A Look at Microsoft's Regulatory Problems
jrexilius writes: "The Economist has a great article on the state of the EUs anti-trust case against microsoft, background, and future troubles with google. One interesting comment was 'Microsoft is preparing to use its dominance in web-browser and operating-system software to promote itself in yet another separate market--search engines this time'."
This is exactly what REALLY ticked me off with them (in the IT adm position no less). I put up with their marginal quality on the desktop up until this point. Sure, part of me still wished I had gone OS/2 there as well, but I digress. I certainly still remember buying PC's that I had to pay the Windows tax on ... even though they still run Linux to this day (except one actually which is one of the Netware servers).
Microsoft may some day conclude that the costs of constant regulatory battles--legal costs, fines, bad publicity, and bad relationships with governments--exceed the benefits of its Windows monopoly.
One can only hope. In the mean time it's still Linux in the data-centers and my basement for that matter. OS.X on my desktop, thank you very much. And yes, they talk NFS and not SMB with each other as well. It's faster... You know what I've learned at the offices that have agreed to run Linux and/or Mac's? Within one year it's obviously cheaper and faster than before. Almost ironical after reading all the Microsoft funded ROI type studies showing the exact oppisite. I thought something smelled fishy.
For users, changing operating systems, and even browsers, can be quite painful. In the case of an OS, old apps might nor work, and you might have to learn a new interface, and there may even be a cost of purchasing the OS. For browsers, it's hard to become aware of alternatives (for regular folk) and a download (on dialup) may take a while. For search engines, though, it's simply a matter of loading a new page, and maybe changing a setting somewhere. Not to mention the fact that even common folk know about Google, and it's become a part of the language. MS can't just "win" the search engine war by pointing users there by default.
Microsoft may have software on the majority of computers sold... but my god, we all use google.
In the land of pirating with ease... the man who holds the data, not the software, will win.
Bill isn't dumb... and realizes this; thus, the push into the search engine world.
One more reason that I really like google.
Davak
As far as I know, Microsoft has only made money in areas where the company has a temporary monopoly, or where being aggressive temporarily makes a profit.
Microsoft has a history of bad management, especially in thinking that the company can be aggressive toward customers, without paying any penalty.
If someone had a monopoly on water, he would make so much money that he would make Bill Gates look poor in just a few days. To unskilled observers, temporary monopolies make those associated with them look like skilled businesspeople.
When you are a billionaire, what is your biggest need? Is is to make more money? No, your biggest need is for connectedness with other people. By his aggressive behavior, Bill Gates has enforced disconnectedness, and he is in that sense a poor man.
... are that
:-))
1) MS might be forced to either bundle competitors (Go Ogg!) or disable Windows media (which the commission don't seem to fancy)
2) The commissioners claim to have learnt from the mistakes of other regulators when dealing with MS, and have pre-emptively included a number of 'you can't do it *this* way' examples in their recommendations
Simon
Physicists get Hadrons!
I don't know about everyone, but I'm not a Microsoft Hater, but I'm not a lover of them either. I don't think they 'won' the battle with the US courts, I think they bought the president. Pretty lame anti-trust slap on the wrist only after Bush comes into office. Prior to that it was looking like they were going to break into bitty pieces.
Just my viewpoint.
As a rock-in-roll Physicist once said, No matter where you go, there you are.
I still find google incredibly useful. It turns up things no other search engine does for me. An they should not try to copy Yahoo. If I want yahoo, I will go to yahoo. Each engine has its strengths. The trick is to be distinct so that users know which engine turns up the best results for different types of searches.
Google has more data that Microsoft. Google is a better search engine than MSN. I don't think that anybody disagrees with this. However...
The next step, inevitably, will be to integrate such search functions into Windows, on the grounds that it constitutes a core technology that should be part of the operating system. In his keynote speech at last November's Comdex show in Las Vegas, Mr Gates demonstrated a prototype technology called "Stuff I've Seen" which does just that. It allows computer users to search for context-specific words in e-mails and in recently visited web pages, as well as in documents on their computers.
Microsoft has it's reaches into the majority of homes and businesses in the world. As broadband always-on internet becomes more popular, more and more services will really be clicks to other sites.
Here I describe one of the ways that microsoft uses this in the new version of Word as a translation machine. The information goes out onto the internet and word brings you back the information pretty seemlessly.
This is where Microsoft knows how to crush their enemies. By using easy clicks with integration, they can direct people to Microsoft search, translation, music, or whatever.
As the article states, before long your searches and data will be references my Windows software in multiple ways. Windows doesn't just want the web integrated into your system... they want their web integrated into your system.
Davak
In the last few years there has been a lot of hype, at least with business folks, that Web sites like Yahoo, Google, MSN, Netscape would become big "Portals." on the Internet, driving all others into obscurity. It sounds like Microsoft to a certain extent may still believe this. You control the results of the search, you are in a position to profit from it. To quote the certain to come business advice:
(1) Leverage monopoly to get into search engine business
(2) ??
(3) Profit!
What I've seen in practice however, is quite different. It seems as if the new users tend to get sucked into the "portal" concept when they sign up with Earthlink, MSN, etc. But as they become more Internet savvy, they migrate and spend less and less time on those sites. It's like a giant ponzi scheme... once they run out of new people to sign up, they're done.
I guess with the speed of the tech cycle right now, If Microsoft profits off of something like this for even a couple of years, then it's worth it (well, duh... Hmmm... case of the painfully obvious this morning.) Bottom line though, I think at this point Microsoft is still coming in well above negatives like costs to litigate, negative regulatory environments, bad feelings, slashdot insults, etc. Microsoft is a business, bottom line, as soon as it gets more expensive to work this way... they'll change strategies. As long as this is working, which it obviously is, they'll stick with it even if God himself came down and said stop.
"...The mice will see you now..."
But it's like this:
You know your box is "sick/ill", it spreads virii!
I can see the "infected" pass by in my serverlogs(they don't hurt me, I got a good imune system).
lets take this a little further:
Note:some maybe pesonally insulted by this analogie!
If I had AIDS and I would go fucking around without a condom, what would you think of me?
Thats about how I think of people who know their box is "sick/ill" and still use it for their everyday tasks.
needless to say this applies to most people cause most people know M$ spreads virii.
( I do not mind if you use it off line, but whenever you connect make sure you are protected, virii create a lot of useless traffic, on top of that everybody needs to update their virii progs, which results in even more traffic.
guess who makes money out of all this!?!)
You are confused about what they have a monopoly IN. Multiple courts ruled that they were in fact a monopoly. You seem to be under the false impression it is for being a PC monopoly - far from it.
They have become a defacto OS monopoly - while there are other choices, they leverage their market share to ensure you can't, shouldn't, or won't want to use a competitors product.
Good companies encourage you to choose their product OVER the competitors, monopolies discourage competitors products through control, price gouging, and more.
GPL'd web-based tradewars themed space game
As soon as Linux is ready for the desktop, Microsoft is going to hell. Nobody is going to want to pay for software let alone software which is strictly limited in variety. If Microsoft was smart, they would stop trying to suck every penny out of every company, and start producing software which doesnt limit a users choice. And with DRM in Longhorn, there is going to be even more incentive to migrate to Linux.
If the dollar is an "I owe you nothing", then the Euro is a "Who owes you nothing." - Doug Casey
Microsoft isn't a monopoly, per say, they're just really successful.
Tell it to the judge, bub! Seriously, they may not meet ONE OF THE dictionary definitions of "monopoly", but they most definitely meet the LEGAL definition, which is what's important here.
And furthermore (and this is a point that proponents of both sides often seem to miss), there is nothing wrong with having a monopoly! What's illegal and wrong is abusing your monopoly position. Both Intel and Cisco have been found in court to have a monopoly in their respective markets. But both have been cleared of any charges of wrongdoing (rightfully so IMO).
If you are not putting together your own box (which I don't see many do in the case of laptops), whatever operating system you're installing on your pc, you have already paid for Windows. I think Ma Bell would also have been perfectly happy for you to use any telco, as long as you would pay Ma what was due to her regardless.
But it does confirm that Microsoft is exploiting its desktop dominance in workgroup server software; and that, by "tying" WMP to Windows, it has overtaken its chief rival in the media-player market, RealNetworks.
_Of course_ Microsoft will continue to use their position in the desktop world to compete against their competitors. They always have, and they always will. The fact ist the legal system moves at a much slower pace than technology. It's a simple formula:
1) Use monopoly to compete against competitors now.
2) Drag out law suits for as long as possible
3) Make token settlement like coupons which continue to expand Windows penetration
4) Profit & repeat.
Ruby on Rails Screencast
What's your point? Are you proposing that Microsoft should be subject to another set of rules than the other companies?
PS. It's "Mussolini".
The owls are not what they seem
I AGREE 100% There are places in this world that do not have international copy right laws.. Places that Linux and Windows XP sit on the same shelf in a software store and cost the same damn price.. Know what... No one touches the linux stuff. I don't know exactly why but seems to me it a clear example of consumer choice. After all, the cost is the same and the availabilty is the same. Windows is easier to use than linux, at least for the average user. BTW.. this place is right here in Tehran.. 4000 toman ($5 USD) for Windows XP and 4000 toman for RH Linux 9 at any software store in the city.. and there are many.
That rather is the point of anti-trust law.
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If history is any guide, it is not difficult to predict which of these two paths Microsoft will take. On the other hand, there are a few examples of companies that have begun as monopolies and actually ended up increasing the value of the company faster after being forced to give up their monopoly position. For example, after the breakup of AT&T in 1982, the companies formed as a result have grown much more quikly. According to this article at Businessweek
So... Microsoft splitting itself up would be good not only for consumers and competitors, but perhaps also for its stockholders.
But one that I have really come to like is vivisimo.com, check it out, and after performing a search ecspecially take a look at the "preview" feature
Parent has a point. While there are things I both like and dislike about Microsoft, I do get kinda sick and tired of seeing a story get posted on /. every time Bill Gates picks his nose in public, or something equally inane.
/.
Yes, we're all aware of Microsoft's business practices. Yes, we're all aware of the faults in their OS code. No, I don't want to hear about it every FREAKIN' five minutes. Also, if there is such interest in Microsoft, why don't we ever hear about the good things that they do (save your "because they don't do any good things" replies)?
Take ASP.NET, for example. I've worked with JSP/Servlets, PHP, and "old-school" ASP, and nothing is better or easier to work with than ASP.NET, IMHO. Before you bad-mouth it, why don't you actually try using it? Plus, if it sucked as bad as some people on this site claim, why would Ximian, et. al. be working so hard on Mono?
All I'm saying is that there should be credit where credit is due, and that it would be nice if every nitpick associated with Microsoft didn't rate a new topic on
I know, wishful thinking.
In Soviet Russia, Chuck Norris will still kick your ass.
Everyone has.
If it looks like a duck, quacks like a duck, and acts like a duck, then it's a duck. If it's able to exert monopolistic control of a market or markets, then it's a monopoly.
"Freedom means freedom for everybody" -- Dick Cheney
I am not going to debate the truth of this article.
However we hear the same thing over and over.
So I cannot begin to hold MS completely blameless.
What I cannot understand is at this point, with their huge advantage just in cash reserves, why they cannot just do the work and make the best products.
The potential they have to really do something awesome when put in contrast to their actual tactics it's just sad.
You know the whole issue of tying WMP to Windows being an issue is silly. Hello!, Windows Media Player has been included with Windows for free since Windows 3.1 days (yeah go ahead and check it if you don't believe it). So for many many years MS was including WMP with Windows and Real did not have a problem with it? Suddenly one fine day Real has issues with it? What has happened is that MS came up with a superior product ever since Windows Media 8 and started kicking Real's *ss. Who would want to use Real's intrusive annoying player when a better alternative was available?
With Windows Media 9 Microsoft really started shining in the Media Player arena and Real instead of competing wants to run crying to momma. Get a clue Real! If you hadn't abused your users with the intrusive crap of player you had then no one would have looked for alternatives. As long as WMP was inferior, Real was in fact the one abusing its dominant position by shoving a pathetically intrusive player on its users. Guess what they did when they had an alternative? Real squandered away its lead when real (pun intended) competition was coming its way. I guess it was sheer haughtiness on its part that it thought no one could beat it. When it has finally woken up and realised that no one is going to give it a second chance, then guess what happens. WMP9 is what decimated Real since its a much superior product overall compared to Real. Now the irony is that WMP9 is not bundled with any OS but is a separate download. Yet inspite of that its usage is skyrocketing.
The other story in all this is how Apple has been able to keep QuickTime alive and not face Real's fate. Well the QuickTime player also does some bad things (like adding itself to runonce reg key) but overall it respects its users a lot more. QuickTime and Windows Media are now the most dominant Media technologies on the net. So how come Apple is not complaining about Windows Media? How are they able to hold on to the market? Clue to Real: They actually compete. They care about their users and make a better player or better codecs (Apple has very good support for MPEG4). This whole media player tying issue looks like some kind of EU vendetta against a large US company. In fact the original case wasn't even about this till Real went crying to the EU comission. Makes me sick. What next? Tying of WordPad to Windows will become illegal since that hurts AbiWord? How silly can people get really.
In other words, if I were investor, I'd hold off buying Google stock when they IPO.
You should hold off buying google when they go IPO because everybody else will be buying... and the price will be way too high.
After a while, the stock will come back down to a fair market price... and that will be when you should buy.
This has happened before when Yahoo and other hot companies have gone public.
Davak
The thing that I think most Portal Pushers miss is the difference between having content and pointing to content. New users eventually learn where the content is - even if it's just from having hundreds of bookmarks - even if they're not internet or computer savvy. By repetition even my grandma can now get to google for searching and the new york times website by typing "nyt.com" into the title bar. This is the same woman who calls me every power outage to figure out what button to push to get the "tv-part" back on. To make it work they need more than just the search engines, they need to provide the content. AOL, MSN, and the like just don't provide enough good, unique content to be worth it. IMO.
To make an excellent indexing, searching, and categorizing group (read: Portal) and top-notch content providers (read: everybody else) would be extremely difficult, very expensive, and kludgy/unwieldy. Most of the best content is started by hobbyists and is community-supported -- I can't see a huge company (read: microsoft) able to compete quality or quantity-wise with the current and emerging nice sites.
I don't think the super-site is going to work.
Utilities are what's referred to as naturalized monopolies quickdraw
slashdot, news for crazed liberal socialist zealots
300$-500$ doesn't seem like big enough fine to me. How much hasn't Microsoft robbed us consumers in terms of overprices for their monopolist software? 300-500$? That's for a year... Common guys...give them a fine.
I don't think that MS will be able to buy its way out of their legal troubles with the EU like they did in the U.S. but you never know.
The problem with a 600 pound gorilla is that if it does not get what it wants it will beat the crap out of you until you are dead and take it anyway.
As far as their search engine is concerned, making it default will increase traffic to their site as so many windows users just go with what is already there for them. Of course we can trust MS to not filter content so bad words like Linux, Netscape, Opera, anti-trust and Mac will be available through their search engine.
There is another article in the same issue of The Economist (you need a subsctiprion to access) in which the magazine says
Begin Quote
[............]
Isn't this simply a matter of Microsoft competing vigorously? The strange thing is that its products invariably succeed in PC-based markets where the dominance of Windows provides an advantage: office productivity, web-browsing, media playback and servers. Yet in other markets that have nothing to do with PCs, such as mobile phones, set-top boxes and games consoles, the company is far less successful. Odd, that.
This newspaper has long argued, and still believes, that a break-up of Microsoft is the only remedy that would have any impact on its conduct, by removing its key weapon, Windows. At the moment that seems out of the question. How else might Microsoft be stopped from illegally exploiting its monopoly? By the long-awaited rise of open-source software such as Linux, maybe, though that seems unlikely. Perhaps the company will eventually conclude that the costs, in bad publicity and constant legal battles, of maintaining its monopoly exceed the benefits, and choose to divest or open up Windows itself. But that also seems implausible when there are large monopoly rents to be had. Some day a break-up of this too-mighty firm will again have to be considered.
[end of article]
End Quote
IMHO, governments adopting Linux is the ray of light through the clouds. If I target my applications to that market, then I need not fear MS. Sure, I will have to compete with all the rest of you. But we will compete as equals in a free market, not as weaklings against a bully.
Live long, and prosper!
1.they should be forced to reveal on a public website with no cost or licence restrictions their "propriatory" file formats. (exactly which formats would have to be decided by a sutable panel made up of legal people and technical people but should include all the office file formats like word, excel, powerpoint, access). Also, all their "secret" APIs (for example hooks into the shell) and all their "secret" network protocols (for example, the various windows-only authentication for MS IIS and MS proxy server
2.they should be forced to make all their contracts with OEMs public and be banned from having secret contracts with OEMs.
3.they should be forced to sell OEM windows at one price and one price only to ALL OEMs.
4.they should be prohibited from restricting OEMs who ship (or want to ship, talk about shipping etc) systems with operating systems other than windows, systems with no operating system installed at all or systems containing windows in conjunction with one or more other opreating systems.
5.same as for 4. but for application software (i.e. OEM pre-installs mozilla or netscape or whatever else)
Basicly, force them open on the OEM desktop plus force them to give up the secrets that will allow their competitors (including Open Source) to talk to, interact with and share data with those products (windows, office, IE, IIS, MS servers, media player, MSN messenger and etc) that microsoft currently enjoys a monopoly on or that microsoft is currently using is monopoly power to push.
1) All data storage formats and application communication protocols need to publicly available at no charge. In other words make make "Open Standards" the law.
Methods how to implement such data storage formats and application communication protocols could be perhaps patented, copyrighted or a trade secret. But NOT the data storage formats and application communication protocols.
This is the only effective solution to the artificial bearers Microsoft has put in place to protect its Monopoly. This is not a Microsoft problem per say. Microsoft is just the best example of this problem.
The Europe as the European Union is able to and should apply this law retroactively in to all Union Countries. This will give competitors to Microsoft sufficient market to be "economically" successful. The European Union can not force other or even suggest other countries outside the Union follow suit. And I strongly doubt that the US will be happy about this, because United States protected Microsoft because it is HUGE US company with even large political weight. However United States no longer controls the world. So I expect several Counties in Asia with large manufacturing and internal markets to adopt the European approach.