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Microsoft faces Monopoly Lawsuit (again)

james_in_denver writes "Forbes magazine is reporting that Microsoft will be sued in California for predatory pricing. This lawsuit appears to differ from earlier challenges to MicroSoft's marketplace dominance by entertaining the possibility of a Class-Action lawsuit. This would allow individual users/licensee's to participate in the lawsuit. A notable quote from the full text states: "It's anticompetitive, it's predatory, and it denies consumers, and in this case taxpayers, the benefits of innovation that a free marketplace should provide,""

11 of 281 comments (clear)

  1. Californian Justice... by LostCluster · · Score: 3, Interesting

    Some people like to say that the USA is the home of pure capitalism. However, that's an oversimplification of how our system really functions. I'd rather call it capitalism with gutters on either side of the bowling lane so that when something starts to go off course in a bad way, the law kicks in and makes sure that the bad shot both fails to score, and also cannot go further off course so that it impacts the scores on other lanes.

    Microsoft has been on the edge of falling into the gutter for quite awhile, and there's been a lot of people who so far have come close to pushing them in. This is yet another tale in a continuing series of stories about projects that have the potential to just do it this time.

    Microsoft has brought some amazing things into the world of computing, but they are far from perfect and in no way deserve to have all of the business power they have successfully amassed. We have to depend on our justice system to take some of that power back from Microsoft and return it into the available pool for everybody else to draw from in order to adjust the situation in a way that corrects for effects of misdeeds done in the past.

    I wish them luck... it's about the time market forces delivered us working and cool IT products again.

  2. This doesn't make sense by Anonymous Coward · · Score: 5, Interesting

    "Predatory pricing" is traditionally a term that refers to when a merchant tries to sell a product at a price that is vastly less than what the competitors are selling their product for.

    In this regard, if one wants to go after so-called predators (and I'm not one of them) then the government should go after Red Hat and Suse and Mandrake, as they sell far more product in a box and at a far less price than Microsoft.

    Once you go down the slope of the madness that is government interfence in the economy, all things are possible, mostly bad.

  3. Re:Microsoft by hype7 · · Score: 3, Interesting
    Is the market really free if the state of California tries to regulate it?


    True free markets exist in textbooks. Not in reality.

    Of all the states, I'm least surprised by Cal taking a (?another) shot at the Redmond giant. A number of Californian businesses (some of them quite big... most of them in Silicon Valley) have suffered at MS's hands.

    -- james
  4. Government's Place? by Famatra · · Score: 5, Interesting

    I dont recall anyone ever saying that government has no place in a free market economy. Without government there would be anarchy, and that seems to be bad for business ;).

    Government does many things including provide for enforcement of contracts (legal system), provide pure public goods, ontop of busting up monopolies.

  5. Re:Nerds have a hard time understanding caplitalis by Neduz · · Score: 5, Interesting

    Microsoft creates more jobs in one month than you linux fags will do in a life time. Thank god our legal system is rational, microsoft will probably just have to pay a fine.

    Why does the opposite of Microsoft have to be Free software? A fair market situation would be if e.g. at least 3 different OSes for PC were sold and would have an equal market share.
    The fact that only a free os can compete with Windows proves how ill the software market is. A monoculture is always bad. Even for jobs. If there were real competitors to Microsoft, there would be more people employed. Have you ever questioned how many people lost their job because Microsoft ruined/bought their company?

    --
    This is one lame signature, please read the message above instead.
  6. Once again we've got Capitalism -vs- Free Market by ahfoo · · Score: 5, Interesting

    This is a very interesting language issue because so many conservative interests like to use the terms interchangeably in defense of Capitalism while they're really quite distinct and even incompatible.
    In fact, free market ideas are dangerous to Capitalism. While the US is a good example of an economy that relies heavily on Capitalism, capitalist economies existed long before the US and are considered to have started in 15th Century Venice. Capitalism, as I'm referring to it, is a system where equity markets such as a stock, bond and commodities exchanges where inverstors use their capital to invest in shares play a central role in the economy. Clearly, such equities markets are very important to the US economy, so it is fair to say the US economy is heavily reliant on Capitalism.
    But examples of a free market include ideas like international outsourcing. While globalization is clearly a good thing from a free market perspective, it is not necessarily a good thing for shareholders of American corporations or even for those corporations themselves. Taken to its logical conclusion, outsourcing could quickly gut a capitalist economy. So, what's good for free markets in general is not necessarily good for any particular instances of Capitalism such as the Dow or the NASDAQ.
    Let's look at another example of a free market activity that hurts rather than helps Capitalist enterprises --second-hand sales. Again it is easy to see that second-hand sales are clearly free market activities, but if it becomes too popular, it begins to erode sales of new items. So, the general idea of free markets and the rather specific instances of Capitalism are often at odds rather than being interchangeable synonyms.

  7. Asain Windows Xp Starter Edition by bob_avernus · · Score: 3, Interesting

    http://asia.cnet.com/news/software/0,39037051,3918 9680,00.htm Microsoft creates a special cut down version of Xp for developing countries, then sells it for $36 USD making it the cheapest windows version available. While selling copies here with a few more features for $200 to $300 USD kind of ironic.

  8. Another angle by m00nun1t · · Score: 4, Interesting

    Sure, /. loves to hate MS. But isn't this at some level an inevitable problem? Network effects make dominance of a particular OS inevitable at some level.

  9. No, that's just timing by billstewart · · Score: 3, Interesting
    The US Federal government and many state governments have had anti-trust suits against Microsoft in the last few years - this is just a couple of cities trying to get more money now that the difficult legal work has been done. They're not doing this because of any principles about supporting open source, they're doing it because they think they can get some money. The only thing special about California in this process is that the state government has had a budget crisis in the last year or two, and one of the things they've done about it has been to reduce the amount of money they give city governments, so the cities are looking for any source of money they can steal right now.

    The Silicon Valley area in Northern California does have a lot of Open Source interest - it's a very dynamic technical culture, and lots of people moved here because of the computer and Internet boom of the late 1990s. (The Internet means that you can do your work from anywhere in the world, so everybody moved to the same city....) Many of the projects people wanted to develop needed some kind of Unix platform, and Linux and BSD and other open-source projects gave them that platform, and open source was a good model for developing many of the tools they needed to develop their real applications.

    One particular timing issue is that in the Internet business crash of the last 3-4 years, lots of computer people were unemployed, and they wanted to keep their technical skills strong, have fun, do something that got their name well-known, keep in touch with their friends, and maybe create a new business or new job, so writing open-source software was a popular thing to do. Also, for many people, they learned a lot of interesting technology during the boom, but were too busy with their jobs to have fun experimenting with it, but once they were unemployed, they had time to work on the projects they'd been thinking about.

    --

    Bill Stewart
    New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
  10. Re:Once again we've got Capitalism -vs- Free Marke by wfberg · · Score: 4, Interesting

    Some define capitalism as free markets period. Others as a system whereby capital means are primarily owned by non-state entities. And then there's Marx.
    Stock markets are just a by product, and don't actually contribute much to raising capital except for IPOs and additional offerings (in which a company sells its own stock, rather than day-to-day trades).
    Commodity markets aren't about capital at all, they trade commodities.

    Outsourcing in general should be good for the economy - wealth of nations, and all. However, that doesn't take into account the fact that there's no level playing field at the moment (e.g. agricultural subsidies, freedom of movement, etc.). Globalization is catching so much flack at the moment precisely because the "free trade" aspect is being implemented in such a way as to benefit multi-national corporations (and their shareholders), whilst giving the shaft to developing nations and out-sourced tech support people.

    Second hand sales don't hurt Capitalism at all! In fact, they promote the efficient allocation of capital means, which is surely a good thing. After all, that's what the "Invisible Hand" is supposed to do!

    You seem to have fallen for the the stock market myth of the need for ever-growing profits, an ever growing economy etc. There's really no need for all of that. Many small companies simply make a stable profit each year and don't feel the need to expand. In fact, a large chunk of the economy is chugging along happily, neither experiencing explosive growth or busts. That's because an ever-expanding economy is either unsustainable (both from an economic, as from an ecological perspective - yeah, I said ecological, very un-Capitalistic, but hey, oil will peak) or, more simply, a myth (i.e. you make more money, but you spend more too, and in the end you don't get any additional tangible thing in return.. That doesn't just include inflation, but cost-of-living/doing-business as well - lawyers will always have a rising income because there are always additional laws being made, rather than less - but they don't add value to your products.)

    I liked the "second hand sales hurt Capitalism" bit though. Very RIAA-esque. If we don't expand copyright to stamp out second hand and public domain sales, then the world will come to an end because anything that's free has no value. Indeed, freedom has no value! Only (monopoly-)"rights" do.

    --
    SCO employee? Check out the bounty
  11. EULAs are what really need to be challanged by SpamKu · · Score: 3, Interesting

    And it's not just Microsoft doing it.

    How about a class action lawsuit on those grounds? I've never heard of one on EULAs, and most need to be taken down a notch or two.

    When I buy software, it's MINE and I'll do what I please with it, including reselling it for a profit, if I want to.

    And yeah, copying and selling is clearly wrong - I'm not talking about that.

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