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EU Releases Microsoft Antitrust Report

Hassman writes "Ever wondered the reasoning behind the EU fining Microsoft and ordering them to sell a Media Player free version of Windows? Well now you can stop wondering. If you aren't up for the full read (it is 302 pages), check out the Reuters summary. Want more? Check out a quote from the summary: 'There is a huge switching cost to using a different operating system [as in not Windows],' he [a MS exec] wrote Gates. 'It is this switching cost that has given customers the patience to stick with Windows through all our mistakes, our buggy drivers, our high TCO, our lack of a sexy version at times...' Mmm...sexy indeed." Reader BrerBear writes "News.com is reporting that the European Union has released its report on Microsoft's conduct, to which Microsoft has pre-emptively responded. Inside are more classic examples of what one should never write in an internal memo: 'In short, without this exclusive franchise called the Windows API, we would have been dead a long time ago,' from Microsoft Sr. VP Bob Muglia."

16 of 612 comments (clear)

  1. Re:Common Sense ... by smallfries · · Score: 5, Insightful

    Ok, so you read the microsoft response but did you fail to read the actual reuters summary? The commision found that barrier-to-entry for the operating system market were so high because people don't want to have to change to an incompatible product, and that this places *special* obligations on microsoft an a monopolist in such a market.

    A better analogy would be that there was a dominant shoe maker that refused to make the shoelace holes in a way that would allow other shoelace makers to create a product that worked with their shoes.

    But yes, nice "flaimbait" quote.

    --
    Slashdot: where don knuth is an idiot because he cant grasp the awesome power of php
  2. Re:As a web streaming provider by lavalyn · · Score: 5, Insightful

    It's the #1 player why?

    Probably because there hasn't been any alternatives, since Microsoft has been stifling them. User indifference matters here; re Netscape vs. Microsoft.

    Try using the free Media Player Classic.

    --
    Doing the Right Thing should not be preempted by making a buck.
  3. Re:To the Owners/Managers of Any Company by NineNine · · Score: 5, Insightful

    Sure, there's no switching cost as long as you get your ass over here and show my company how to use this damn Linux thing, and you find, install, and train us on business apps that are as good as the ones we have now. And of course, you should be able to train all of us instantly after you do our conversion, since any time spent learnign a new system IS A SWITCHING COST.

  4. Re:As a web streaming provider by xmath · · Score: 5, Insightful
    It's nice to rely on the fact that most people have this installed.

    Which is exactly one of the reasons the competitors get no chance and why the EU has made this decision.

    BTW, QuickTime works just fine on Windows afaik and I see it used quite a lot by people other than Apple (though often alongside other formats, rather than as the only format)

  5. Run for your life! by lovebyte · · Score: 5, Interesting

    President Ed Black wrote letters to Secretary of State Colin Powell and U.S. Trade Representative Robert Zoellick, telling them he knew they had been asked to "take extraordinary actions" because of the European decision.

    Black urged them not to intervene. He said Microsoft was pressuring the U.S. government to pressure the European Union to ease off Microsoft.


    Am I the only European here scared by this snipet from the Reuters article? Are we going to be bombed? Colin Powell is involved, next will it be Rumsfeld? What kind of excuse will he find this time?

    --

    I'll do it for cheesy poofs.

    1. Re:Run for your life! by sir_cello · · Score: 5, Interesting


      There have been a number of high profile spats over competition law recently, notably the GE v Honeywell merger - accepted in the US, and then rejected by EU competition authorities (but later allowed after GE gave specific undertakings to divest certain business units and so on). Not to mention the banana wars :-).

      In general though, the US has been getting a little techy about the growing independence of the supra-EU state. The next biggest issue is the EU's design to create its own defence forces, the US sees this as a worry because it weakens the need for NATO and creates two large divisive superpowers (witness the continentals vs. US wrt. iraq).

      There are other good examples (Airbus vs. Boeing a good one for indication of how EU has succeeded in generating huge manufactures; EU space programs another one).

  6. Re:Common Sense ... by Anonymous Coward · · Score: 5, Funny

    From the article:

    Microsoft contends it should not have to do so, saying: "When is it unlawful for a dominant firm to incorporate new components or features that demonstrably improve its finished product?"

    I'll take "Illegal monopolies" for $590 million, Alex.

    - Tony

  7. Re:Common Sense ... by molnarcs · · Score: 5, Insightful
    You should be modded down for two reasons:
    • because you blatantly ignore the fact that different rules apply for companies in a monopoly position (they have special obligations) - thus forcing ./ readers to explain again and again and again the obvious - very tiresome.
    • IMHO, "Go ahead, mod me down for common sense...." type of disclaimers to avoid bad moderation are very cheap
    • bonus reason: Nice cut&paste job to have a comment at the top as fast as possible, with no substantial (except for your wish to be modded down) content.
  8. Re:As a web streaming provider by ztirffritz · · Score: 5, Interesting

    I think that if M$ had decided upon an open source standard media format, this would have been a mute point, but since they created a proprietary format (for better or for worse), their monopoly of the OS Market puts them in a uniquely vulnerable position. By essentially forcing all Windows users to use WMP whether they want to or not, they have carefully, if not cleverly, created a situation where a monopolistic practice can almost be explained away. I think that we can all agree that Real is destined for the garbage heap. Back before WMP, Real survived because of their accidental monopoly. It is a sad day when even Microsoft can make a product better than yours. Quicktime may become a contender faster than everyone thinks. Apple gives away their Quicktime Streaming Server software for FREE, with unlimited user licenses. They do bundle Quicktime with the Mac OS, but only because the only other medial player available for a long time was Real. I now have Windows Media Player, Quicktime, and Real running on my Mac. The only one that I want to get rid of is Real. WMP for Mac is a very simple interpretation. It only plays the Windows Media format files, but it does it well enough and finally is integrated with the Web browser so that I don't have to download all of the links anymore.

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    Why doesn't anything interesting happen when I have mod points?
  9. Re:As a web streaming provider by Hammer · · Score: 5, Insightful
    And as a consumer it is nice to find sites that require software that I cannot install since I use Linux.
    My options are
    1. get a Windoze-box
    2. go to the next site

    At a cost of CAD $399 (not including the box) my choice will be #2

  10. How to write a memo by mwood · · Score: 5, Insightful

    "Inside are more classic examples of what one should never write in an internal memo...."

    I disagree. It is sometimes one's duty to point out that one's employer has weaknesses. These are exactly the sort of things one *should* write in internal memos to people who can and should do things about them. *Good* leadership wants to hear about the company's weak spots so that they may be addressed.

    Yes, sometimes bearing bad news gets you fired. In the short run that's really bad, but in the long run I'd rather not be working for weaklings and cowards anyway.

  11. Re:Common Sense ... by BlackHawk-666 · · Score: 5, Insightful
    Anti-trust laws were invented not to prevent companies from attaining 90% control of the market but from abusing that position. An example might be an OS company that singles out one market at a time and uses their dominant position to force the other players out of the market e.g. networking, office software, audio playback, video playback, file system compression, system utilities.

    They do this by making a loss in this market until such a time as their competition is forced out of the market, then it's time to start making money. They can do this by using their other sections to provide revenue whilst losing money in the other markets...think XBox for a current example.

    Microsoft seems to fit this definition to me.

    --
    All those moments will be lost in time, like tears in rain.
  12. bad analogy by Anonymous Coward · · Score: 5, Insightful

    This is a common tactic that is used to confuse people into thinking that Microsoft is just trying to do normal business and not using monopolistic tactics to keep people from switching OS's. Almost everything Microsoft does is designed around keeping people from switching. That includes, extending standards, proprietary file formats, licensing agreements ect. You can never stop Microsoft until you break their tactics. Of course, they camouflage their real tactics with simple analogies that they expect everyone to believe.

  13. Re:Common Sense ... by RetroGeek · · Score: 5, Informative

    OS/2 Warp, which was incredibly developer unfriendly

    The GUI API for OS/2 was almost the same as the one for Windows. IBM and Microsoft started developing OS/2 together. In fact, the very early GUI for OS/2 (1.0?) was almost visually and functionally identical to the one that Microsoft used with Windows 1, 2, and 3. The API was so close that IBM had a conversion system (called Mirror??) where the vendor had top make a few changes, then could re-compile for OS/2. Of course the extra CPU time required for the conversion was a huge performance hit (think 386/33, 8M RAM), so it really never became mainstream.

    What was developer unfriendly was the pricing of the NDK. Microsoft practically gave its NDK away, whereas IBM sold theres for big bucks (over $500 as I remember).

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    - - - - - - - - - - -
    I am a programmer. I am paid to produce syntax not grammar. Deal with it.
  14. A worth reading by Oscaro · · Score: 5, Informative
    Contains some sweet snippets like this:

    Microsoft states that more than 100 million copies of WMP 9 were downloaded in the ten months the software was available to the general public and specifies that these copies were downloaded by people who already had a version of Windows Media Player installed on their PCs. Microsoft concludes that these statistics rebuts the notion that consumers are unwilling to download a media player from the Internet if they already have one on their PC. But Microsoft states that the media player these users already [have] on their PC was WMP. This is important to note because Microsoft has implemented a mechanism in WMP by which WMP regularly looks for WMP upgrades on Microsoft's Web site (it 'phones home'), and in case it finds such an upgrade, prompts the user to download it. The users Microsoft refers to are thus likely to have been prompted to download WMP 9 (and repeatedly so if they chose not to do so at the first prompt).


    Downloading a WMP upgrade in a situation where Microsoft recommends to do so via a recurring screen prompt is different from a situation where third party media player vendors whose players are not automatically present on each newly bought Windows PC have no possibility to prompt users to download their media player onto the PC for the first time. Only once the initial obstacle of the first download has been overcome will they also be able to rely on mechanisms which allow them to use screen prompts to offer the user downloads of upgrades.

  15. Re:Serious question... by krray · · Score: 5, Insightful

    Let's see -- it seems that with every release of Windows the printing specifications have changed. Enough to break quirky old app's that *WILL* remain running until I deem necessary. I'm also getting sick of digging in different places for system settings. In Windows 98 they were here, then in 2K over there, and now with XP someplace else.

    Have you USED their operating systems? Now, have you *USED* Linux and OS X extensively. I have placed each platform in front of myself and used it solely at home for months on end with each. The Windows box almost got thrown out the Window, but stopped myself short (good hardware) and reformatted Linux and used that. Then I put a Mac in front of myself and continue to use that to this day (Linux is still plugging away in the basement, thank you).

    Have you ever used & maintained a Windows Server? How about BSD? Linux? QNX? Netware? Well, again, I have. It also happens to be my job. There's little wonder why there are -0- Windows servers in the data-centers ... and you know, most of the Netware servers are notorious for running *YEARS* without a reboot or any issues. My record is just under a decade before I _really_ had to replace the last Netware 3.12 server (every fan in the system was dead after we finally found where it was hidden :).

    And people don't wonder why I've been mythodically replacing the Windows boxes in the offices with Linux and Mac's. Particularly after they're up and running on their new system.

    As for Microsoft business practices... Yeah, I still want my many THOUSANDS of dollars back for Windows licensing that I _had_ to purchase if I wanted decent hardware through normal OEM channels from many years ago. Funny, but those servers are still running Linux to this day...

    I don't care that they dominate the market. Their operating system, well, does suck pretty bad. They've never been leaders, but wanna-be followers who have stolen and cheated their way to the top.

    I love Apple's offerings today -- if you've worked with their stuff you'd understand. I wouldn't be without my iPod, and until you sit in front of a iSight you just won't understand. I also have little doubt that if Apple had risen to the top they'd pull the exact same tricks IBM did, Microsoft is, and the next big company probably will. In the mean time ... buh-bye Microsoft. Too much money (WAY TOO MUCH) much too fast...