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Japanese Government Raids Microsoft Offices

Nakito writes "According to an article at the financial news site Bloomberg, Microsoft's Tokyo office was raided by Japan's Fair Trade Commission, which is investigating whether the world's largest software maker violated the country's anti-monopoly law." Other readers note a AP/Yahoo story claiming: "A commission official, speaking on customary condition of anonymity, said Microsoft Japan is suspected of attaching improper restrictive conditions when signing software deals with Japanese personal computer manufacturers, such as requiring that Japanese companies allow infringement of their patents."

35 of 621 comments (clear)

  1. DO ITASHIMASHITE! by inertia187 · · Score: 5, Funny

    Should we expect eminent post of the Japanese version of Windows XP source code now?

    --
    A programmer is a machine for converting coffee into code.
  2. Microsoft breaking monopoly laws? by Teddy+Beartuzzi · · Score: 5, Funny

    Just shocking. Never saw that coming *at all*.

  3. Friday's Headline by bersl2 · · Score: 5, Funny

    "IT Department of Japanese Government Raided by BSA"

    1. Re:Friday's Headline by Hi_2k · · Score: 5, Interesting

      Then how come they routinely do? Every encounter I've seen or heard of with the BSA has seemed more X-Filesish than like an inquiry by a buisness orginzation. They come in, hold up some important looking papers, and say "Let us audit and then sue you or else we'll sue you, then audit you, then sue you again". I've heard of them taking liscence documents to audit them, then having never have seen them when asked to give them back in the court case. The BSA is Bad News. They're out to make money, the same way Tony Soprano is. At my name not to be disclosed School, yes, school, they required that computer clases be cancled for days at a time while the liscence investigation was going on.

      --
      When life gives you crap, Make Crapade.
      Sluggy Freelance.
    2. Re:Friday's Headline by AvantLegion · · Score: 5, Funny
      "IT Department of Japanese Government Raided by BSA"

      "Ha ha, stupid Americans, we're running Rinux!"

    3. Re:Friday's Headline by Bios_Hakr · · Score: 5, Interesting

      Except they normally show up accompanied by armed federal marshals.

      http://www.internetnews.com/bus-news/article.php /7 26821

      http://global.bsa.org/southafrica/press/newsrele as es/2001-05-25.617.phtml

      http://www.businessweek.com/smallbiz/news/column s/ 97-09/e3516034.htm

      http://archive.infoworld.com/articles/op/xml/01/ 01 /29/010129opfoster.xml

      --
      I'd rather you do it wrong, than for me to have to do it at all.
  4. Love them more.. by RancidLM · · Score: 5, Funny

    Wow i hope they make a Anime about the raid!...
    Officer: Stop!
    M$: no!
    Officer: So, Be it.. we must Kungfoo Figh!...
    Then out of no where .. Giant Robots!!

  5. Will They Learn? by 36526542DD · · Score: 5, Interesting

    When will the governments of the world learn that Microsoft WILL do absolutely anything it can to achieve and maintain market dominance.

    Microsoft's objective hasn't changed since day 1: control.

    Microsoft would much rather control a broken protocol than use or contribute to an open one.

    Microsoft would rather squash or buy out competitors instead of compete on a level playing field.

    The only 2 things that can change this behavior are Open Source and government restrictions, in that order. (Increased public awareness and understanding is considered part of Open Source.)

    Long live Open Source!

    1. Re:Will They Learn? by 36526542DD · · Score: 5, Insightful

      when the governments of the world learn that this is how capitalism works.

      I disagree.

      There are plenty of companies in the IT world that play fair, work together to form open protocols for the greater good, and don't stoop to what amounts to sabotage (think of how Microsoft has bastardized CSS to protect IE's market dominance) to increase their straglehold on the market.

      I'm all for capitalization, but Microsoft doesn't play by any of the rules, written or otherwise, unless they are forced to or it meets their objectives.

    2. Re:Will They Learn? by 36526542DD · · Score: 5, Insightful

      1) Don't kid yourself, Bill never spent any time starving in a basement doing development. Grandpa Gates and all his grandkids, Bill included, have always had plenty to go around. Bills education was handed to him on a silver platter, and his success (which he deserves, he is a shrewd business man with an eye for opportunity) owes it's existence to that fact.

      And if you review a little Micro-Soft history (hyphen intentional) you'll see that control has always been an underlying factor in their decisions and actions. Bill certainly never said it's about being open, even when the entire software industry was open.

      2) Red Hat, SUSE, and Intel to name a few. Intel? Yes, Intel supports many open standards and by and large I'd say they "play by the rules". Are the agressive at business? Absolutely. But does that mean they sabotage open standards (like Microsoft repeatedly does to CSS) to ensure their success? No, they don't.

      Make no mistake, the current IT environment (except for open source) is just how Microsoft wants it. They continually do things to keep consumers stupid (like hiding file extensions by default, still! All that does is ensure that everyone and their dog clicks on hot_sex.jpg.exe and gets the latest virus, but it keeps consumers stupid, just the way Microsoft likes it). They continually do things to break standards, knowing that 90% of websites will be designed to Microsofts munged versions of the standard and look great in IE, but somehow not render right in other browsers.

      There's plenty more, but it's getting late and you don't want to hear it anyway...

    3. Re:Will They Learn? by 36526542DD · · Score: 5, Insightful

      I don't think it is the same "Micro$oft Sux!" banter we hear so much from us Linux zealots. At least it was not intended in that spirit.

      I admire what Microsoft has accomplished technologically. XP really is a good operating system, especially considering how young 32 bit GUI operating systems are in the scheme of things.

      My point is not what Microsoft has accomplished, but how they've gone about it.

      Take for instance their efforts to keep IE on top of the mountain:

      1) With CSS they released their own buggy variant of the code, with carefully chosen deviations from the open standard, knowing full well that 90% of websites would be developed to their munged standard instead of the actual open CSS specification. The result they were after? When someone looks at a site in another browser, it mysteriously doesn't render right. "This browser sucks!", they say, as they go back to IE.

      Similar tactics were used with HTML, JavaScript, JAVA, XML, and a host of others. Microsoft knows exactly what they are doing in this arena, and it is dirty pool!

      2) Using their monopoly status to strongarm computer manufacturers to put IE and only IE on the desktop. Imagine if Microsoft no longer allowed Dell to ship Microsoft OS's on their computers. So, of course, Dell MUST comply, or wither and die on the vine. It took the feds stepping in to sort of stop this particular instance, but they same type of tactics are used against the computer manufacturers continually to meet Microsofts objectives.

      3) Claiming IE must be part of the OS and can't be removed. This is a load of crap tantamount to perjury. I have standalone versions of IE 6, 5.5, and 5 that all run independantly on my XP just fine.

      Over and over again Microsoft has shown they'll play dirty pool doing whatever they can get away with, very well orchestrated and thought out (as in the case of CSS), unless they are forced by more than an act of congress.

      Everyone loses except Microsoft. Yes, Microsoft deserves our appreciation for creating the digital world we have today, but a world of open standards is far preferred from here on out. And Microsoft won't take that future lying down. They'll just plain take the future by lying (and cheating, and stealing, and strongarming, and...).

    4. Re:Will They Learn? by 36526542DD · · Score: 5, Insightful

      1) I'm an owner of a web design firm, and let me tell you, Microsoft screwing with CSS, HTML etc is a MAJOR problem that affects more than just web designers.

      The only fair way to approach the problem is to compare the world with and without this tactic. We know what it is with this tactic (spend a few minutes surfing the net, or a few hours designing a site and trying to get it to look right in the different browsers).

      If Microsoft played nice with the other children, CSS would be a far more powerful standard, reducing filesizes and load times for all, the energy and time wasted screwing with Microsoft could be spent on more productive things, I wouldn't be wasting my time writing this comment, and new and exciting features could be created as part of the open standard.

      Instead we have to settle with what we have, a bunch of half broken, half implemented standards.

      And this is just CSS, the problem is just as bad with JavaScript & worse with XML. And no, 99.9% of the sites do not work correctly in Firefox (and it's not because Firefox isn't a good browser, because it's a great browser). I still need to open IE daily for sites with broken JavaScript or pages that only partially render.

      Open standards benefit everyone. Period.

      2) I read your entire linked post, and can see why the decision makes sense for OEM's. It's a no-brainer for them. But it is a clear case of Microsoft abusing their monopoly status to crush the little guys. Is Microsoft threatened by Linux? You bet. Do they want Dell shipping servers with Red Hat on them? No way.

      And the difference between market domination and a monopoly are that one can be abused, the other cannot.

      Ford does not have the leverage to go to the gas stations and demand they only sell Ford compatible gas. But that is exactly what Microsoft does, and gets away with in the computer industry. (Ford doesn't have the same type of market dominance as Microsoft. Few do. That is the point.)

      3) Bundling is just another abuse of monopoly power and it isn't good for consumers. Microsoft constantly and consistently tries to keep consumers dumb, and they succeed. 90% of the desktops out there don't show file extensions, this is bad for consumers (think virus's, in particular) and good for Microsoft (no one knows what a .doc file is, they just know it has a big blue W on it).

      I don't want to force open source on people anymore than I want Microsoft jammed down my throat. I should have the right to buy a Dell computer with nothing on it, if I so choose. That isn't (or at least hasn't been) the case.

      Here's to the future! May it be open.

  6. Why couldn't the FBI do this? by Epoch+of+Entropy · · Score: 5, Interesting

    As covered in a previous story here , why couldn't the FBI do that on MS's home turf?

    I'm willing to bet the anti-trust trial would have made more headway.

  7. Re:Oopsie! by irhtfp · · Score: 5, Interesting
    One of the benefits of the new trend towards global companies is that the set of rules one must play by becomes more and more restricted as you enter into new markets.

    You imply that just because one country has restrictive (or just different) laws and regulations, that a company must play by these same rules in all other markets. This is just simply not true.

    I'm sure MS has enough lawyers to sort out the regulations from one country to the next and is completely capable of playing by more than one set of rules!

    --
    I've made up my mind and now I've got to lie in it.
  8. Never saw them coming? by nodwick · · Score: 5, Funny
    That's funny, as I was reading the billionth story about Microsoft this week, I was just thinking exactly the same thing about the monopoly jokes ...

    What happened to the good old days when we had RIAA and SCO jokes to space out the Microsoft ones?

    1. Re:Never saw them coming? by rholliday · · Score: 5, Funny

      Hey kids! Choose your Monopoly joke from the following options: A. They should have played with the shoe. I never lose when I play with the shoe! B. How many time were they told, you only get one hotel! I don't care if it is Park Place! C. Hey! I see you! Stop trying to pretend you're on "Just Visiting!"

      --
      Xbox reviews.. We think they're funny.
    2. Re:Never saw them coming? by CreatureComfort · · Score: 5, Funny


      Actually, I'd rather see Hasbro come out with a version of the game where the squares are labeled Windows, Windows NT, Windows 95, Internet Explorer, etc...

      --
      "Unheard of means only it's undreamed of yet,
      Impossible means not yet done." ~~ Julia Ecklar
    3. Re:Never saw them coming? by jtosburn · · Score: 5, Funny

      Wow. So instead of Jail, you have MS Bob?

      This is a great theme, actually! Free Parking would then become.....you guessed it! LINUX!!!!

  9. Foregin powers by Tennguin · · Score: 5, Insightful

    It is absolutely ridiculous that our rights (to free trade in this instance) in the United States are treated so lightly by our government.
    At every opportunity it seems the president is reinforcing "his commitment to spreading freedom throughout the world" yet it takes a foreign power to ultimately prove how hollow that sentiment is.
    When compared against Europe and Japan, the United States commitment to protecting its citizenry from overbearing coorperate powers is shown lacking time and again. I for one an tired of the hypocrisy.
    Its shameful that I have to look to another country with hope that something will be done to curb the monopolistic amoral appetite of these coorperations.
    For now I can only say "go Japan!". I'm embarrased by the entire predicament.

  10. Re:Invasion! by chaboud · · Score: 5, Funny

    Yeah, shame they didn't think about doing this in December. God, that would have been great.

    A couple of years ago, the Bank of Japan's Washington, DC office scheduled their annual holiday party on December 7th and sent out invitations before realizing that they had invited economists from every nation to a bash on Pearl Harbor Day.

    Needless to say, Greenspan did not attend.

  11. Sweet Buttery Jesus! by 0x0d0a · · Score: 5, Funny

    The United States couldn't finish the Microsoft case during the Clinton administration, but it may be the Japanese that cause Microsoft to adopt tactics conducive to competition.

    They gave us anime, lots of neat consumer electronics, and Microsoft a slap upside the head. Japan gets two thumbs up from me.

  12. Re:Japanese Anti-Monopoly Laws by chazwurth · · Score: 5, Interesting

    Perhaps the problem is with large overreaching foreign companies?

    --
    The plural of 'anecdote' is not 'data'. --Dan Kaminsky
  13. Am I the only one who think... by ruyon · · Score: 5, Insightful

    It might not have happened if MS were Japanese company?

    1. Re:Am I the only one who think... by Mr.+Flibble · · Score: 5, Insightful

      And I the only one who thinks that the anti trust case that basically fell apart in the U.S. against MS, fell apart because MS is an American company?

      --
      Try to hack my 31337 firewall!
  14. This is awesome by alan_dershowitz · · Score: 5, Funny

    I hope they show a Japanese official on C-Span trying to pronounce "Ballmer"

  15. Re:Oopsie! by irhtfp · · Score: 5, Insightful
    You're still missing my point. Maybe a bit too subtle for you?

    You said:

    ...that the set of rules one must play by becomes more and more restricted as you enter into new markets...

    and that was what I was challenging. Just because MS is (potentially) found to be a monopoly in Japan does not mean that they will be found to be a monopoly in some other country or that they will change their behavior when penetrating new markets based on any such ruling.

    --
    I've made up my mind and now I've got to lie in it.
  16. Re:NEWSFLASH: COMPANY WANTS TO MAKE MONEY!!! by 36526542DD · · Score: 5, Informative

    Actually I'm the president of a company that has used open source profitably for over 5 years, and it does pay the bills. Very nicely in fact.

    Thanks goes to the developers of Linux, Apache, MySQL (and other databases), PHP, and others.

    And yes, I want my company to make money, which it does. But there are more important things than that, and there are plenty of profitable companies (open source or otherwise) to prove that money can be made hand over fist without resorting to Microsofts tactics.

  17. Re:other side of the world by Rasta+Prefect · · Score: 5, Insightful
    Maybe the Japanese can get away with this awful corporate indignity because they didn't "elect" Bush to head their country. If we say our prayers and vote with our brains in November, we might begin to approach the level of corporate accountability of Japan, Inc, and Junior will be free to follow his outsourced job to friendlier shores.

    Are you kidding me? They're getting away with it because it's a foriegn company. Japanese corporations get away with things we'd never dream of in this country. They have no trouble with overreaching corporations as long as they're there own. Japanese trade policy has always seen Japanese Companies and government working hand in hand to pry open foreign markets by every means nessecary, and the nature of the complaints has Japanese coporate complaint all over them.

    --
    Why?
  18. 1 Way by Flamesplash · · Score: 5, Funny

    While I've worked for MS before and may again I always find their street address rather funny/ironic.

    One Microsoft Way

    Redmond, WA

    --
    "Not knowing when the dawn will come, I open every door." - Emily Dickinson
  19. Re:Oopsie! by kamapuaa · · Score: 5, Interesting
    As this action by Japan illustrates, apparently not. Microsoft just ran with their typical US arrogance and got caught breaking the rules.

    As a former resident of Japan, I think this whole issue is being framed the wrong way. Monopolies are part & parcel of Japanese business practices. It's more likely, they didn't pay off the right officials, plus they happen to be a foreign company.

    --
    Slashdot: providing anti-social weirdos a soapbox, since 1997.
  20. from the nikkei shinbun by bandersnatch · · Score: 5, Informative

    Summerizing this Japanese article, the issue is that the OEM contracts contain a clause disallowing the filing of complaints about against Microsoft software. The main part that seems to have rankled is that Microsoft is believed to have improperly included software developed by Japanese manufactures(Fujitsu, NEC, etc). By being forced to agree to the clause in the contract however, they are unable to file a complaint against Microsoft.
    This is where the monopoly bit comes in. Because Microsoft has an OS monopoly the makers have no other choice than to include the OS on their machines, which in order to do so forces them into sign the contract. All of which rubs up against various Japansese antitrust and trade laws.

  21. Reminds me of a film... (OT) by boobox · · Score: 5, Funny

    Remember The Madness of King George a few years back? The original title was The Madness of King George III but they thought that American audiences would want to know where parts I and II were playing at...

    (ducks)

    See it here.

  22. BATSU BOX by Neo-Rio-101 · · Score: 5, Interesting

    Let's not forget that Microsoft made a huge blunder with the Xbox in Japan.

    Did they get the hardware wrong? .... NOPE
    Did they get the marketing wrong?.... NOPE
    Did they get the games wrong? ....... NOPE
    Did they get the price wrong? ....... NOPE

    So what did they get wrong?

    The freakin NAME of the machine.
    The letter X in Japan is synonymous with BAD, like an incorrect answer or a cross on a mistake....
    and hence the X-box earned it's name as the BATSU-BOX (or the No-Way-BOX) ....that and the Xbox green colour looks like radiation.
    And THAT was just asking for trouble coming from an American company.

    Funny, for a company with loads of cash... Microsoft couldn't even get the cultural sensitivity thing right.

    --
    READY.
    PRINT ""+-0
  23. Re:Not missed at all. by mcrbids · · Score: 5, Interesting

    However my point is that as a company you have to pay attention to more and more rules. If you don't then you end up in a situation like the present one Microsoft finds themselves in.

    Except that a company is not an individual. MS Japan is more than likely a separate corporate entity from (and with strong contractual ties to) MS Redmond.

    MS India, same thing. It's a different legal entity, with its own charter, etc. with the only stipulation being heavy contractual obligations to the parent company.

    If 50 people in Japan can come up with a clear legal strategy in Japan, why couldn't 50 people in Japan come up with a clear legal strategy in Japan with strong contractual ties to Redmond?

    This will have zero effect on MS Redmond, but does smear the name of MS even more.

    Microsoft is in 200x what IBM was in 197x. In 30 years, maybe MS will be the good guy again, too!

    --
    I have no problem with your religion until you decide it's reason to deprive others of the truth.
  24. Re:Hypocripsy by arivanov · · Score: 5, Insightful
    Anybody here ever try to enforce a patent in Japan

    No. But I have helped prepare the paperwork for a successful patent filing in Japan. The difference between the US and Japan is that you cannot patent bollocks. In this particular case 8 patents for the US ended up being 4 patents in EU and only 1 in Japan.

    First: their patent office has not yet degenerated into an approval stamp machine so the patents have to have merit.

    Second: they charge an arm and a leg for a patent filing so even large corporations avoid defencive patenting and stuff that has no commercial value is not patented at all.

    I usually get flamed by the idealists which still believe in the "small inventor", but I will say it again. This is the way a patent system is supposed to work. A patent is a government guarantee to the inventor that he/she will be capable to exploit the commercial merits of his/her invention. Note the words commercial. So with all due respect I do not see any merits in trying to patent an invention of no commercial merit.

    The side effect of this is that the US method of IPR development is reversed. For Japan you first find financial backers for the idea and then patent it.

    --
    Baker's Law: Misery no longer loves company. Nowadays it insists on it
    http://www.sigsegv.cx/