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Microsoft Softens Up On Competition

shaneFalco writes "The BBC is reporting that Microsoft, prompted in part by their recently legal woes in the European Union will allow vendors to set non-Microsoft applications as the default on Windows computers. This initiative is part of a dozen 'tenets to promote competition' that the company is adopting in the face of stiff criticism of business tactics in Europe. Other tents include not retaliating against businesses that promote non-MS software, and a relaxing of restrictions on licensing Windows-related patents." From the article: "The principles might mean that some manufacturers will promote search engines other than Microsoft's own, Mr Smith said - an apparent reference to Google, which has looked to be on a collision course with Microsoft over search engines. 'There are certain steps we can't take that would have been permitted a decade ago,' the executive added." We touched on this announcement yesterday, but details on the '12 tenets' were less clear at that point.

14 of 150 comments (clear)

  1. How nice by rolyatknarf · · Score: 4, Funny

    The article gave me a warm and fuzzy feeling for Microsoft. They really are nice people after all. They are even going through a twelve step program to make themselves better.

  2. Your Getting A Dell by dduardo · · Score: 4, Funny

    Now with 50% more junk preinstalled with every PC.

  3. We promise.. by vancondo · · Score: 4, Interesting

    One of the 12 tenants is 'Promising not to retaliate against computer makers that support non-Microsoft software.'

    Hmm.. does a slightly higher pricing structure count as 'retaliation', or is that just good business sense? I guess it's a matter of semantics.

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  4. Wtf? by Poromenos1 · · Score: 4, Insightful

    The hell? They will ALLOW them? Where does it say that Microsoft has a say in what is set up as default in the OS? Do they seriously think they can make people only use their searches/office/whatever?

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  5. Great. by Adambomb · · Score: 5, Insightful
    This is lovely on paper, but with regards to:

    Promising not to retaliate against computer makers that support non-Microsoft software.


    How precisely do they propose to differentiate between "retaliation against a computer maker" and "business decisions" due to any other little thing the maker may do that they decide they don't like? Would it be possible to argue that regardless of the actions of the maker, Microsoft could never stop selling to them or change pricing ever again without risking constant litigation? Seems like a disaster waiting to happen either way once a precedent is set(either against or for Microsoft).
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    1. Re:Great. by eln · · Score: 4, Insightful

      If Microsoft raises pricing for one particular vendor without similarly raising prices on all other vendors selling the same volume, chances are it's retaliation.

      Microsoft needs to stop playing games and just set different prices for different numbers of units sold and be done with it. The more complex they make their OEM pricing models, and the more factors they base pricing on, the more likely they are to be hit with lawsuits based on unfair pricing.

  6. Re:You can already do this! by eln · · Score: 5, Informative

    Sure, YOU can, but until now most OEMs were contractually obligated not to change the defaults to non-MS alternatives.

    Having OEMs ship with non-MS defaults is big, because the vast majority of users will pretty much stick with default settings in most cases.

  7. softening? by yagu · · Score: 4, Insightful

    I hail Microsoft's perceived "softening" as a positive step albeit driven largely by legal fiat. However, one need only read this article on Microsoft and their stance against Google to realize and recognize Microsoft retains its hubris and aggressive stance.

    Consider from the above article:

    Turner said the company is also gearing up to take on IBM and Oracle, among other competitors, with new products slated for debut in the next few months. But he saved his most acerbic comments for Google.

    "Those people are not going to be allowed to take food off of our plate, because that is what they are intending to do," he said.

    The hubris is Microsoft's assumption anyone getting business is taking food off of their plate, or something they consider rightfully theirs, as opposed to customers who make choices in a free marketplace. Fortunately the marketplace is tipped somewhat more towards a level playing field (not all the way, but better than before).

  8. Found 'em on eweek by Tx · · Score: 4, Informative

    1. The first principle goes to the installation of any software.

    "We will ensure that Microsoft will design Windows in ways that make it easy for people to add non-Microsoft features," Smith said.

    No. 2 is easy access: Computer manufacturers are free to add icons, shortcuts and the like to the Windows Start menu and other places used to access software programs so that customers can easily find them, Microsoft said.

    No. 3 is defaults. Microsoft will design Windows so as to let computer manufacturers and users set non-Microsoft programs to operate by default in certain categories, such as Web browsing and media playback, Microsoft said; computer manufacturers can set these defaults as they please when building new PCs.

    No. 4 is exclusive promotion of non-Microsoft programs, Smith said.

    "This is an important new issue in regard to things like media and Internet search, as we are broadening to adopt this for Internet search as well," he said, indicating that Microsoft's fierce competition with Google aside, the company is dedicated to this principle.

    Guru Jakob Nielsen offers advice on designing applications for usability. Click here to watch the video.

    No. 5 is business terms: Microsoft will not retaliate against any computer manufacturer that supports non-Microsoft software, Smith said.

    To provide transparency on this point, Microsoft will post a standard volume-based price list to a Web site that is accessible to computer manufacturers, as it has under the U.S. antitrust ruling, he said.

    Principle No. 6 deals with APIs. Microsoft provides the developer community with a broad range of innovative operating system services, via documented APIs (application programming interfaces), for use in developing state-of-the-art applications.

    And the U.S. antitrust ruling requires that Microsoft disclose all of the interfaces internal to Windows called by "middleware" within the operating system, Smith said.

    Principle No. 7 involves Internet services, where Microsoft is contributing to innovation in the area of Internet services with services that the company calls Windows Live, Smith said.

    "Microsoft will design Windows Live as a product that is separate from Windows. Customers will be free to choose Windows with or without Windows Live," the company said.

    No. 8 is Open Internet access, where Microsoft will design and license Windows so that it does not block access to any lawful Web site or impose any fee for reaching any non-Microsoft Web site or using any non-Microsoft Web service, Smith said.

    Principle No. 9 is "no exclusivity," Smith said.

    The U.S. antitrust ruling provides that Microsoft may not enter into contracts that require any third party to promote Windows or any "middleware" in Windows on an exclusive basis and Microsoft has pledged to continue this, Smith said.

    Next Page: Microsoft's pledges.

    Principles 10 through 12 deal with interoperability for users and say that Microsoft will make its communications protocols available for commercial release, the company will generally license patents on its operating system inventions, and the company is committed to supporting industry standards.

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  9. Re:You can already do this! by Anonymous Coward · · Score: 5, Informative

    OEMs have been able to change the defaults since the settlement of the US Antitrust case. Which is obvious if you've seen a Dell from the last few years.

  10. Official MS URL to the 12 Tenets by I'm+Don+Giovanni · · Score: 4, Informative

    "We touched on this yesterday, but the 12 tenets weren't clear at that point ... ", so we touch on it again tdday, but still fail to provide the official URL to the actual 12 tenets (a URL which was released yesterday, so the 12 tenets were indeed clear).

    Anyway, here's the official link:
    Windows Principles: Twelve Tenets to Promote Competition

    (Note that according to the text, the tenets are in keeping with and following the spirit of the MS/USDOJ settlement, rather than having to do with EU fines (though the latter likely played a role).)

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  11. Re:You can already do this! by kimvette · · Score: 5, Insightful

    It's more than that. It's (pick one or more of the following):

      ( ) Microsoft's meeting antitrust settlement requirements by not only providing mechanisms to change the defaults, but actually implementing the GUI to make it possible for non-geeks to do so
      ( ) Political spin/marketing bragging about how they're good guys when in reality they were forced to do this
      ( ) Unlike Google, known for making efforts to "do no evil" Microsoft is known primarily for doing evil and then not apologising afterward. Making their meeting DoJ requirements look like new value-added features is great marketing. "Hey we let you change small aspects of your desktop, new in Vista. Upgrade your PC today!"
      ( ) Microsoft's wanting to avoid further extensions of antitrust settlements
      ( ) Ballmer didn't feel like throwing any chairs yesterday (I kid, I kid)

    Previously if you wanted to change some of these settings it was digging through the registry (a frightning prospect for Mr. Old School businessman who can barely master Hotmail or for Joe Sixpack) or knowing about and downloading xteq's xsetup (or for some settings, TweakUI from Microsoft Powertoys)

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  12. Yes by donutello · · Score: 4, Informative
    From Twelve Tenets to Promote Competition:


    Microsoft will not retaliate against any computer manufacturer that supports non-Microsoft software. To provide transparency on this point, Microsoft will post a standard volume-based price list to a Web site that is accessible to computer manufacturers, as it has under the U.S. antitrust ruling. Windows royalties will be determined based on that price list, without regard to any decisions the computer manufacturer makes concerning the promotion of non-Microsoft software.
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  13. It's just a question of magnitude by mangu · · Score: 4, Insightful
    the EU is imposing these kind of arbitrary restrictions on what MS can and cannot do with Windows, but turn a completely blind eye to Apple's totally monopoly over all things Apple


    Huh, maybe their respective 95%/5% market shares have something to do with that decision?