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California Consumers Settle MS Antitrust Suit

Posted by timothy on from the but-the-customers-shrug-and-move-on dept.

lseltzer writes "According to AP, $1.1B in Microsoft products will go to California consumers to settle antitrust claims against the company. I bet the lawyers don't get paid in software." Actually, the article says that those who apply for some of the settlement will receive "vouchers redeemable for any manufacturer's computer-related products and software."

6 of 274 comments (clear)

  1. MS always come up with SLAP in your face solution by oktokie · · Score: 5, Interesting

    I am not sure if the Windows ME and Windows NT which came with my desktop and server is refundable...
    I am pretty sure that most of their money is made on their crappy OS which I was forced to pay when I purchased my hardware to run BeOS and Linux...

    They have so much money so, $1.1 Billion dollar penalty is a drop in the bucket. Let say that parking ticket in the town was $30 per violation.
    If illegal parking brings $110 profit because there were no other competitors which knows town officials well enough..and had money to pay off violation.. they still make $80 profit... as long as they make profit...they will ignore the rules and regulations which normal businesses are bound to...

    This is really sad...

    Well... now we have a tax cut for riches to worry about.

  2. give the vouchers to the state by Petrox · · Score: 5, Interesting
    Microsoft had initially hoped to donate this amount in-kind to schools, right? In other words, Microsoft had wanted to donate this amount in software and other Microsoft products. Ostensibly, the schools were to receive the benefit. The problem from the perspective on many individuals and competitors (such as Apple) was that this would allow Microsoft to extend its monopoly into a market it didn't already have a monopoly in.

    Today, we have this settlement, which allows consumers to claim a voucher. We also have a request by California Gov. Davis to cut funding to social services and education, as well as to increase state income taxes. Consumers should be allowed to settle their increased tax bill by handing over their settlement voucher to the California government, in exchange for a guarantee that the voucher would be used to purchase computer technology equipment and other educational resources for state schools. Perhaps also the California government should be awarded any unclaimed consumer vouchers after a certain (short) settlement period. This way, schools would be able to purchase whatever resources best fit their needs (instead of having free Microsoft products handed to them), and some of the sting of the increased taxes could be reduced.

    Just a thought...

    --
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  3. I'm not an accountant by joeflies · · Score: 5, Interesting
    but is the reason for doing these deals is that it gives Microsoft a tax break? Can't microsoft write off product/licenses given away (as compared to withdrawing the equivalent cash out of the revenue stream)?

    I'm just trying to get a grasp on what the real financial impact is here (and whether if it is really a penalty)

    1. Re:I'm not an accountant by jsse · · Score: 5, Interesting

      Definintely. Microsoft could find a way to write it off as a tax donation, and they could actually cash in profit in the long run in future licensing/upgrading deals.

      However, this is not the worst part of this settlement. Apple's big stake in the educational market could be jeopardized by Microsoft pouring in millions of dollars of free software.. The sounds crazy, the settlement is doing exactly the thing that Micosoft was being sued for.

      Where is justice?

  4. Re: Software cost by martin-boundary · · Score: 5, Interesting

    Actually, what would be funny too is if Red Hat did a quick advertizing blitz offering free boxed copies of Red Hat to anyone willing to prove that they bought some hardware with their refund voucher. They could even offer to preinstall the software on selected hardware sellers products. Just an idea.

  5. What about GNU donations? by egil · · Score: 5, Interesting

    Wouldn't it be appropriate to use as many as possible of these vouchers for a purchase from FSF? Perhaps the FSF could make some sort of micro-edition of Gnu software to be bought for download (i.e. minimal cost for FSF)?