Coke had used this same tactics as MS, we'd only have Coke.
      Thats the difference.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    3. Re:It happens all around you by cwsulliv · · Score: 1

      Yes, but if Pepsi refused to sell to an establishment it could probably do as well offering Coke, and vice-versa. But it'd be a whole different matter if the only alternative to Pepsi was something like, say, Dr Pepper.

    4. Re:It happens all around you by WildBeast · · Score: 2

      and MS won't penalise OEM's for giving you free anti-virus software.

    5. Re:It happens all around you by TheFrood · · Score: 3, Insightful

      and MS won't penalise OEM's for giving you free anti-virus software.

      Whch isn't a replacement for an operating system. If they try to give you Linux or BeOS, that's a different story.

      TheFrood

      --
      If you say "I'll probably get modded down for this..." then I will mod you down.
    6. Re:It happens all around you by C0vardeAn0nim0 · · Score: 1

      wait 'till they come with their own AV soft...

      --
      What ? Me, worry ?
    7. Re:It happens all around you by SnarfQuest · · Score: 1

      Most of the establishments that don't give you a choice are (or were) owned by the Pepsi or Coke parent company. For example, Pizza Hutt was owned by Pepsico, and only sold Pepsi. I don't believe that there is any law that states that Pepsi must sell Coke.

      --
      Who would win this election: Andrew Weiner vs Andrew Weiner's weiner.
    8. Re:It happens all around you by Bat_Masterson · · Score: 2, Interesting

      But they apparently will penalize OEMs for giving you a free web-browser that isn't made by M$.

    9. Re:It happens all around you by WildBeast · · Score: 2

      some colleges in Canada only sell Pepsi.

      And how about Mc Donalds, movie Theaters, etc.?

    10. Re:It happens all around you by thenightfly42 · · Score: 1

      Actually, this article Going Backwards 'Just Say No to H20' (Unless It's Coke's Own Brew) would contest otherwise. There is (or, at least, was) a concerted effort by the soda companies to block water drinking in restaraunts.

    11. Re:It happens all around you by Mithal · · Score: 1
      I think you didn't get swagr's idea: Yes, but Coke/Pepsi won't penalize these people for giving you a glass of water.

      Your answer and MS won't penalise OEM's for giving you free anti-virus software is like giving a spoon to someone who wants a knife. Your answer is simply a troll hidden behind a seemingly cleaver line.

      MS is penalizing their clients (Dell, ...), by not letting them adress a growing market. Even if you buy Windows, you'll be penalized, as Dell's sales volumes effectively decrease as Linux market increases.

      Every customer is penalized by such an abuse of power.

    12. Re:It happens all around you by Ambush · · Score: 1
      Too bloody right.

      But to make the analogy a little more accurate;

      Is the lunch shop penalised by Coke or Pepsi for not bundling a can with that hamburger you just purchased?

      I don't think so.

      --
      There are 10 kinds of people; those who know ternary, those who don't, and those now hunting for a dictionary.
    13. Re:It happens all around you by Anonymous Coward · · Score: 0

      coke And pepsi do penalize the schools for not endorsing their products, such as stop dealing with the school.

      There was a report from the CBC's (Canadian Broadcasting Corporation) Undercurrent about this issue, and whether it's appropriate for public schools to take endorsements from these fools. Endorsements include ads, only their vending machines, drinking game contests (win a pager,) and other propaganda like "a coke a day is good for you."

      Just because you don't see the abuse of power, doesn't mean they don't exist.

    14. Re:It happens all around you by sharkey · · Score: 2

      and MS won't penalise OEM's for giving you free anti-virus software.

      But they will penalize OEM's for giving you virus-free software.

      --

      --
      "Outlook not so good." That magic 8-ball knows everything! I'll ask about Exchange Server next.
    15. Re:It happens all around you by sharkey · · Score: 2

      Is the lunch shop penalised by Coke or Pepsi for not bundling a can with that hamburger you just purchased?

      More accurate still: Bundling a CASE of Coke/Pepsi, bringing the pop-to-burger price ratio closer to the Windows-to-PC price ratio.

      --

      --
      "Outlook not so good." That magic 8-ball knows everything! I'll ask about Exchange Server next.
    16. Re:It happens all around you by Anonymous Coward · · Score: 0

      Dunn Tire Park in Buffalo (AAA baseball) only sells Pepsi products (and Labatt's and Budweiser are the only beers available). Yuck.

    17. Re:It happens all around you by Anonymous Coward · · Score: 0

      > Look around you. Some establishments will only sell Pepsi while others only sell Coke.

      "Insightful"?!? Moderators on coke (harhar).

      OK, so which of PepsiCo or Coca Cola, Inc can effectively forbid all its major distributors from selling a competing product by threatening higher prices or complete withdrawl of its own product and have that stick due to a monopoly supplier status on cola syrup that works in the distributors' machines, glassware, etc?

    18. Re:It happens all around you by gmanske · · Score: 1
      True.

      So they buy out the more popular brands of the alternatives, such that no matter the choice, the average consumer will be buying a Coke or Pepsi brand (eg. water or juice).

  56. oem's should be forced to ship "naked" systems by Anonymous Coward · · Score: 0

    Let the consumers pick their os, not the pc conglomarets who are in bed with mickeysoft.

  57. Futility of Litigation by yintercept · · Score: 1
    But Fama charged that the uniform licensing provision, which mandates that all PC makers receive the same contract, leaves Microsoft plenty of room to play favorites and reset terms to the detriment of PC makers.

    This article is a good example of the unintended cosequences of most regulation and litigation.

    In this case, MS used the courts decision that they can have only one license for all PC makers as a means for imposing stricter licensing terms on all manufacturers in a down cycle.

    Each time there is a new set of regulations, MS finds a clever way to twist the rulings to their favor. Notice how MS is contributes to a development fund, then using the development fund for leverage. This gets around rebate and discount restrictions. Having a fund gives them more leverage than a rebate.

    The judge's last ruling mandated that all PC makers have the same license...which eliminated the ability of different manufacturers to strike the clauses they rejected. MS used that to force restrictive clauses down the PC makers collective throats.

    This happens in just about all government litigation and regulation. What happens is the strongest players are able to bend the rules to their favor, and force the smaller players into compliance or chapter 11.

    You will see the same pattern in almost all industries. Companies will used the laws past against their excesses as a club against competitors.

  58. You're COMPLETELY missing the issue... by telstar · · Score: 5, Informative
    They're pretty dumb if they thought they were going to get away with that.

    • You're COMPLETELY missing the issue. Microsoft requested that large portions of the submitted testimony be dismissed because they have to do with the states presening NEW evidence. The current hearings are only supposed to address two issues ... the browser war, and the Java war. The 9 states are introducing evidence and presenting witnesses to discuss things like hand-helds, set-top boxes, and any other market that Microsoft has entered since the initial trial was completed. Not only are these issues out of the scope of this trial, they're actually weakening the states' position. Judge Kollar-Kotelly has already warned the states to stay within the domain of what was presented at during the trial and appeal phases, but the states continue to present this evidence in the penalty phase. By not striking this evidence from the record, Kollar-Kotelly leaves it on record for future appelate courts to handle, but she'll likely dismiss a great deal of it when she ultimately renders her decision at the conclusion of this phase.
    1. Re:You're COMPLETELY missing the issue... by agedman · · Score: 2, Interesting

      Actually, I think you're missing or at least misstating the issue. The current hearings are only supposed to address basically ONE thing: what should be done now that MS has been found guilty of monopoly abuse in the Java / Browser wars.

      The states are arguing that the proposed settlement will result in future abuses (and they argue that this will happen, not just that there is some slim, hypothetical possibility).

      MS and friends are arguing that the proposed settlement provides adequate safeguards.

      The states would like to look at how the proposed settlement will or won't prevent MS from doing in current & future markets what it has done several times in the past.

    2. Re:You're COMPLETELY missing the issue... by TheConfusedOne · · Score: 5, Interesting

      Actually, it goes to establishing continued behavior.

      In this particular case it's even MORE important. The OEM License that Gateway is commenting about is the "new and improved" license that has been created by MS to comply with the DoJ's proposed settlement. This goes directly towards proving how inneffective the proposed settlement is.

      If the actual license is how it has been portrayed and this is the new license to meet the DoJ's criteria, then I think it goes quite far in proving that the settlement doesn't do anything. In fact, it seems to make the situation worse. I find it quite amusing that this license seems to reinstitute the old per-CPU license by calling it a royalty.

      --
      --- I wish I could hear the soundtrack to my life. That way I'd know when to duck.
    3. Re:You're COMPLETELY missing the issue... by markt4 · · Score: 1

      I'm not sure if it is the same for anti-trust law, but in other criminal proceedings courts usually allow much more latitude in the scope of testimony during the penalty phase of the trial than they do during the verdict phase. It goes toward showing a pattern of behavior, and the judge can and frequently does use it to determine the severity or lightness of the penalty imposed.

    4. Re:You're COMPLETELY missing the issue... by mbbac · · Score: 1

      "The 9 states are introducing evidence and presenting witnesses to discuss things like hand-helds, set-top boxes, and any other market that Microsoft has entered since the initial trial was completed." What does Gateway have to do with any of that? They were talking about Windows licenses for PCs.

      --

      mbbac

    5. Re:You're COMPLETELY missing the issue... by thesolo · · Score: 2

      The 9 states are introducing evidence and presenting witnesses to discuss things like hand-helds, set-top boxes, and any other market that Microsoft has entered since the initial trial was completed. Not only are these issues out of the scope of this trial, they're actually weakening the states' position.

      The whole point of the states bringing these things up is to show that MSFT is still acting illegally as a monopoly, despite the previous court ruling.

      If they only focused on Sun & Netscape (now AOL/TW), they would not properly show MS as the monopolistic giant that they are, nor would they show MS's potential for harm. These things are relevant to the case, in that they show how MS operates currently (which, not surprisingly, is exactly how they operated when this trial began).

    6. Re:You're COMPLETELY missing the issue... by ch-chuck · · Score: 2

      Microsoft requested that large portions of the submitted testimony be dismissed because they have to do with the states presening NEW evidence.

      That's right - these NEW crimes will be delt with in due course in the antitrust trials of 2112, when Msft has a savings account of 2.5 Trillion, and all digital devices are their property.

      But seriously, I think this behavior is pertinant to the case as it was going on at the time of the browser/Java wars. This is NOT a new issue. How did they deploy their late to market browser? By OS integration and the pre-existing and ongoing vendor intimidation.

      --
      try { do() || do_not(); } catch (JediException err) { yoda(err); }
    7. Re:You're COMPLETELY missing the issue... by markmoss · · Score: 2

      And you are missing the issue: Is the conduct remedy adequate to stop MSFT from misusing it's monopoly?

      "Gateway also faulted another provision of the new licensing agreement, which requires PC makers to pay a Windows royalty on every PC shipped, even if it didn't include Windows. To top it off, to qualify for market development funds [$10/PC], PC makers have to put a Microsoft OS on every PC. As a result, trying to sell non-Windows PCs, or even PCs without software, is a financial loser for computer makers."

      That is, if you sell one Linux box, you not only have to pay Microsoft for software that _wasn't_ on it, you also get the price for all the MS licenses you did use raised by $10. MSFT is already committing more crimes. Seems to indicate that a little stiffer supervision is needed, eh?

    8. Re:You're COMPLETELY missing the issue... by Anonymous Coward · · Score: 0

      Another view, is these new points underline the need for the remedy to be forward looking - MS's clout, and market share revenue is still going forwardand at the same time, competition declining. New entrants must step up to the plate, for the ruling to be judged effective. The states are right , saying look at this, that, because their prediction that it wont make one iota of difference, is on the money.

      A tax on MS to fund an equal and opposite levy might be needed.
      The open source projects may have a hope in 5-10- years of making that dent.

  59. Chat transcript from Gateway - Jan 02, 2002 by Random+Feature · · Score: 3, Informative

    Thank you for using our eSales Advisor live chat service. For your convenience and reference, we have attached a transcript of your chat session below
    Topic: Customizing A New Notebook

    Me: Can I have Windows XP removed before shipping?
    Carson: hi. welcome to gateway country. my name is carson, your esales advisor. may i please have your phone number in case this chat disconnects?
    Me: xxx-xxx-xxxx
    Carson: thanks. let me check
    Carson: which laptop do you want to purchase? and which operating system do you want?
    Me: I was considering the Solo 1400se. I'd prefer either Mandrake 8.1 or RedHat 7.2
    Carson: i see. we cannot send a laptop w/o an operating system.
    Me: Why is that?
    Carson: licensing agreement.
    Me: With who?
    Carson: microsoft
    Me: What are my options then - I take it Linux is not an option?
    Carson: correct. we can load xp, win2000, or 98.
    Carson: ok. you're welcome. thank you. bye.
    Carson: | eSales Advisor | 1-800-846-2036 x55238
    carson.kotay@gateway.com | 11410671:6051783

    I knew the answer, but I wanted to see it in writing from a rep.

    --
    I don't have a solution, but I certainly admire the problem.
  60. Support Gateway by Anonymous Coward · · Score: 0

    If Gateway takes a hit from Microsoft, and your looking for a new OEM computer, support Gateway. It took a lot of guts for them to testify.
    Hopefully, they won't be the only customer to do so.

  61. Re:Whoa by fredrik70 · · Score: 1

    it's expensive stuff...
    good high-grade charliepuff

    --
    if (!signature) { throw std::runtime_error("No sig!"); }
  62. Simpsons by Jagasian · · Score: 3, Funny

    They actually had a Simpsons episode about how Microsoft does business.

    1. Re:Simpsons by csbruce · · Score: 1

      They actually had a Simpsons episode about how Microsoft does business.

      "Buy 'im out, boys!"

    2. Re:Simpsons by exodus2 · · Score: 1

      Home: do you want to buy my company?
      Bill gates:Ok boys lets buy him out (2 goons destroy homers office, which is just a table with that bobing duck)

      that was a funny epsode.

      --
      .sigs suck, thus nothing here.
    3. Re:Simpsons by Max+the+Merciless · · Score: 1

      "It's drinking the water!!!!" hehehehehe

      --
      * * Always question "the National Interest" - 9 times out of 10 it is a cover for evil
  63. Gateway *CAN* Suffer by Anonymous Coward · · Score: 0

    I don't know if I'm off base for this comment, but it's pretty much common knowlege that Gateway is in financial trouble right now. Could it be that somebody up top decided "If we're going down in flames, we might as well do it for a good cause!" Think about it... if they oppose Microsoft in court and stand up for themselves, then they can just cry that they angered the giant and paid the price for it.

    Just my $.02

    1. Re:Gateway *CAN* Suffer by csbruce · · Score: 1

      Think about it... if they oppose Microsoft in court and stand up for themselves, then they can just cry that they angered the giant and paid the price for it.

      Perhaps they'll get a billion-dollar settlement five years down the road, after the predictable happens (business as usual at Microsoft).

    2. Re:Gateway *CAN* Suffer by connorbd · · Score: 2

      Well, hey... do cows tend to fight back if cornered?

      I submit that if Gateway wants to capitalize on goodwill generated from this operation, though, they might want to start by ending their abuse of the ATX spec and go back to making hardware that can actually be upgraded. I've noticed that a lot of their most recent systems are very cheaply made systems using cases that seem to be designed specifically for Intel motherboards (i.e. no cutout around the rear ports and no way to add a new mobo without a pair of metal snips). That's just one thing they could do...

      /Brian

    3. Re:Gateway *CAN* Suffer by Anonymous Coward · · Score: 0

      > Well, hey... do cows tend to fight back if cornered?

      Not if shot with curare darts (various forms of Windows higher costs or unavailabilities).

  64. That's what I thought, too, but... by Crag · · Score: 1

    If Microsoft tries to pull anything on Gateway now it will be OBVIOUS that it's a retaliation for their testimony. Even if that retaliation itself has no legal ramifications, the political reprocussions would probably be disasterous for Microsoft.

    A large chunk of people out there still don't even know that Microsoft practices sketchy business. Something like that would probably put them in a light more like that of bigger, older companies (the bells, the standard oils, etc).

    Hats off to Gateway for having the guts to stand up and be counted.

    1. Re:That's what I thought, too, but... by Tony-A · · Score: 2

      There are far too many ways for Microsoft to retaliate without being obvious, without the victim even having more than a vague suspicion.

  65. wallmart is big enough by pmineiro · · Score: 1
    1. Re:wallmart is big enough by Chris+Johnson · · Score: 2

      Wait.

    2. Re:wallmart is big enough by Anonymous Coward · · Score: 0

      Walmart isn't a PC-only OEM or they'd not be doing this. Worst comes to worst, Walmart threatens to drop PCs altogether. MS either says OK to original terms or away go Walmart PCs. I doubt there's enough demand for naked PCs to make it worth their while to incur stocking etc costs on 'em.

  66. You're being simplistic by donutello · · Score: 4, Informative

    There's a HUGE difference between Microsoft and Verizon.

    One is a monopoly that was granted by government fiat. A natural consequence of that is that the government has the authority to regulate it and impose restrictions. Verizon didn't build its monopoly by building a unique business model or providing unique service. Its monopoly was granted to it by the government.

    Microsofts "monopoly", on the other hand was built without government assistance.

    You have no way to obtain phone, power or water without the utility (government regulations see to that). You can always obtain an OS without Microsoft.

    Also, Microsoft was not cutting off the supply to Gateway. It was not "raising" the prices either. Gateway could always buy Windows at the full retail price at the time of retail availability. There is a cap on the price which is the retail price - a price at which several million people buy the product.

    Are you trying to say that because Microsoft has this "monopoly" that it owes the government nothing for, it should be required to offer a discount to Gateway just because it asks for it?

    --
    Mmmm.. Donuts
    1. Re:You're being simplistic by Mike+Schiraldi · · Score: 5, Insightful

      You have no way to obtain phone, power or water without the utility (government regulations see to that). You can always obtain an OS without Microsoft.

      For most businesses, "an OS" is worthless unless it's an OS that can run their stuff. Microsoft doesn't have a monopoly on the operating system market, they have a monopoly on the "operating systems that can run Win32 applications" market.

      Your argument is like saying, "You can always power your business with steam, or hydraulics."

      Also, there is no way Gateway could be competitive if they had to pay full retail price for Windows. The profit margins are razor-thin in the OEM business.

      So Gateway has two choices: do whatever Microsoft demands or go out of business.

      That last part is the crux of my argument; if you reply, you should explain why it's okay that Microsoft can demand whatever they want from OEMs, and the OEMs have no choice but to obey.

    2. Re:You're being simplistic by Anonymous Coward · · Score: 0

      Hey mod this smart fellow up. Besides, MS was made a monopoly by the app writers and MS kills them in return. MS is THE FRANKENSTAIN guy. IBM under pressure form GOVERNMENT made it though.

    3. Re:You're being simplistic by johnnyb · · Score: 2, Interesting

      donutello said:

      One is a monopoly that was granted by government fiat. A natural consequence of that is that the government has the authority to regulate it and impose restrictions. Verizon didn't build its monopoly by building a unique business model or providing unique service. Its monopoly was granted to it by the government.

      Microsofts "monopoly", on the other hand was built without government assistance.

      ***

      WRONG. By all historic accounts, copyright is a government-granted monopoly. By relying on copyright, they were relying on the government's enforcement of their monopoly, and therefore are subject to it's demands.

    4. Re:You're being simplistic by donutello · · Score: 1

      You're confusing issues here.

      Copyright grants Microsoft a monopoly on Windows(tm). Copyright does not grant Microsoft a monopoly on OSes. Anyone is free to write a new OS.

      Again, there is a difference between a monopoly being granted (e.g. utilities) and a monopoly on someones creation. The latter is not considered a monopoly, btw. Copyright law has very specific advantages. It was designed to offer an incentive to creaters to release their content being granted a limited term monopoly on its distribution with the understanding that it will become free after a period of time (of course our stupid politicians have completely subverted that by extending them for 72 years)

      --
      Mmmm.. Donuts
    5. Re:You're being simplistic by lamont116 · · Score: 1
      Verizon didn't build its monopoly by building a unique business model or providing unique service. Its monopoly was granted to it by the government.

      Verizon is one of the "baby Bells" that resulted from the AT&T breakup, and AT&T built up its monopoly by virtue of the fact that its founder invented the telephone. I'd call you an idiot, but that is self-evident.

    6. Re:You're being simplistic by johnnyb · · Score: 2

      Copyright law has very specific advantages. It was designed to offer an incentive to creaters to release their content being granted a limited term monopoly on its distribution with the understanding that it will become free after a period of time (of course our stupid politicians have completely subverted that by extending them for 72 years)

      ***

      Exactly. However, Microsoft DOES have a monopoly on the Windows operating system. That monopoly is granted by the government. If Microsoft uses that monopoly for things that don't benefit the public, they have the right to restrict them. The fact that others have the right to develop their own OSs is immaterial.

  67. Another way of looking at it: by 3vi1 · · Score: 1

    Let me play devil's advocate for a second here. Please don't flame me for thinking out loud, just point out the errors in my logic.

    These companies are bitching because they basically don't get a $10 discount on Windows if they offer other OS solutions. So, basically, MS is giving these companies a discount if they 'partner' with them to promote Windows. Don't *all* companies do something like this??? Does this differ from the 'bulk discount' manufacturer deals we see everywhere by *that* much? Instead of discounting in quantities bought, they're discounting in percentages installed - that's the only difference.

    So, companies that offer Linux et al are outraged because they have to pay $10 more for Windows than if they were exclusively MS. What does that tell you? Could it be telling us that these companies really should stick to just Windows if that's all they anticipate selling? After all, they wouldn't have to pay the $10 more for all the non-Windows systems they sell! In fact, they would save money on all those systems by not having to pay MS a dime.

    Which brings to mind this:

    Do you *really* want a manufacturer's installation of Linux on your box??? Is there ONE SINGLE Linux user that wouldn't much prefer to FDISK and install it clean? Do you *want* your Linux to come with an AOL icon integrated into the desktop???

    Come on guys! We've seen how HP, Compaq, and company can totally trash up an OS as simple as *Windows* with all their shareware and free previews (not to mention that sometimes they just plain screw up and have the wrong drivers in the build). Just *imagine* how f'd up the Linux builds would be! I get tired of seeing manufacturer logos on BIOS screens; I sure as hell don't want them all over the kernel too.

    If enough companies sold systems with Linux, FreeBSD, or whatever already loaded on them, Microsoft would be *forced* to drop the $10 extra crap - in order to sell more Windows! Buy your next computer from a manufacturer with a backbone, if you *must* have a badly mangled pre-loaded OS on it.

    And that ends my rant boys and girls. Tip your waitress. I'll be here all week.

    -J

    1. Re:Another way of looking at it: by lamont116 · · Score: 1
      These companies are bitching because they basically don't get a $10 discount on Windows if they offer other OS solutions. So, basically, MS is giving these companies a discount if they 'partner' with them to promote Windows. Don't *all* companies do something like this??? Does this differ from the 'bulk discount' manufacturer deals we see everywhere by *that* much? Instead of discounting in quantities bought, they're discounting in percentages installed - that's the only difference.

      It's a fundamental difference. Bulk discounts are not necessarily exclusionary, percentage discounts are. The bulk discount says "sell a lot of units, creating an economy of scale, and we'll cut you a break," while a percentage discount says "create a market barrier to our competition or we'll wreck your margins compared to your competitors who play ball with us."

      Do you *really* want a manufacturer's installation of Linux on your box??? Is there ONE SINGLE Linux user that wouldn't much prefer to FDISK and install it clean? Do you *want* your Linux to come with an AOL icon integrated into the desktop???

      I want to see that, even though I might not buy it. If KDE/Linux systems were for sale at CompUSA, more people would see Linux, try Linux, and buy Linux. As a Linux user, I benefit because developers would have increased interest in Linux, due to a larger user base.

    2. Re:Another way of looking at it: by Anonymous Coward · · Score: 0

      False assumption: Microsoft would be forced to sell the OS for $10 if it could not get exclusive conctracts. They could sell it for $1 if they wanted to, with or without the exclusivity clause. Percentage discounts are not volume discounts. The former is monopoilistic.

      Penalizing a vendor for offering an alternative to your products is a clear violation of anti-trust law for any monopoly.

      Scythe

    3. Re:Another way of looking at it: by Anonymous Coward · · Score: 0

      How many of us are powerusers? How many of us build our own boxes?

      Now how many people are fine with default installations of MS Windows when they buy their CompaGateDelshiba?

      How many would be content with an easy-to-use, preinstalled Linux distro?

      Frankly, I sure as hell wouldn't, and I know you wouldn't be either. Many, many people would, though.

    4. Re:Another way of looking at it: by Anonymous Coward · · Score: 0

      Let's look at the scenario more clearly:

      Joe buys his family a new PC. It comes for $60 less because instead of Windows it has a free copy of Red Hat installed on it.

      None of the software on the old computer can be installed on the new computer, even the games and office suite (Corel) that Mom carefully set aside the CD-ROM disks for.

      Joe is a deacon at his church and also a member of the Lions Club. The next week at Church and the Tuesday night Lions meeting, he tells everybody what a 'stinking bad deal' that Linus was. Why, he had to buy a separate boxed copy of Windows, for $180, because he made the mistake of buying 'that Linus machine.'

      Repeat a few hundred times. End result: massive bad image for Linux on Main Street.

    5. Re:Another way of looking at it: by Anonymous Coward · · Score: 0

      It is not that I want a pc with linux loaded on it, it is that I do not want to pay for a copy of windows I will never use. So even it all linux users did is run fdisk when they got the machine it would be better than it is now.

    6. Re:Another way of looking at it: by Monkelectric · · Score: 2

      You kinda missed the point... Do I want pre-installed linux? no ... but would I like to buy on oem box and install my own os? maybe ... can I? no! *all* oem boxes have windows on them, so I end up paying for windows wether I want it or not ...

      Here's the other thing, a linux box would prolly be 50$ cheaper then a windows box because of the MS licensc, ms dosen't want people buying a *cheaper* linux box and then putting a pirate windows on it!

      --

      Religion is a gateway psychosis. -- Dave Foley

    7. Re:Another way of looking at it: by Anonymous Coward · · Score: 0

      Not having Microsoft Windows preinstaled
      is about not giving your money(tm) to Microsoft.
      If i can pay +200$ less for a assembled PC, it is
      verry nice.. And even if it only increase the
      price of 2$ why sould i give this 2$ to msft?

    8. Re:Another way of looking at it: by lamont116 · · Score: 1
      You are assuming that Joe is so stupid that he has no idea that he is buying something that isn't running an MS operating system. How many people buy a Mac and then badmouth Apple because they only realize after the fact that it won't run Windows software? Not many, I'd expect. In any event, I bet that the churchgoers and Lions Club members would tell Joe that he was an idiot for not doing even minimal research before sinking money into a computer, rather than taking his ranting seriously.

      I think that the bigger problem is that the CompUSA drones (et al) would push Joe away from the Linux machine (just as they steer people away from the Macs) and to Windows, spewing fountains of FUD as they go. Nonetheless, it would be nice if more people got a chance to see Linux in action and play with it themselves.

    9. Re:Another way of looking at it: by Anonymous Coward · · Score: 0

      > You are assuming that Joe is so stupid that he has no idea that he is buying something that isn't running an MS operating system.

      You are assuming that the salesdrones at Frys, CompUSA, etc won't say whatever's necessary to move those boxes out - "Sure, you can run Windows programs on it; it comes with this special software called 'wine' and it runs everything! Don't worry!" You can guess how this scenario plays out.

    10. Re:Another way of looking at it: by lamont116 · · Score: 1
      You are assuming that the salesdrones at Frys, CompUSA, etc won't say whatever's necessary to move those boxes out - "Sure, you can run Windows programs on it; it comes with this special software called 'wine' and it runs everything! Don't worry!" You can guess how this scenario plays out.

      Why would the salespeople have any incentive to push the Linux boxes over the Windows boxes they also sell? A sale is a sale. They would probably have an incentive to push Windows, since the customer could then be sold a bunch of shrinkwrapped software with the computer, increasing the commissions (if they get commissions).

  68. www.walmart.com by Anonymous Coward · · Score: 0

    You can take a look at this one too.
    Wal-Mart.com

  69. Has anybody else... by SouperDouper · · Score: 1

    compared this to a franchise situation? Of course Microsoft is going to throw their weight around...

    Consider the OEM to be a McDonald's franchise owner. McDonald's, for the franchise fee, is giving them advertising, a well known name, customer base, etc. and rightly expects them to use the standard McDonald's menu. Different locations have their own special items (comparable to other preloaded software) but if they deviate too much, their franchise rights (OEM license) could be could be revoked. Why shouldn't Microsoft be able to do the same thing?

    1. Re:Has anybody else... by Anonymous Coward · · Score: 0

      Bad analogy.

      OEMs are not a franchise. Dell is selling hardware, the software is just a bonus of sorts.

      When you open a McDonald's, you are a McDonald's. If I open Bob's Discount Computers, I am not Microsoft.

    2. Re:Has anybody else... by Rascalson · · Score: 1

      Because they have a monopoly on the PC desktop, oh and they suck too!!

      --
      prisoner# msce18xxxxx. Currently planning my escape.
    3. Re:Has anybody else... by Anonymous Coward · · Score: 0

      But *I* have a choice. I can go to In-n-Out, BK, Taco Bell or even an independent.

      ac

  70. I've always wondered... by Junior+J.+Junior+III · · Score: 3, Interesting

    ...Why couldn't an OEM hide behind a subsidiary or spinoff marque that they could use to sell hardware without the M$ tax.

    Suppose that, OK, Gateway computers HAVE to have Windows, because Gateway must follow the Way of Gates. But what's to stop Gateway from spinning off a tiny company called "Freeway, a subsidiary of Gateway" or whatever, and have *that* company sell all the non-M$ OSes they want? So M$ strips Freeway of any license to bundle M$ software. Freeway thumbs its nose and says, "So what?" Meanwhile, Gateway mocks sympathy for M$ and says, "You know, I really do wish we could better control those rogues down at Freeway. But our organization just doesn't have that level of control over our subsidiaries."

    Why couldn't this work?

    --
    You see? You see? Your stupid minds! Stupid! Stupid!
    1. Re:I've always wondered... by Anonymous Coward · · Score: 0

      maybe because M$ is freaking bully and they don't give a shit.

    2. Re:I've always wondered... by zoftie · · Score: 1

      You are awfully naive. When you will read one of those agreements, your head will be the size of two towers.
      p.

    3. Re:I've always wondered... by kcbrown · · Score: 2
      Suppose that, OK, Gateway computers HAVE to have Windows, because Gateway must follow the Way of Gates. But what's to stop Gateway from spinning off a tiny company called "Freeway, a subsidiary of Gateway" or whatever, and have *that* company sell all the non-M$ OSes they want? So M$ strips Freeway of any license to bundle M$ software. Freeway thumbs its nose and says, "So what?" Meanwhile, Gateway mocks sympathy for M$ and says, "You know, I really do wish we could better control those rogues down at Freeway. But our organization just doesn't have that level of control over our subsidiaries."

      Why couldn't this work?

      Because MS would go back to Gateway and say (in its best Marlon Brandoesque voice) "We're very concerned about the management problems you're having. It is very unfortunate that we've had to raise our price. You're one of our favorite partners and we're deeply saddened that we can't give you a better price, But until you take care of your management problems there's nothing we can do to help you."

      --
      Use 'slashdot stuff' in the subject line in any email you send me if you want to get past the spam filter.
    4. Re:I've always wondered... by Chris+Johnson · · Score: 2
      Damn straight. This is not like debugging a computer program. It's like street punk posturing. And geeks tend not to understand street punk posturing, or the concept that someone else could be not simply providing them with a puzzle, but twisting their arm or putting a gun to their head because they want the geek DEAD or OBEYING.

      On the other hand, judges DO understand how threats work...

    5. Re:I've always wondered... by Anonymous Coward · · Score: 0

      > Why couldn't this work?

      Because Microsoft executives may be many things, but being business-stupid is not one of them. Gateway would get its licenses pulled until Freeway got put back in line.

    6. Re:I've always wondered... by mpe · · Score: 2

      Suppose that, OK, Gateway computers HAVE to have Windows, because Gateway must follow the Way of Gates. But what's to stop Gateway from spinning off a tiny company called "Freeway, a subsidiary of Gateway" or whatever, and have *that* company sell all the non-M$ OSes they want? So M$ strips Freeway of any license to bundle M$ software.

      Most likely because either it says that Gateway can't do this in the (secret) agreement they made with Microsoft...

  71. Preinstalled linux? Yes please! by iamsure · · Score: 2

    >Do you *really* want a manufacturer's installation of Linux on your box??? Is there ONE SINGLE Linux user that wouldn't much prefer to FDISK and install it clean?
    Yes. There is.

    Prime example:

    My Father recently had to buy a new PC. Being several states away from him, I couldn't go with him. He did take my recommendations with him, which included "Absolutely, definitely, no XP."

    You see, his Fiancee does work on the computer, and is a financial planner. Due to the huge list of privacy concerns, passport tie-ins, and licensing restrictions, I didnt feel it was appropriate to keep customer data on a PC running XP.

    Upon his triumphant return with a PC with XP installed, he asked for help, which I refused.

    I am not, nor will I ever become familiar with XP, and it is really a bad idea to store customer data on it.

    What does this have to do with Linux pre-installed?

    Well, glad you asked.

    If he had had the option of using the linux partition instead, he could have. He has a video camera that sync's with the machine, a web-based email system, and a few other non-windows-requiring activities.

    For those, I could happily ssh in and help him with whatever he needed fixed.

    I could even access the windows partition, to read certain files!

    Alas, since MS strong-arms every manufacturer to not install older software, nor alternative software, there is no option for my Father.

    None.

    1 Microsoft Way. Not just an address..

    1. Re:Preinstalled linux? Yes please! by gruntvald · · Score: 2, Funny

      You can work directly with the contents of his hard disk, even if he's using XP. All you have to do is write some javascript at the end of a special URL, and tell him to visit it.

    2. Re:Preinstalled linux? Yes please! by Anonymous Coward · · Score: 0
      I am not, nor will I ever become familiar with XP...
      So you're bitching about something you're not familiar with? Neat! I think I'll trust you!
  72. Dell didn't speak, the market did. by dave-fu · · Score: 2

    Quoting the CNet article referenced in that link...
    The move was not unexpected. Dell executives have suggested that the operating system has more potential for workstations and servers. The desktop decision was largely a financial one, influenced by the slow PC market, said Dell spokesman David Graves.
    [...]
    Analysts seemed unsurprised by the move. "Linux has held a very small portion of the market" for desktop PCs, said Dan Kusnetzky, vice president of systems software research at IDC.

    Until someone from Dell testifies that "we dropped Linux support because Microsoft pressured us to do so and not because it simply wasn't selling" don't go putting words in other peoples' mouths.

    --
    Easy does it!
    This comment has been submitted already, 276865 hours , 59 minutes ago. No need to try again.
    1. Re:Dell didn't speak, the market did. by jc42 · · Score: 3, Informative

      > "Linux has held a very small portion of the market" for desktop PCs, said Dan Kusnetzky, vice president of systems software research at IDC.

      Well, of course linux has a small portion of "the market". This is because people who want linux are forced to buy a Windows PC and install linux on it. So almost all of the linux "desktop" machines are listed in sales records as Windows machines.

      This is just one of many dishonest ways that people determine what "the market" wants.

      If something isn't for sale, "the market" always shows that people aren't buying it.

      Duh.

      --
      Those who do study history are doomed to stand helplessly by while everyone else repeats it.
    2. Re:Dell didn't speak, the market did. by Anonymous Coward · · Score: 0

      Gimme a break dude...what stopped you from installing linux on your pc?...If anyone wants to install linux,nobody can stop'em.As for Gateway I just put'em in the same boat with other never made any profit companies like Be Software and such,trying to get something from this M$ lawsuit.
      There are 2 kinds of companies in this lawsuit imho:
      Companies who do have a point ( like Netscape and MAYBE Sun ) and the rest trying to make a quick profit ( Be Software ) or just to maintain their own monopoly ( like Nokia ).Don't start relpying that blah blah this is not a private lawsuit since the M$ is fighting some states.We all know who's paying the states' bills.

  73. Slow down Cowboy Neal with a .357! by Anonymous Coward · · Score: 0

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  74. OS Graveyard by christurkel · · Score: 1

    In it's quest for "innovation" M$ has killed these OSes: Amiga Atari/Lynx OS/2 BeOS DOS Such a shame...

    --

    CDE open sourced! https://sourceforge.net/projects/cdesktopenv/
    1. Re:OS Graveyard by Anonymous Coward · · Score: 0

      all are victims to the Gates epidemic.

      posted from a SUN, running Solaris.

  75. Watch the cowpies dudes! by gelfling · · Score: 1, Flamebait

    Gateway - the company long committed to the philosophy that quality control is for other people and as long as it turns on the first time that's good enough. And now they bitch and moan that getting treated like a beef patty by their own supplier is unfair.

    Lemme tell you what - you two deserve each other. MS/Holstein - a dysfunctional marriage made in hell.

  76. In other news... by CaptainSuperBoy · · Score: 1, Troll

    It seems that if an OEM does not ship Windows on every PC they ship that they are severely penalized

    In another remarkable turn of events, bears have been seen defecating in the woods!

  77. Your analogy is poorly contsructed by GePS · · Score: 2, Insightful

    Yes, it would be in Pepsi's best interest to see that Britney only endorses Pepsi, but that is moot, because Pepsi and Coke are both large companies that are in relatively equal competition with each other.

    Windows is a monopoly, and as such, can cause severe damage to CPU distributors by charging extra if they want for whatever reason. The key idea here is that the CPU distributors need windows on their machines to survive as a company. They have no other alternative whereas britney can always go to a different soft drink company, and not go out of business (and yes I mean business, there's no art to the crap she puts out)

  78. One more thing by Anonymous Coward · · Score: 0

    This clearly violates the concent decree Microsoft agreed to in 1994 in order to get the DoJ to end its monopoly investiagtion back then.

  79. Now you are being paranoid!! by Anonymous Coward · · Score: 0

    Now how many people out there actually wait for that linux version vs. loading it onto your windows partition.

    Is windows security realy that bad?
    glad i dont have it.

  80. You are the one being silly by RelliK · · Score: 2
    The only thing that makes MSFT's an issue is that after a company has achieved a certain amount of market share it may be unfair for them to have exclusive deals with other vendors because it may effectively shut down the competition.

    Let's say it more specifically: Microsoft has a monopoly in desktop operating systems, therefore it is illegal for Microsoft to make exclusive deals with OEMs. There, that's better.

    However it is up to the courts to decide whether there was anything inappropriate about these OEM deals and if so to come up with a decision.

    The courts *have* decided: it's illegal. Read the ruling. Or does your employer screen your internet access? ;-)

    Likening it to racketeering on the other hand is a gross exagerration and implies that you think that MSFT forces

    Yeah, and if I tell you that you should do business with me or else, you know, accidents happen, I'm not really forcing you, am I?

    --
    ___
    If you think big enough, you'll never have to do it.
  81. Good by rzbx · · Score: 1

    Maybe laptop and desktop prices will drop, and we will finally be able to buy them without an OS installed or Linux installed. I considered buying a laptop from Dell, but I won't simply because Windows is installed. MS must be severely punished for such acts. Also for all there previous actions too. Justice!

    --
    Question everything.
    1. Re:Good by Anonymous Coward · · Score: 0

      You're such a looser. "Oh, Windows is installed and if I use it, even once, I can't be l33t anymore." Grow up. Get the freekin' laptop and format/repartition the harddrive like the nice troll you are.

    2. Re:Good by Kredal · · Score: 1

      The previous poster doesn't want to support Microsoft at all, which is what he would be doing, just by buying the laptop. It doesn't matter one bit what he does with it once he has it... MS already has his money.

      --
      Whoever stated that signature sizes should be limited to one hundred and twenty characters can just go ahead and kiss my
  82. charge OEM's full retail across the board by BroadbandBradley · · Score: 2

    problem solved, no more MS windows PC. I mean who would actually PAY for Windows?

    ;-)

  83. OEMs should thank MS by simetra · · Score: 1

    Really... how did they sell millions of computers? They've made their own ass-load of money by including windows(tm) on their pcs. I hate MS as much as the next guy (IHMSAMATNG), but really, you can't have your cake and eat it too.

    --

    "Would it kill you to put down the toilet seat?" -- Maya Angelou
  84. Call Gateway and ask for a Linux PC by BroadbandBradley · · Score: 3, Insightful

    I wonder how many calls it would take?

    Call Gateway Sales
    Home or Home Office 800.846.4208
    Para Información sobre
    "Oficina en Casa" 888.299.7512
    Any Size Business 800.846.5211
    Education 800.211.4952
    State/Local Government 800.211.4952
    Federal Government 800.216.2940
    International Sales 605.232.2191
    Remanufactured PCs 800.846.3614
    Add-On Sales 800.846.2080

    1. Re:Call Gateway and ask for a Linux PC by Uttles · · Score: 2

      I did it! I said "oh, no Linux support? well make a note that you just lost a potential sale because of that position. Thanks!"

      --

      ~ now you know
  85. My experience by Anonymous Coward · · Score: 0

    With my current box, I went the Mom & Pop route. I told them the parts I wanted. They asked me if I wanted Windows 98 or 2000? I told them I didn't want an OS (I was installing FreeBSD).

    They then told me that they couldn't install the hard drive if I wanted a computer without a MS OS. I said that that was OK. It's a simple matter to screw in a hard drive, after all.

    When I picked up the box, everything was assembled anyway.

    1. Re:My experience by sphealey · · Score: 2
      They then told me that they couldn't install the hard drive if I wanted a computer without a MS OS. I said that that was OK. It's a simple matter to screw in a hard drive, after all.
      Then you pulled out your identification as a representative of the BSA and said, "would you prefer to pay $250,000? Or spend 10 years in federal prison? Or both?".

      Microsoft (and all large software houses) operates on the same principle as the IRS: They don't have to catch everyone violating their licensing agreements. They just have to catch enough, and punish them harshly enough, to keep the rest scared.

      sPh

  86. Nope. Try again. by Anonymous Coward · · Score: 0

    It was the customers (the lack thereof) that caused Dell to dump Linux.

  87. I just experienced this by crond · · Score: 2, Interesting

    I'm going to buy a Dell laptop. On their website you can customize the laptop fairly much, including operating system and office package.

    But, suprise suprise, on the menus you can just choose between Microsoft products, and 'none at all' is not an option.

    So I phoned their sales department. 'Why can't I deselect Windows and Office?', I asked. The drone at the other end told me that virtually everyone wanted Windows on their laptops, so it wasn't there. So I told him that I was not one of those 'virtually everyone', and didn't want it.

    'No can do', he told me. They apparantly had a deal with Microsoft, which required them to ship -all- computers with Windows.

    I didn't quite believe it. I live in Norway, and I've always believed that our laws is more consumer-friendly than what's the situation in the US.

    So I asked him if it really was legal. He didn't know, but the one thing he _could_ tell me was that without that agreement, the boxes 'virtually everyone' bought (including Windows, that is), would be so expensive that they wouldn't be able to compete other laptop-makers.

    So, there I am, with no other option than buying Windows and Office lisences I won't be using anyway.

    But then one thing occured to me. Nobody can _force_ me to accept the EULA that comes with Microsoft's products. So if I buy my laptop with Windows and Office, and refuse to accept the EULA, I should be able to return the software to Microsoft and get my money back. That's how it _should_ be, at least.

    Can somebody confirm that the EULA gives you this possibility? Have anyone tried this? Any success?

    I will certainly try my best to kick up a fuss if I can't .. write to all consumer-rights organizations and consumer TV programs. I think it's worth the effort, don't you?

    --
    Tore

    1. Re:I just experienced this by Xofer+D · · Score: 2
      But then one thing occured to me. Nobody can _force_ me to accept the EULA that comes with Microsoft's products. So if I buy my laptop with Windows and Office, and refuse to accept the EULA, I should be able to return the software to Microsoft and get my money back. That's how it _should_ be, at least. Can somebody confirm that the EULA gives you this possibility? Have anyone tried this? Any success?
      Um, Yeah. Some people have tried this.
      --
      The Signal/Noise ratio can be improved in two ways. Remaining silent is the OTHER way.
    2. Re:I just experienced this by Anonymous Coward · · Score: 0

      Yes, you can do this. There is a web site called "linux on laptops" (http://www.linux-laptop.net/) that describe the experiences several people have had with this same procedure. Follow the "Windows Refurnd Center" highlight on the main page for more information.

    3. Re:I just experienced this by mhesseltine · · Score: 1

      Search google.

      Eric S. Raymond, author of The Cathedral and the Bazaar, was involved in this which is where I first heard of it.

      --
      Overrated / Underrated : Moderation :: Anonymous Coward : Posting
  88. Slow down Cowboy Neal with a thick wooden club! by Anonymous Coward · · Score: 0

    Slow Down Cowboy!
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  89. Ya gotta love it... by Darth+Yoshi · · Score: 1
    The new license "contained provisions that were more favorable to Microsoft than the previous versions of the corresponding agreements Gateway had negotiated," Fama [Gateway's group counsel] testified.

    [Jim Desler, Microsoft spokesman] said. "All of the government parties, including the non-settling states, took the position that Microsoft should have uniform terms among OEMs."


    Clearly the intent of imposing uniform terms was to mandate less restrictive contracts with OEMs. You gotta love it when Microsoft imposes the most restrictive contract terms with their OEMs and then blames it on the courts. That's chutzpah!

    --
    // TODO: fix sig
    1. Re:Ya gotta love it... by demon · · Score: 1

      "Uniform" and "fair" aren't necessarily the same thing. Microsoft's new licensing terms may be "uniform", but it certainly sounds like some of their OEM customers might argue with you about them being "fair"...

      --

      Sam: "That was needlessly cryptic."
      Max: "I'd be peeing my pants if I wore any!"
  90. But while we're here talking AROUND.. by Anonymous Coward · · Score: 0
    ..the issue, the fact that this testimony may get thrown out at some point in this process goes to show how bad the gov't handled this case. This should have been one of the central tenets of their argument that MS abused their monopoly.

    It would be great if the OEM licensing agreement:

    • didn't require or reward OEMs for installing Windows on every machine;
    • for those machines that include Windows, it was line-itemed on the invoice to indicate the actual cost or pass-through price for each customer;
    • licensing could be handled on an organizational level, not a per machine level;
    Talking about breaking MS up or other proposed remedies still skirts around MS' primary advantage: their monopoly power to get Windows onto every box. Considering that this is MS' most important strategic focus, why not just look to weaken this advantage a little? Having multi-MS selling the same thing is beyond stupid and indicates how bizarre the legal minds have become in addressing the problem.

    Is MS so damned slippery that their strategies, KNOWN TO EVERYONE IN THIS GIGANTIC INDUSTRY, evade every possible imagined and reasonable resolution? It seems reasonable to imagine that as powerful a competitor as MS is, they're that powerful a legal adversary, but a good start would be hitting them where THEY think it's most important.

  91. Thoughts from the AC. by Anonymous Coward · · Score: 0

    First, $10 discount? My arse. Go look at the prices of MS products in stores, or even online OEM's 'bundled' with the purchase of any other piece of hardware.

    $10? Again, my arse. MS offers a lot bigger discounts to OEM's than that.

    Second, I'm not worried. The 'big name' vendors are slowly collapsing under their own weight, and there's talk of buyouts and mergings and such.

    What happens when they all eventually merge into one brand?

    They gain the power to stand up to Microsoft.

    No one I know would take a Sorny or a Panaphonics (Simpsons reference, think generic) over, say, a Dell.

    Hell, many people don't even like 'generic' supermarket brand food. And computers are a bit more of an investment than a $.99 bag of chips.

  92. Product endorsement by Vegetable+Soup · · Score: 1

    The endorsement factor is valid only because Gateway sells Microsoft and no other OS's. If the grocery store sold only Pepsi and no Coke, that would appear to me (the consumer) that they endorse Pepsi and not Coke. There could be a completely differnent reason (for example, Pepsi's contract with the grocery store forbids them from selling Coke), but as a consumer, I do not know this.

    It works the same way with operating systems. Many consumers will look at Gateway selling only Microsoft operating systems and believe Gateway made a decision not to sell any other operating systems. This gives Microsoft a competitive (although stronghanded) advantage.

  93. Bingo. by Anonymous Coward · · Score: 0

    n/t

  94. What matters in OEM OS counts by WillSeattle · · Score: 2, Interesting

    First, there's licensing restrictions - which obviously should be changed since they are anti-competitive.

    Secondly, some of us (ok, maybe just me) are members of things like Neilsen Home Shoppers (you know, the guys who measure what you buy) or other programs - we need to ensure that every time we buy something it has Linux. Or, if not, that we BUY (not d/l for free) Linux as an add-on.

    If it's not measured, it doesn't exist - that's how they think.

    Third, if you own shares in one of the OEMs - send an investor relations email to the board, politely asking why they are not maximizing your shareholder return by offering a Linux version. Tell them to setup a shell corp if they have to, which buys the box and then sells it to the mother corp (Win OS) and another corp (Linux/BSD/etc).

    If you are a shareholder, file a shareholder resolution. No, I am not kidding. Do this now. And then expense showing up at the annual meeting to push this. Keep it short and sweet.

    This is war. Take no prisoners. Refuse to accept the ground rules imposed by the enemy - impose your own rules, choose your own ground. Fight them where your weapons are strongest, not the lawyer/contract arena they excel at.

    But don't play their game - play yours.
    -

    --
    --- Will in Seattle - What are you doing to fight the War?
  95. Market Forces by _Sprocket_ · · Score: 2


    So why did VA stop selling Linux systems? Alleged Microsoft pressure on mainstream vendors not to sell Linux should only have made things better for VA, assuming there really was a market for Linux desktops. But the fact is that there is no serious market for Linux desktops.


    The hardware industry has been fighting for survival. Even the big names have been taking hits. Was VA Linux in a better situation?


    VA Linux put out nice enough systems. But they were expensive. And you hardly had to buy VA Linux hardware to run Linux. One of the places I saw VA Linux boxes also included Sun and Compaq hardware. They ran Solaris, Windows, and Linux. And Linux was found on more than the VA machines.


    Is there a market for Linux? Yes. But it is not a market one can corner. And offering Linux does not provide a shield against the tough times the industry in general has been facing.

    1. Re:Market Forces by lseltzer · · Score: 1

      I think the important point is that VA was obviously losing money on their PC business. And remember, this is in spite of a large software cost advantage vis-a-vis most PC vendors. It's perfectly reasonable to assume that major PC vendors also legitimately see no market in Linux desktops.

      >>And you hardly had to buy VA Linux hardware to run Linux

      Exactly, this dynamic works for Dell and Gateway and IBM too. Why should people buy Linux systems from them when they can home-grow systems?

    2. Re:Market Forces by _Sprocket_ · · Score: 2


      I think the important point is that VA was obviously losing money on their PC business. And remember, this is in spite of a large software cost advantage vis-a-vis most PC vendors.


      IS there a large software cost advantage? Sure. If VA had to license Windows, there might have been a hefty investment. But unit-for-unit, one has to wonder exactly what Windows costs one of VA's much larger competitors... such as Compaq. Remember Windows Refund Day? OEMs began claiming the price per unit somewhere around $5 (though there was a lot of hemming and hawing on the point).


      It's perfectly reasonable to assume that major PC vendors also legitimately see no market in Linux desktops.


      Its possible. But VA's business (failure?) does not neccissarily prove the point. You could take VA Linux and claim it proves "the PC is dead."


      Ultimately, VA was trying to grow quickly at a very tough time for the IT industry. And they were having to compete for what ammounted to hardware sales within that tight market. It seems that they were unable to do this. It is not clear that it had anything to do with the OS loaded on their machines.



      Exactly, this dynamic works for Dell and Gateway and IBM too. Why should people buy Linux systems from them when they can home-grow systems?


      Why should people buy Windows systems from Dell, Gateway, or IBM when they can home-grow systems?
  96. Microsoft has Gateway by the utters! by MrJerryNormandinSir · · Score: 1

    Yeah I tried to order a box with No OS!
    I said I didn't need one because it was going to
    be a Linux box, well they couldn't ship a box without an OS... So, I built one!

  97. The simplest test by snarfer · · Score: 1

    An additional OS in a dual-boot configuration would allow a computer maker to advertise that they offer customers more than all the other computers, which are all "Wintel" boxes, and are all the same. It would "differentiate" that computer from all the others.

    This would be an obvious marketing advantage. Yet not a single computer manufacturer does this.

    You can not buy a computer that has Windows and another OS installed.

    This is proof that Microsot is using its monopoly power to stop competition.

  98. Microsoft's new slogan by AlgUSF · · Score: 1

    Innovation through intimidation

    Or, you do business with us exclusively or don't do business with us at all

    --


    I want my rights back. I was actually using them when our government stole them after 9/11.
  99. Re:Dell didn't speak, the market did. maybe by TimButterfield · · Score: 1

    The article you are quoting is related to the original slashdot story of August 2nd and not the follow up story on March 19th, which is what I linked to.

    To respond to your quote, though, aren't most business decisions financial ones? While the decision may have been influenced by the slow PC market, I am also of the opinion that was not the only factor involved. Of course, without being privy to inside correspondence/discussions, this can only be speculation on my part.

  100. Who chose the contract? by Arandir · · Score: 2

    It seems that if an OEM does not ship Windows on every PC they ship that they are severely penalized, and can have their license revoked."

    If the OEMs negotiated contracts giving a discount if Windows is shipped on every PC, then it is the OEMs who are breaking the contract by not shipping every PC with Windows. If they don't like this situation, then they need to negotiate a new contract that gives them a slightly less discount for shipping slightly fewer Windows PCs.

    If you're a Gateway, HP or Dell, Microsoft may have you by the balls, but you STILL have Microsoft by the short and curlies. The marketplace may demand that you ship with Windows, but you don't have to ship consumer models with MSOffice, you don't have to ship server models with IIS or Exchange, you don't have to ship MS mice with every PC, etc.

    If all else fails, sue Microsoft under the terms of the US Commercial Code for selling you non merchantable goods.

    --
    A Government Is a Body of People, Usually Notably Ungoverned
    1. Re:Who chose the contract? by Todd+Knarr · · Score: 2

      I think you miss the point: Microsoft won't negotiate on that point. You either take a contract to ship Windows on every PC or you won't have a contract. With the retail price of Windows being greater than their profit margin on a box, this means they've got to increase the price of their systems noticeably (10% or so) above the prices of their competitors or lose money on each sale. You can't do either of those and stay in business.

    2. Re:Who chose the contract? by edbarrett · · Score: 1
      If you're a Gateway, HP or Dell, Microsoft may have you by the balls, but you STILL have Microsoft by the short and curlies.

      Just please don't invite the goatse.cx guy to the porn shoot, okay?

    3. Re:Who chose the contract? by Arandir · · Score: 2

      From my remembrance of the evidence, Microsoft never refused to negotiate. You wouldn't get the full discount your competitor was getting, but you would still get a discount off of the standard wholesale price.

      The arguments (whines) I remember were along the lines of "but Microsoft won't give me the same discount as the other guys even though they're shipping all their PCs with Windows and a Windows advert sticker and I'm not." If you want the same margins as your competitor whose in bed with Microsoft, then you had better be prepared to lube up.

      I've been a salesman in an commodity industry with a monopolist supplier. I know what it's like to stay independent while all your competitors bend over for the monopolist. But we didn't go out of business, even though we had to pay 10% to 25% more for the same components. We even managed to successfully compete with the monopolist's company stores. That's because we differentiated ourselves with sales, service and quality.

      My whole point is that the OEMs are in their situation because of two things: A) they won't differentiate themselves, and B) they bend over every time Microsoft drops a bar of soap.

      If Gateway didn't strive so hard to be the most generic OEM amongst a field of generic OEMs, they might actually have a margin they could play with.

      --
      A Government Is a Body of People, Usually Notably Ungoverned
  101. Comment removed by account_deleted · · Score: 2

    Comment removed based on user account deletion

  102. What did he say? by Nugget · · Score: 2

    Errors like this are pardon parcel with learning english from talking and hearing and not by reading. I mean, nobody expects a slashdot post to win the pullet surprise or anything, but he could of spent a moment proofreading his post. For all intensive purposes he has made himself look like a real moron.

    1. Re:What did he say? by glitch! · · Score: 2, Funny

      Errors like this are pardon parcel... ...nobody expects a slashdot post to win the pullet surprise...

      Hey, that's a pretty funny way of making a point. Did you just invent these, or did you get them from some humorous reference ("Excrements of Style"?)

      --
      A dingo ate my sig...
    2. Re:What did he say? by Nugget · · Score: 2

      All four are real misstatements that I've encountered at least once in the real world. If there are more than five errors, well, I guess I'm as much of a moron as the people I tried to mock.

    3. Re:What did he say? by Fjord · · Score: 1

      I must be a moron. I can't see the fourth.

      --
      -no broken link
    4. Re:What did he say? by Ioldanach · · Score: 1
      Errors like this are pardon parcel with learning english from talking and hearing and not by reading. I mean, nobody expects a slashdot post to win the pullet surprise or anything, but he could of spent a moment proofreading his post. For all intensive purposes

      Okay, now *I* feel like the moron. I read it, laughed, then read that you'd put four errors in. I must be a moron, since I can't see the fourth...?

    5. Re:What did he say? by Nugget · · Score: 2

      1. "pardon parcel" should be "part and parcel"
      2. "pullet surprise" should be "pulitzer prize"
      3. "could of" should be "could have"
      4. "for all intensive purposes" should be "for all intents and purposes"

      All four fall within that same category of error resulting from mis-hearing the phrase before or in lieu of seeing it written correctly.

    6. Re:What did he say? by glitch! · · Score: 1

      All four are real misstatements that I've encountered at least once in the real world.
      I doubt anyone else will see this, but your funny mistakes gave me the urge to start a web page for "Excrements of Style" :-)

      http://www.peckerheads.com/excrements.html

      --
      A dingo ate my sig...
  103. 15 U.S.C. secs. 1-7 may prohibit "get togethers" by Eric_Grimm · · Score: 1


    The Sherman Antitrust Act applies to Microsoft customers just as much as it does (perhaps moreso, under the Bu$h anminstration) to Microsoft itself. And the Sherman Act prohibits unlawful exercise of Monopsony power (collusive exercise of market power among purchasers) just as much as it prohibits unlawful conduct by Monoploies and Oligopolies (individual sellers or collusive cartels).


    So the purchasing cartel you propose is potentially problematic.


    This is not to say that Microsoft necessarily wins if it files an antitrust suit against Dell/Gateway/Compaq, et al., in the event of such a collusive project -- but how would you like to be one of the companies on the receiving end of such a suit by the "injured" Microsoft?


    Section one of the Sherman Act states:


    Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $10,000,000 if a corporation, or, if any other person, $350,000, or by imprisonment not exceeding three years, or by both said punishments, in the discretion of the court.


    Simply put, Gateway. Compaq, Dell, and others are prohibited from knowingly colluding to dictate prices and terms to suppliers. I cannot answer definitively as to whether the "get together" you propose violates the Sherman Act, but I can say that Microsoft will not be tosed out of court on its ear if it were to sue to prohibit the course of action you propose.


    Eric C. Grimm
    CyberBrief, PLC
    320 South Main Street
    Ann Arbor, MI 48107-7341

  104. Microsoft had power all the way down the chain by sar · · Score: 1, Interesting

    I used to work for a company that outsourced tech support for gateway in 1997, and when that company decided to put its 'helpdesk' out of commission, I ran a linux box with ircd on it so the techs could use that as a community helpdesk. Gateway regularly did portscans on all its systems on its internal network, and when i came across the one with ircd, it contacted the company I worked for, had that box, and the one other box that ran Linux shut down, I was fired, as well as one other person, because we were not using a Microsoft licensed product for the project. It sounds really strange, but what happened, is Gateway contacted the company, said there was a "breach of contract," and told them to either fire us, or they were losing their account. So, since it was much easier to let two people go than 3/4 of the floor, they fired us, they told us why, and put "improper use of internet mail and news" as the official reason on our termination papers, to avoid any possibility of backlash in the future. How would that look to go to have to answer to the Better Busines Bureau, or wherever, with "we fired them because they were using something other than a Microsoft product." The company has sparc with solaris, but it is owned by Gateway, and is used for the telecom monitoring.

    --
    .
    1. Re:Microsoft had power all the way down the chain by Shuh · · Score: 1

      Mod this guy up. This kind of M$-only orthodoxy-gone-wild is exactly what people who just love their Microsoft game-boxen need to know.

  105. Solution by Anonymous Coward · · Score: 0

    Easy solution just by an Apple :)

  106. Glad to see they're finally pursing this angle.... by xjerky · · Score: 1

    ....as opposed to the ridiculous IE integration issue. I think MS was well within their rights to integrate IE into their system, even if it did hurt competitors, and it can be argued that Windows users benefit from the decision.

    However, I see no benefit from the exclusivity shit that they pull, and I think it will be much harder for MS to defend, both in the court of law and in the public eye.

    All of these attempts to rip IE from the OS make the government look infantile, and give the impression that they're just bullying MS for being successful. Concentrate on the exclusivity threats, and the case will look much better.

    --
    A sentence you'll never see on an Internet discussion board: "You know what? You're right."
  107. Re:Whoa by Anonymous Coward · · Score: 0

    Baby, baby c'mon, baby c'mon, baby c'mon, right muthafuckin' now!

  108. Walmart is not an OEM, just a retailer. by Anonymous Coward · · Score: 0

    Walmart isn't the OEM in this case.

  109. Software licenses are bogus. by A55M0NKEY · · Score: 1

    Software licenses are used to take away user's freedom to use that software. One such license that places restrictions on users' use of software is the GPL. If someone sells software, they should retain no more rights over that software than an author retains over a book he sells. That is, the only right reserved to the copyright holder should be the right to copy and distribute the work. You don't see the author of a physics textbook making students sign away their rights to apply the knowlege contained therein! If you buy a piece of software, and decide not to accept the license agreement do they give you your money back? NO! htey assume you've burned the CD, and tell you that you're screwed. If I buy something it's bloody well mine, and I any license agreements I click 'YES I agree' to are not binding since I took delivery of the product before being given a chance to read the license agreement.
    Who would not ignore a notice mailed from a car dealer that they may not drive their Ford on Wednesdays anymore. You already bought the car! If they wanted to make provisos they had their chance before the frikken sale.

    --

    Eat at Joe's.

    1. Re:Software licenses are bogus. by jcast · · Score: 1

      Quote one provision of the GNU GPL that places any more restrictions on the software than are on a random book.

      --
      There are reasons why democracy does not work nearly as well as capitalism.
      -- David D. Friedman
    2. Re:Software licenses are bogus. by A55M0NKEY · · Score: 1

      I wasn't trashing the GPL, I was merely stating that it does place restrictions on use ( eg no selling derivations ).

      --

      Eat at Joe's.

    3. Re:Software licenses are bogus. by jcast · · Score: 1

      Closing derivatives is not use.

      ``Use'' means running a program, reading a book, etc. Making a derivative is ``copying''. They're different.

      And, btw., you can sell derivatives of a GPLed work. It's just stupid, that's all.

      --
      There are reasons why democracy does not work nearly as well as capitalism.
      -- David D. Friedman
  110. Dell STILL sells systems with Linux by lseltzer · · Score: 1

    And Dell still sells Linux systems (http://www.dell.com/us/en/esg/topics/linux_003_pr oducts.htm). Why does Microsoft tolerate this situation?

    1. Re:Dell STILL sells systems with Linux by JordanH · · Score: 2
      • And Dell still sells Linux systems (http://www.dell.com/us/en/esg/topics/linux_003_pr oducts.htm). Why does Microsoft tolerate this situation?

      They've retreated from their visible "Linux Everywhere" position they previously held, even disbanding their Linux business division.

      Seems like they are still in the "meeting demand, but not creating demand" mode on the Server side.

      Without competitors like VA around, they don't have to push it anymore. The Linux community either buys preloaded from them or builds their own anyway.

    2. Re:Dell STILL sells systems with Linux by lseltzer · · Score: 1

      But Microsoft is in the workstation and server businesses, and they are better, more profitable growth opportunities for Microsoft than the desktop PC market that they locked up years ago. Why would you assume that companies like Dell can be bullied out of the desktop PC market by MS but not the server and workstation markets?

    3. Re:Dell STILL sells systems with Linux by JordanH · · Score: 1
      Microsoft is far more concerned about Linux inroads into the desktop. They feel that whoever controls the desktop ultimately controls the server. Linus has been heard to say this this, too, and it's why Sun pushes Star(Open)Office and Java so hard. They need to break the MS fist that controls the desktop. Ultimately, if MS holds on to the desktop, they could just turn around and make all the desktop apps not work with any servers but theirs.

      Remember that MS is currently playing as nice as they can to get past this anti-trust nuisance. With the clear evidence that's coming out that they are, in fact bullying the OEMs wrt to Linux, can you imagine what they would be doing without the anti-trust scrutiny they are getting now?

    4. Re:Dell STILL sells systems with Linux by _Sprocket_ · · Score: 2


      Why would you assume that companies like Dell can be bullied out of the desktop PC market by MS but not the server and workstation markets?


      You're jumping to the wrong conclusions. Obviously, if Dell can be bullied in the Desktop market, they can be bullied in the server market too. The point is that Microsoft allows a small server OEM market for Linux.


      Back to the "meeting demand, but not creating demand" concept.


      Linux has already gained ground in the server market. And any time Microsoft has anything near positive to say about Linux, it is in that context. Of course, there is a point where Linux is more of a threat to SCO and Sun than Microsoft for server market share. But that won't continue forever.


      The desktop is new ground for Linux. A lot of work has been directed toward this target. And it may or may not be suitable for you (IMHO its suitable for power users and complete neophytes). But any support in this market by a OEM is doing nothing short of expanding Linux market share.


      So how do we meet demand but not create it? Provide it as an option for servers if the customer walks up and requests/demands it. Otherwise, push Windows.

    5. Re:Dell STILL sells systems with Linux by elflord · · Score: 2
      And Dell still sells Linux systems (http://www.dell.com/us/en/esg/topics/linux_003_pr oducts.htm).

      They won't sell consumer lines with Linux installed. Last I checked, you couldn't even get an optiplex with Linux, you had to go with a server or precision workstation. Their Linux support is spotty at best.

  111. Windows Apologists Will Forget This... by Shuh · · Score: 1

    As soon as they click the close-box on the window! Then they will come back in the next "anti-M$," selling-PC's-without-OS's thread and scream about how Windows OEM-liscenses are not only okay now, but that they were never used to protect the monopoly.

  112. Fraudulent manipulation of capital markets by Anonymous Coward · · Score: 0

    Mafiasoft doesn't have to break legs. They just have to whisper to a handful of Wall St. analysts that "company X is no longer getting our best price on Windoze", and company X suddenly can't get anybody to buy their stock.

    Since capital markets today vastly more involve stocks than banks, most capital-intensive businesses (like hardware makers) are easily manipulated by whoever yanks the analysts' chains.

    Get Warped! Upgrade to OS/2 Warp 4.52.
    100% XP-Free.... You Know You Want It.

  113. Does anyone sell only Linux PCs? by A55M0NKEY · · Score: 1

    Does anyone only sell Linux PCs? If there were such an OEM, they'd have the market cornered 'cause none of the big-boy OEMs would be allowed by microsoft to compete with them. And not selling Windoze, they'd not be subject to bullying by micro$oft themselves.

    --

    Eat at Joe's.

    1. Re:Does anyone sell only Linux PCs? by Anonymous Coward · · Score: 0

      http://www.swt.com/
      http://www.buypogo.com/
      http ://www.linuxcomputersystems.com/
      http://www.micro nux.com/
      http://www.atipa.com/
      http://www.sunset systems.com/

      Just scratching the surface

  114. Cut the Gordian Knot! by Anonymous Coward · · Score: 4, Insightful

    One possible solution to the problem - let Microsoft "innovate" anything they want into the operating system, but prohibit them selling the OS to OEMs for a period of ten years. Just cut the relationship entirely - it's the ultimate leveling of the field, and removes all leverage that Microsoft has on the OEMs.

    OEMs would be free to sell machines with other operating systems, or none at all. Consumers would be required to buy Windows separately and install it themselves should they prefer that to whatever non-Microsoft OS the OEM preinstalled. This would also halt the other trend that MS and the OEMs are promoting - a lack of recovery disks.

    I think you'd see the following happen: Apple would immediately release an Intel version of OSX, since the business suddenly becomes interesting to them. RedHat, Mandrake, Lindows, and other as-yet unformed companies could raise the capital to make consumer friendly versions of their offerings.

    If you really want to get Draconian, use Microsoft's own arguments against them. They claimed that Netscape still had full access to the market via Internet downloads - so force them to offer Windows exclusively in the same manner.

    1. Re:Cut the Gordian Knot! by mpe · · Score: 2

      OEMs would be free to sell machines with other operating systems, or none at all. Consumers would be required to buy Windows separately and install it themselves should they prefer that to whatever non-Microsoft OS the OEM preinstalled. This would also halt the other trend that MS and the OEMs are promoting - a lack of recovery disks.
      I think you'd see the following happen: Apple would immediately release an Intel version of OSX, since the business suddenly becomes interesting to them. RedHat, Mandrake, Lindows, and other as-yet unformed companies could raise the capital to make consumer friendly versions of their offerings.


      Most likely you'd create a new customer service industry. Software installation and maintainance, for the home and other small user. This already exists to some extent...

  115. Why Linux costs more by pq · · Score: 2
    Why they charged so much is beyond me, but that is the reason why IBM didn't make money off Linux.

    Not meant to be flamebait, just anecdotal evidence from my attempts to order a Dell and an IBM machine with RedHat pre-loaded:

    1. Microsoft charges OEMs for a license for each PC shipped - not each PC with Windows, but each and every one they ship. This keeps piracy down, according to MS, by removing the incentive to ship "naked PCs".
    2. Now, to install and test RedHat on a machine, and to offer some support for it (sound card, monitor, etc) costs extra money.
    Add 1+2 and you see why it costs more for a PC with Linux on it. For our Dell server, the grant ate the extra 50 bucks, and I ordered with RedHat (6.1, in those days?) just to make a statement that we wanted it. For my Thinkpad, it wasn't worth it. In both cases, MS got their money.

    Of course, this is only my understanding, I could be wrong...

    --
    "I will take the Ring," he said, "though I do not know the way."
    1. Re:Why Linux costs more by lseltzer · · Score: 1

      This type of license has been illegal since 1995

    2. Re:Why Linux costs more by Grishnakh · · Score: 2

      Since when has Microsoft been concerned with legality? It's not like they have to worry about being punished for any illegal behavior.

  116. Build your own machine! by nvrrobx · · Score: 1

    I have an idea.. If you don't want Windows preinstalled on your machine, build your own. You can usually build a better quality machine for cheaper yourself anyhow...

    If people quit buying machines from the OEMs, do you think that might help?

  117. Vancouver BC, land of the OS free computer by Anonymous Coward · · Score: 1, Informative

    Virtually all the local small shops up here in Vancouver BC advertise their desktop computers without any OS at all. If you want an OS its extra. They easily beat the Dells and Gateways on price, but of course support means bringing the computer into their shop if anything goes wrong.

    Aren't there similiar small shops in most major cities? Why would anyone knowledgeable buy a desktop PC through one of the big shops?

    dell.ca - P4, DDR 128Mb ram, 20Gb drive Gforce II mx, MANDATORY winxp + works, 19" monitor, nic, dvd, 3 year dell warranty
    $2200 (CDN - worth about $.65 USD)

    local clone shop
    AMD 1.8 K266A MO, DDR ram 256Mb, Gforce 3, nic, optical mouse, 2x60Gb drive, no monitor, soundblaster 5.1, 5 speakers, NO OS, 52x CD drive, manufactures warranty on the hardware
    $1500 (CDN)

    Dell pluses - warranty, monitor.
    Dell minuses - no option to not get software, minimal RAM, smallish drive, real sound card is upgrade, no speakers

    clone pluses - more ram, choice of OS and software, better video card, larger drive, very flexible configuration, price
    clone minuses - minimal warranty

    The clone shops all advertise various package deals in the local computer paper, but you call them, ask for what you want and a few days later you come and pick it up. You can often save $500 or more dollars compared to a similiar deal with one of the larger outfits.

    The local clone shops are a particullary good deal if you want to upgrade an existing PC and just copy all your old software to the new PC.

    1. Re:Vancouver BC, land of the OS free computer by AnimeFreak · · Score: 1, Offtopic

      Here here, fellow Vancouverite.

      What makes our city much better than all the rest in North America is that our computer hardware prices are considerably lower than elsewhere due to us being a major shipping port in Canada and North America as a whole.

      Hell, a year and a half ago I bought a Celeron 600 and a MSI 6309 Motherboard together for only $130 CDN.

  118. I beg to differ (Re:Dell) by mamba-mamba · · Score: 1

    I tried to by a desktop-type system from Dell without an MS OS, and the salesman said that it was impossible. I found another much smaller company that was willing to do it and ordered my two computers from that company instead.

    I think Dell might offer linux on some of their models, but not the ones they position as desktop boxes.

    MM
    --

    --
    By including this sig, the copyright holders of this work or collection unreservedly place it in the public domain.
    1. Re:I beg to differ (Re:Dell) by mpe · · Score: 2

      I tried to by a desktop-type system from Dell without an MS OS, and the salesman said that it was impossible. I found another much smaller company that was willing to do it and ordered my two computers from that company instead.

      The reason is simply that the smaller supplier has to pay full price for each copy of Windows and they pay Microsoft only based on how many Windows licences they sell.
      The big OEM's get Windows a lot cheaper, but subject to the condition that they not only ship it with every machine they sell. In addition they have a whole set of other conditions about how they set it up, what they can and can't also supply with computers.
      Even though this was found to be illegal in the early 90's Microsoft continue to do it...

  119. Never complain about vendors on /. by gelfling · · Score: 1, Offtopic

    Or you will be modded down. We are happy shiny people. la la la la la.

    1. Re:Never complain about vendors on /. by gelfling · · Score: 2

      Never comment on other people's modding else you will be modded down. This is a Prozac moment. At 4:11pm EST Tuesday 03.26.2002 /. officially took itself too fucking seriously.

  120. sort-of by lseltzer · · Score: 1
    Penguin Computing sells "workstations," but only fairly high-end stuff, which means if you're a potential customer you can also buy from Dell, Compaq, IBM, etc.

    Your point, that a company that sold mainstream Linux PCs would have a wide-open market to themselves, is absolutely valid. Why is there no such company? Because it's been tried and it doesn't work. There's no market for such a company. To assume that Dell and Gateway don't sell them because of pressure by Microsoft ignores a far more obvious answer.

    1. Re:sort-of by _Sprocket_ · · Score: 2


      Your point, that a company that sold mainstream Linux PCs would have a wide-open market to themselves, is absolutely valid. Why is there no such company? Because it's been tried and it doesn't work. There's no market for such a company. To assume that Dell and Gateway don't sell them because of pressure by Microsoft ignores a far more obvious answer.


      To assume small hardware companies went out of business during a tough time for the entire industry because they sold Linux machines ignores a far more obvious answer.
  121. right here by martissimo · · Score: 1
  122. Gateway had the guts to tell the truth.... by Eric+Damron · · Score: 2

    I will miss their cute little cow commercials!

    --
    The race isn't always to the swift... but that's the way to bet!
  123. It *IS* a protection racket, but is possibly legal by HiThere · · Score: 2

    They are protecting you against the harm that they will otherwise do you, so it is a protection racket.

    OTOH, as MS sets the "official price" of Windows so high, they can claim that they are providing favored vendors with a price break. And if you sell a non-MS OS on your hardware, you obviously aren't a favored vendor, so you can pay full price (possibly less a volume discount, but still a lot higher than your competition). It's possible to stay in business this way, as Pogo, and a few other small vendors prove. But it sure isn't easy. And one always hears of stories that one of those businesses got to be too successful, and then experienced a "shippment problem". True or not, this has got to make it "exciting" to be in that line of work.

    And you need to write off most potential customers, because your costs for MS software will be, O, at a guess 5 times the cost that your competition pays. You don't qualify for the discount.

    This may be legal. IANAL. I don't feel that it should be legal, but it may be. Lots of things are legal that I don't feel should be (and conversely).

    --

    I think we've pushed this "anyone can grow up to be president" thing too far.
  124. A good example by MoneyT · · Score: 1

    If you want to read the best example and case of this, go to Be's website and read about their lawsuit againts M$. The official complaint is availible in PDF format and though a little long in the legaleese, reads like a story book.

    --
    T Money
    World Domination with a plastic spoon since 1984
  125. And to think... by Anenga · · Score: 1

    They were just sitting like little gentlemen together having laughs and sharing logic only a week ago in the Silcon Valley Summit III.

    Boys will be Boys.

  126. Re:Jack Ass Moderation by Anonymous Coward · · Score: 0

    Down with the moderators!! Bring down the Slashdot oppressor! Viva la revolution!!

  127. IE of Apple (slightly offtopic) by Corporate+Troll · · Score: 1
    IE for Mac OS X is not really a good product: large pages like slashdot's comment-filled pages take ages to load and to display locking up IE until it is completely loaded. This is not a problem, because on my x86 hardware I use Netscape and it has the same problem.
    However I have a bigger issue with IE for Mac. I suspect it leaks memory like a sieve: IE is one of the apps I use most on that machine and after 3 days the memory (I have 384Megs) starts to fill up. IE is the only app I have continousely open, so it can only be that!
    I wanted to switch to Opera (and register), but it relies on it's own proxy configuration instead of the one in the "System Preferences", which really sucks because I use that Mac during the day on the office network (which has a proxy) and during the evening on my own network which is a NAT.
    Is IE deliberatly "broken"? I don't know, but I know that it's not a great product.

    I even have a IE5.5 horror story on NT4, but that would bring me even more Offtopic, so I'll skip it.

  128. Thanks for those links to Gateway and Microsoft by Anonymous Coward · · Score: 0

    I might not have known who they were or what their Web sites were if they weren't included in the story.

    1. Re:Thanks for those links to Gateway and Microsoft by unconfused1 · · Score: 1

      I'm sure that YOU wouldn't have. ;-)

  129. Gateway testifies by the_only_panky · · Score: 1

    What about Apple? They're an OEM that doesn't ship Windows? From that point of view aren't the PC makers really being a bunch of cry-babies. After all, how much money would they be worth if Windows never existed, and how much would it cost them to support the 15 or so OSs that would be around if Windows hadn't dominated? "At Dell, we'll ship CP/M if that's what the user wants." Thank God Gates screwed everyone because the idiot-savants who write code would never be able to make an OS for the masses, and Apple would still be on 5.x since they never had to improve anything till Windows came along, and on the PC side we'd probably still be using amber screens and arguing whether DOS or CP/M is the superior OS. Great code is generally produced by super geniuses who have a hard time buttoning their shirts. Again, Thank God the autistic freak Gates screwed us all so we could now be having these multi-billion dollar arguments!

    1. Re:Gateway testifies by Anonymous Coward · · Score: 0
      You missed something. Apple can do what it wants to its own machines ... meanwhile ... M$ was forcing companies to certain actions. Comparing M$ to Apple (or car radios, softdrinks, fastfood, etc.) is invalid.

      Imagine the threats of revoking licensing made by M$ to companies that testified against M$. It must be difficult to tell the truth when M$ has the company's financial future by the nads.

      Could it be argued that the biggest mistake for OS/2 was to include support for Windows programs thus encouraging programmers to create only Windows programs? (write one version; runs on two OS's; add another Windows program to the market and look how popular Windows is!)

  130. Proof that the "settlement" isn't enough by dh003i · · Score: 3, Insightful

    This is just proof that the settlement isn't enough. MS should not be allowed to use predjudicial behavior in any manner. MS is a PUBLIC company. So, yes, they have the obligation to obey PUBLIC rules. It would be different if MS was a private company owned by one person; but its not.

    You can't refuse to sell black people food at publicly owned restaurants.

    Why should MS be allowed to PENALIZE companies for selling other OS'? Or for not selling ridiculously high quantities of MS products.

    This is just a method by which MS can unfairly maintain its monopoly, put itself ABOVE capitalistic competition.

    I don't see why people defend MS so much. Whatever you think of their products, whatever you think of whether or not they got to their present position by merit or fraud...they're still a monopoly. Monopolies are inherently not good. They are everything capitalism opposes.

    Even if MS were to play perfectly fair -- no crooked deals, no blackballing, no spurious lawsuit threats -- it still wouldn't be good enough. They would still hinder competition and deny consumers choice, if only by default.. Because they're so large, its impossible competing against them effectively; they can outspend you a million to one. Because they own so much of the desktop industry, few hardware or software developers offer software/driver versions for non-MS products.

    Let me put it to you this way. Lets just assume Gates was a saint, freakin' mother teresa, a Stallman on wheels. That still doesn't mean we should tolerate his current power. No matter how good the man, you wouldn't want to have a person be dictator of the United States, would you?

    Its the same thing with MS.

    Power corrupts. Absolute power corrupts absolutely.

    1. Re:Proof that the "settlement" isn't enough by waltc · · Score: 1

      The problem with all of this, which must have M$'s competitors chuckling with absolute glee, is that the things M$ is being accused of here--volume selling discounts, special promotional deals, etc., are being done routinely by every single major company in the US of A.

      Most people are just plain ignorant of how large-scale business deals are done, and so all of this stuff sounds very sinister and leaves the quite false impression that M$ is doing something unusual and harsh in its business dealings with its customers, when the fact is that M$ is doing what SUN, AOL, IBM, Intel, Dell, Disney, etc. do every single day. The difference is that these companies aren't having it all scrutinized in a court room by a judge who also doesn't understand the way business is done on this level in the US. Lots of people are just plain ignorant of these facts, and it's really too bad.

      What's really amzing to me is the "monopolist" findings in the first place. What competition did Standard Oil or AT&T have at the time they were declared monopolies and broken up? None, and that's why it's laughable to see M$, which competes with IBM, for instance, a company that every year grosses 5-6x the revenue M$ hauls in--yet IBM remains tucked away in the background never to be considered. How about the competition M$ engages in continuoulsy with SUN, a multi-billion-dollar-a-year hardware and software business which often competes directly with Microsoft. What about AOL? Even in the X-Box arena, the only hardware M$ really makes and sells as a "system", competition simply abounds out of the yin-yang against several powerful system vendors like Sony. So where does this nonsense come from that Microsoft has no competition? It's ridiculous, M$ competes furiously every day.

      But, see, now that M$ has been officially declared a "monopolist" (regardless of how spurious the grounds), the rules change and suddenly the government can actively discriminate against M$ and give it substandard treatment among all the other officially non-monopolist companies M$ competes with daily.

      Basically, the monopolistic finding is merely a pretense to allow government to regulate the company, an action brought about by years of intense and expensive political lobbyists paid for by M$'s competitors who simply were unable to keep up with Microsoft in the marketplace.

      So far, the government has set itself up as quite the dupe of these other companies and special interest groups, and seemingly has no idea of the extent it's being used. that such a thing could happen is remarkable, I think, an indicates just how sub-par our judicial system has become. Was Karl Marx right after all--is a capatilist government merely a reflection of economic interests in the society after all?

      The last point to me is the most telling. Gateway is complaining that M$ penalizes it by cutting off promotional funds if OEMs don't agree to exclusively sell Windows on all of their PC's. Gateway says it's a loss of $10 a box, which I agree can add up to a lot of money. But there's another side of the coin here too--does anyone really think Gateway would lose sales because it would add back in that $10 it supposedly lost from M$ to the price of its Windows systems? I mean, does anyone seriously believe that a $10 price-hike on Gatway systems will send the company to the poor house? Geez, that's ludicrous. Nobody--and I mean nobody, is going to refrain from buying a Gateway because of a $10 price hike on an entire PC! If they refuse Gateway, it will be for other reasons besides paying an extra $10 per system, I assure you. So to me that whole line of reasoning is ludicrous and hypocritical. Gatway could add $10 bucks to price of each system it sells and nullify the M$ advantage at the same time.

      Still another way to view the situation is that Gateway would then be free to offer Linux and other systems--even systems without an OS at all, and their $10 surcharge would eliminate the so-called penalties M$ wants to levy. Gateway might just be suprised if deamnd for OS-less systems climbed way up, or Linux systems increased--and the upshot is that Gateway might actually come out BETTER financially to tell M$ to stick it's $10 where the sun doesn't shine!

      But that's all a matter of individual choices Gateway has to make as a company, isn't it? They can either let Microsoft dictate policy to them, or they can tell M$ what they'll buy and what they won't buy, and set their own prices and standards. This is all a matter of Gateway looking for "easy money" which M$ is all too willing to provide--and Gateway is a taker. M$ *does* offer them other options--but it's entirely Gateway's responsibility if it chooses to try and get every dime it can squeeze out of M$ instead of to offset M$'s contributions through tiny system-price hikes, and the opneing up of choice in its product base for customers.

      Now, the only thing I thoroughly dislike about M$'s policies is the threat of terminating an OEM's license to sell its software if the OEM doesn't "play ball." I would favor some regulation there--most definitely. IMHO, the *only* legitimate excuse M$ ought to be able to use to cut off an OEM is non-payment for product. And that's it--there ought to be no more exceptions, period.

      Last, take a look at Dell, the most successfull of the sytem vendors out there. Wouldn't it be so much fun to examine the exclusive deals Intel has made with Dell to EXCLUDE AMD systems for Dell? Is this not the same thing, exactly that M$ is being accused of doing? I daresay Dell has preferential treatment from Intel in a number of areas in return for going 100% Intel. Is that any different at all from the preferential treatment M$ gives OEMs for going 100% M$? I can't see how it's a bit different at all. That's probably why Dell has so little comment on these issues, they'd really hate it if their preferntial deals with Intel were brought to light!

      But, you know, that's free-market competition in our economy, and all the players have choices--don't let Dell for one minute try and foist the scam that M$ effectively removes its options because of the $10 thing--I've already spelled out what they could do to solve that "problem" handily. Problem is, Gateway wants the easy money, and is simply scared to go another route. But the choice is still there. Dell may be a big company--maybe the biggest of its type--but there's no telling how many sales its lost because of its Intel-only policy. AMD popularity in the mainstream is growing by leaps and bounds, but Dell shrewdly plays that card to win concession after concession from Intel and so continues to exclude AMD choices for its customers. But that's Dell's choice--completely. Just as it is Gateway's choice to sell nothing but M$ oS's to get that $10 per machine. The idea that these multi-billion-dollar-ayear companies are being "boxed in" by M$ is no more sound that the idea that Dell is "boxed in" by Intel. The choices are there--but companies like Gateway are loathe to admit it.

  131. Re:Vancouver BC, Microsoft sympathy by SA3Steve · · Score: 1

    I believe Vancouver extended their arms to Microsoft about a year and a half ago when the case was starting and said that the company could move up there and they would be more than glad to have them. Microsoft would be a huge economic boost to them...so I guess they were just 'looking at the bottom line' as everyone here has been quick to blame Microsoft for doing.

  132. Coke != Microsoft by Karl+Cocknozzle · · Score: 2

    The big difference between Coke and Microsoft is that Coke isn't a monopoly.

    Coke is selling products in an industry with competition. MS is not. Coke cannot put a grocery store out of business, whereas MS could squash Dell like a bug if they cut off the "Windows air supply."

    Microsoft is a monopoly, pure and simple. Locking their competitors out of the marketplace is CLEARLY using their monopoly leverage to maintain said monopoly. I'm not sure how anybody could see it any other way (short of being paid off like George W. and Company...)

    --
    Who did what now?
    1. Re:Coke != Microsoft by mpe · · Score: 2

      Coke is selling products in an industry with competition. MS is not. Coke cannot put a grocery store out of business, whereas MS could squash Dell like a bug if they cut off the "Windows air supply."

      There is another difference a grocery store has a very broad base of products. Even if they were to stop selling carbonated soft drinks they would still have a viable busines. With many OEM's selling computers is a huge chunk, if all , of their business.

  133. Further News by hughjamton · · Score: 1

    Later in the news, scientists discover water is wet, gravity makes things fall, oh, and shit happens. BillyG sucks root at 11 !

  134. Gateway owned Amiga... by 8bahl · · Score: 1

    Did they feel that if they actually produced anything quality with Amiga products that there would be some back-lash by Micro$oft???

    MDK 8.2 is cool... Someone email me better info on how to install my tnt2... cuz what i'm hittin on google i'm gonna slap someone..

  135. MS - The Future by hughjamton · · Score: 1

    I know it's not a popular view,expect for /. :). BUT M$ broke the law ! Flamers tell me I'm wrong. Hmmm, I thought it was quiet out there. So, they broke the law, not a rule, not a guideline, but the crimial law of the US of A. No problems so far. So, the convicted party now wants to says that it wasn't an IMPORTANT law. Just one of those nusicences that comapanies have to deal with. So, we really didn't do anything bad, so why not just says uncle. Anyone sense an issue with this ? You broke the law, not a rule, not a guideline, the law, the thing that Congress & those other august individuals think should be the way the US of A operates. Still no flames I hope so far ? So, a convicted CRIMINAL is now arguing about how they should be sentanced ? Hands up those of you who think that if we replaced M$ with 'black drug dealer' that the sentance would be 15 to life ? I'm Scottish so i'm sorry if I'm missing something, but in Scotland if you break the law you DON'T get to arguee what your sentance will be, if the judge advocate says nine months, don't expect to see home for nine months. Why does M$ get to decide on the punisment that is laid upon it ? Rapist, muggers, murders, peodo's DON'T get to chinwag with the judge about whats 'right' as a punisment for a crime. The judge TELLS them what the punishment is. Why isn't this the case in the US ? Or didn't M$ break the law like the Supreme Court said ? Or does the 'Supreme' court really mean the 'Pointless waste of time' court ? Just a thought. BTW perhaps 1776 was a bad idea afterall

  136. Get a grip ! by Anonymous Coward · · Score: 0

    M$ BROKE the LAW. The US legal system said so ! Why do CONVICTED bad guys get to decide what their sentence will be ? PLEASE, think what would happen if 'M$' was replaced with 'drug dealer'. Do 'drug dealers' get to bargin with the court about their sentence ? BTW if the answer is yes your country has a MAJOR fscking problem to deal with. Just a thought, what do you mean DMCA ? ....

  137. which quake to use.. by zer0*ryok0 · · Score: 1

    yeh when it comes time for me to play quake

    i usualy roll a die to decide my eye candy.

    odds: TTYquake (the best imho)

    even: Xquake

    and in the chance it lands on 1, i play the origional linux quake.

    oh and a 6 is GLquake.

    --
    the only fact is that everything is an opinion
  138. Desperation move by Gateway? by Reziac · · Score: 2

    Gateway is down to about 7% of the PC market, and dropping rapidly (source: Gartner Group report in ComputerUser's hardcopy mag) and I gather is going deeper in the hole every quarter; consensus is that in a year or so, Gateway will no longer exist.

    That being the case, I have to wonder if this is in fact a last-ditch attempt to lighten the yoke of M$'s decidedly skewed OEM pricing.

    Not that Gateway's move was a bad thing by any means, but I just don't see it as being purely in the interest of promoting the action against M$. Methinks it may be more along the lines of "reduce what you're charging us for OEM Windows licenses, and we'll agree to drop our testimony."

    Of course, I may be just another paranoid conspiracy theorist. :)

    --
    ~REZ~ #43301. Who'd fake being me anyway?
  139. In other news by raelitycheckbounced · · Score: 1
    And in other news Microsoft/ Disney/ AOL/ TW corporation has aquired planet earth. Please report to your local lobotomy center for "social harmony adjustment".

    Any "fascists" who resist "social harmony adjustment", must be in league with the terrorists. Such criminals will be "deleted" upon conformation of thought crimes .

    That is all.

  140. Re:Glad to see they're finally pursing this angle. by Anonymous Coward · · Score: 0
    How the hell is browser integration into the OS supposed to be beneficial? Why would I need a 120 MB browser just to view the contents of my fscking HD and the space it consumed? It doesn't make any sense whatsoever to integrate an unsecure program onto an already unsecure OS opening it to countless vulnerabilities and bugs that cannot be isolated to the OS code or the browser code.

    I thought the OS was the intermediary between the hardware and the software until M$ proved me wrong by giving the OS the ability to surf the web and let software/programs have complete control of the hardware.

    A simple text editor is more important to an OS than a browser ... THAT should have been integrated into the shell with limitless capacity and hex-dump support so that I can view any file without worrying about file associations.

  141. You completely missed his point by DunbarTheInept · · Score: 2
    His point wasn't that installing linux on a windows machine is hard, but that it gets recorded incorrectly by the vendor as "Here's a guy who uses Windows on his new machine he just bought from us." This is because there is often little choice in the matter, or because if you have to pay the Windows tax anyway whether you receive it or not, you might as well receive it so you don't totally waste that money in case you need a copy of Windows in the future for something.

    The truly insidious thing about having to buy Windows no matter what is that it leads to false marketshare data that says hardly anybody ever owns anything but Windows, which leads other companies to support nothing but Windows.

    --

    Don't label something "offtopic" unless you know the topic well enough to tell what's on topic.

  142. Revisionist History by Anonymous Coward · · Score: 0

    ". . . MS had to push. . . "

    Wrong. MS got a fairly exclusive contract with IBM because Gates' mom served on a United Way board with some IBM execs.

    ". . . to get themselves pre-installed. . . "

    Wrong. MSDOS was not *themselves*. It was the sweetheart deal that IBM gave Mary Gates' little boy. MS didn't have an OS, all they had was BASIC. The MSDOS they sold to IBM was QDOS that they had bought.

    ". . . still fighting tooth and nail against competitive offerings. . ."

    Wrong. There was no fighting. IBM pushed MSDOS down the customers' throats. Competitive offerings had no chance. Remember this was in the days before there were clones, even.

    ". . . the shoe's on the other foot regarding their relationship with OEMs."

    Wrong. The shoe was never on the other, other foot. MS always had the upper hand.

    ". . . your servant is your master"

    Wrong. You took the wrong snippet. The only time MS has been a servant is in their service to SATAN. Try the preceding lines instead:

    "Mephistopheles is not your name/But I know what you're up to all the same."

  143. Re:OS Graveyard? ... only for those cheap* by vortexau · · Score: 1

    Since MOST seem to want a CHEAP x86 - there's no other choise other than to build-y-own (x86).

    The other (not so cheap) choise for Linux is (non-MAC) PPC!

    and that ties in with the fact that AmigaOS is not dead - pre-release Eyetech A1 PPC boards run Linux!! http://www.eyetech.co.uk/

    .

    --
    (David Bowman, EVA near HUGE Monolithic Win-PC in orbit around Jupiter) "My God - its full of Malware!"