EU Gives Microsoft 8 Days Until Fines
kaysan writes "European Commissioner Neelie Kroes has presented Microsoft with an ultimatum: Before Thursday next week, Microsoft must hand over all secret information on Windows protocols to its competition. Should the company choose to ignore this demand, it will be severely fined. Microsoft's history with EU fines so far amounts to approximately Euro777.5 million. Both linked websites are Dutch, but then again, so is EU commissioner Neelie Kroes."
While I know that what I say might come off as a troll or a Microsoft-fanboy (I am neither), I really don't understand the State in this situation at all.
First of all, the State creates laws which give some companies preferential treatment over ideas or the way a person can use their hands and mind to create something. We call these useless laws "copyright," "patent" or "trademark." The State is the only way to enforce these laws which govern how you think and use your body, it is impossible to cover these restrictions without force or the threat of force.
So companies go out of their way to try to protect their easily-distributed-and-duplicated resources. In a free market, if a widget was hard to make and reproduce, but everyone wanted one, it would be very expensive. If someone else discovered a way to mass produce widgets to outstrip demand, the price would plummet down to near $0. This is why software and music and content has a very small value compared to future work -- once the product is produced, it falls to worthless except for the law.
These companies that create content also know that even with the law, it makes sense to try to keep competitors from discovering how their products work. If I invent a new engine, I'd want to obfuscate the operation enought to keep my competitors from duplicating it, at least until I've made it more efficient. This is how manufacturing works -- you want to be the most efficient, but you also want to fight off competition who wants to be more efficient than you. This is why the market is great -- people work hard to make more efficient products.
Now, we have various competitors that are locked out of a market because the State decided to give preferential treatment to certain companies (in this case, Microsoft). Copyright, patents, trademarks can all be used to keep other people out of a given market long enough for a company to grow to a size that makes it hard to defeat. This is not what happens in a relatively free market (I'll say most deregulated). If Microsoft didn't have the backing of idiotic laws like the DCMA (in the US), overextended copyright, overencompassing patents, and overbearing trademark laws, other companies would have had access to compete many, many years ago. Microsoft itself was able to get into the information market from the start by developing products and acquiring products before the laws became unbearable in terms of the barrier to entry.
Microsoft is not a monopoly, it is just able to use the preferential treatment of the law better than their competitors. If you voted for the State, you are part of the reason that Microsoft has grown. Sure, some will say that they violated anti-trust laws, but those laws have enough loopholes to let any big company get around them.
Let's look at reality here. The State wants these fines to pad their own accounts -- they same laws will exist, and the same problem will repeat itself. This is basically a legal form of asking for bribes, and Microsoft will be happy to comply. Any changes Microsoft makes will only be enough to make the State happy, and the next run against them will be strictly for income for those making new laws. That income helps provide for more loopholes and better preferential treatment for the companies that can afford it. Microsoft is being forced to hand over "secrets" but those are past secrets -- not future ones, right? They'll just make new secrets, or obfuscate the old ones in new ways so that anything they share isn't useful in the long run (everything changes every 18months right?).
The problem isn't in the bribe money, the problem is that you all are voting for the State to be more and more powerful, which means that it can do more and more damage to your freedoms.
http://technology.guardian.co.uk/news/story/0,,194 8086,00.html
-Eric
SJW: Someone who has run out of real oppression, and has to fake it.
Slashdot continues its editorial nosedive towards irrelevance as they now ignore their own FAQ!. I wasn't aware that there is a significant portion of the American Slashdot reading public that could understand Dutch. Interesting.
A simple Google News search turns up a whole lot of items on this story in English.
I hear there's rumors on the Slashdots
Face it -- the fines aren't even petty cash. MS expects the Court of First Instance to rule in a few months, and it would be stupid to turn over information that can't be recalled before then.
At absolute worst, the fines are worth less than the ability to hold off competition for the same period; it's just part of the cost of doing business.
Lacking <sarcasm> tags,
" so is EU commissioner Neelie Kroes."
But what about his cousin Mie Kroes Offt?
Where were you when the voynix came?
Think about it - if Microsoft doesn't market Windows et. al. in the EU, the EU has no standing to impose fines on Microsoft. European customers will be obliged to purchase Microsoft products in the USA and to find a way to get their shiny new copies of Vista home (as I've never heard of a way to force a company to do business in a given geographic region). The EU will be forced be economic pressure to either 1) cave in to Microsoft, or 2) subsidize the vast number of businesses in Europe which will have to endure the nightmare of migrating their enterprises off of Windows onto some other solution. Even if the EU were more economically powerful than it is, I doubt that it could afford option #2, especially once the US government catches wind of things and slaps an export tax on it (which you know they would).
Of course, they could start running their businesses using OLPC laptops! That'd show those bullies at Redmond who's boss!
Time for Microsoft to apply for patents on anything and everything described by these protocols...Otherwise, they're up a creek.
tasks(723) drafts(105) languages(484) examples(29106)
The last time the EU demanded that Microsoft produce usable documentation (as in, sufficient specs to program at least a working prototype implementation of the relevant network protocols), they kept insisting that the EU had demanded that they hand over all their source code. And of course large chunks of the press believed them.
I wonder what story they'll try to feed us this time around.
-- That grumpy BSD guy - http://bsdly.blogspot.com/
They will ignore the demands and accept the fine.
Then they will say they will pay with vouchers for MS software.
Same shit, different day..
I'm rooting for the EU to crack the back of this beast. It's high time that multi-national corporations learn that they are not above the law. Arthur Andersen doesn't seem to have been enough of an example, because corporate officers and billionaires in this world still play like they think they're masters of the universe.
Do what you can, with what you have, where you are.
For the umpteenth time. Microsoft was tried and convicted in Europe for Anti-Trust violations, just like they were in the states. Part of the remedy was to document the protocols to allow comptetitors software to interoperate with Windows servers.
Microsoft refused to comply with the remedy as decided by the court. The court then decided to fine Microsoft. Microsoft refused to comply with the remedy and refused to pay the fines. That's where we are at the moment.
So the EU isn't against Microsoft because it's American, it's against corporations that break the law, get convicted then ignore the punishment that has been decided by the court.
Now do you see?
What power does the EU ultimately have to enforce the fines at this point if MS simply doesnt pay the fines: Are they prepared to ban the importation of MS products and quit the MS Windows habit cold turkey? I can't see many businesses appreciating being deprived of a standard business environment/tool such as Windows or Office. I'm fairly ignorant of EU politics but is there enough strength in the political system to push an embargo though and make it stick?
Can someone give me some examples of microsoft propriatory data formats, network protocols or APIs that:
A.Would be covered under what the EU is asking MS to release
and B.Would actually be benificial to competitors of Microsoft (including open source)
So they didn't exactly bash down the consumers' doors and force them to buy their software. They forced the PC OEMs to force it on them.
And you are correct with some of the xenophobia. Basically, the EU nations do not want to be purely beholden for this type of thing to a US-based company.
OCO is Loco
I don't know about that. Walmart doesn't pretend that it's a nice place to work. Walmart doesn't pretend to be anything more than a minimum wage shop. Walmart is a discount house, and really doesn't try to be anything different.
MSFT pretends to be open and standards following, and caring company, who you then partner with(playsforsure) and then stabs you in the back(Zune).
A simple fact, Outside of MSFT's monopoly their products are at best average and rarely long term profitable. Walmart while Evil, doesn't have all their eggs in one basket, and isn't a convicted monopolist.
i thought once I was found, but it was only a dream.
Does anyone else see this as an incredible boost to projects like Wine and ReactOS? Given that up until now they've had to use Chinese Walls and so forth to figure these things out, it seems to me that this court order is going to save them a *lot* of effort.
(rot13) rpbzbab@tznvy.pbz
next week, Microsoft must hand over all secret information on Windows protocols to its competition.
But, but, your honour - we don't HAVE any competition...!
Seven puppies were harmed during the making of this post.
quick translation:
0 .html
New Ultimatum for Microsoft bu the EU
LONDON - The Eurpean Union has issues a new ultimatum against the American software giant Microsoft: before next Thursday the company has to turn over all (bdb: information about the) secret protocols in its Windows-OS to its competitors.
If Microsoft does not comply with the demands, the company risks more fines, threatened EC Neelie Kroes in Wednesday's edition of the British newspaper the Guardian. "I do not live forever" Kroes said about the tightened pressure.
Accoriding to her Microsoft has not given all relevant information yet. She compared it to a puzzle from which certain pieces are missing.
In March 2004 the European Commission already fined Microsoft by an amount of 497 million euros in alledged abuse of market power. In July an additional fine was set which can go up to 280,5 million euros.
original story in the guardian: http://business.guardian.co.uk/story/0,,1947759,0
- In Memoriam: Jeroen de Bruin (1972-2004), bye bro
I'm sure the various Microsoft subsiduaries in the EU member states have some nice assets like bank accounts and property that could be seized.
Predictably, many (US) Slashdotters trot out typical US hypocrisy and double standards. Spamhaus, a UK company, gets no sympathy in the US because "they should abide by the laws of the US when doing business in the US / jurisdiction of the US courts". OK, fair enough. But now a US company doing business in the EU is asked to abide by the laws of the EU - "no fair!" they cry.
We see this time and again, whether it's steel imports, GM crops or democracy. "We can impose tariffs, but you can't". It's the US way, or else.
I would have hoped that us nerds would be a bit more clued up on the world, and aware of being played like political pawns. Is it really too hard to pull your head out the sand and see the double standards that the US applies? This site is "news for nerds", but that often seems secondary to "knee jerk reactions by American patriots".
While I am like most of Slashdot in that I think that Microsoft has a very tight grip on the computer market, I still will never understand why the EU is so against Microsoft. Is it because it is produced in a foreign market? I know many European countries have unhealthy feelings of xenophobia...
While I, like most people on Slashdot understand that Lee Boyd Malvo is a good shot, I still will never understand why Virginia is so against him. Is it because he is black and Virginians hate blacks? I know a lot of Virginians are Clansmen...
Microsoft broke the law. The EU has enforced this same law against numerous companies that are both European and based in other countries. What's so hard to understand?
Remember: they bought the software...
Do you even know what this case is about? The whole point is that because everyone pretty much has to use Windows on the desktop to get software they need to do business means it is illegal for MS to force them to buy their server OS as well by tying the two together with secret protocols that make it hard to use a different server with Windows desktops. Since doing so is clearly against the law both in the US and the EU and MS was convicted of it both in the US and EU, I don't really see where refusing to fix the problem by providing a level playing ground for Linux and Solaris and everyone else as far as their interactions with the Windows desktop is concerned is in any way confusing.
Listen, I know MS publishes a lot of FUD about this and tries to confuse the issue, but it just isn't that hard. MS built their business model around breaking the law. They knew from the outset what they are doing is illegal and why and they just figured they'd make more money by breaking the law then paying any fines than by obeying the law. So far they've been very right. Even assuming they pay the fines they've acquired they're still right. They're not going to stop unless someone makes them with a bigger stick than this. Stop buying their marketing FUD.
Why give them another 8 days? Isn't it a long time since the last "warning"? The whole give-you-another-two-year thing is stupid. Look at what happened in US. If they do not cooperate, apply *heavy* tax on every windows sales. This is another way to give advantage to competitors. When MS is trying to kill competitors and refuse to cooperate, you can *help* competitors to effectively reverse the situation.
CIFS, for a start.
Don't get me wrong, the Samba project's done a fantastic job of reverse engineering SMB, but they're miles behind domain management - you can't run an Active Directory domain with a Samba backend, the best it supports is an NT 4 domain.
Work is afoot to support AD domain management, but realistically the release of something like that would probably give it a huge boost.
That may be why MS aren't too keen to release anything...
N. Kroes answer (according to Volkskrant article): "I don't have the immortal life."
Data formats are NOT trade secrets.
If anything, the Microsoft corporate officers should be jailed for misapprpriateing the private data of it's end users. That is effectively what it does when it choses to encode that data without being willing to document the manner of that decoding. They're holding everyone hostage. It's just that people have finally wised up after being duped for years on end.
So the task of telling Microsoft what to go do with itself is not as simple as it should be.
A Pirate and a Puritan look the same on a balance sheet.
The EU is so against Microsoft because Microsoft is so against obeying the law in the EU.
As far as I can recall, MS did endeavor to document a bunch of their interfaces. The response was that it was insufficient. MS tried to find out how it was insufficient, and was told that it was MS's responsibility to figure that out.
MS does produce technical documentation for a whole slew of its products. Look at the API-level documentation that is on http://msdn.microsoft.com/library/. It's just not the most obvious documentation. Is it usable? For the most part. Does it cover every single idiosyncracy? No.
MS did make a good faith effort previously, and the only response they got was a thumbs down with no guidance on what to do differently. I don't really think such a risky prospect as actually having SECRET APIs would have been permitted by the company's legal department after the antitrust mess. Rather, I just don't think the documentation is that good. An uncommented header file would be documentation; it just wouldn't meet the needs of the EU regulators.
Providing MS with an EIGHT DAY deadline is just absurd. Even if everyone qualified as a technical writer was thrown at the problem, there still needs to an information flow, probably from some people who are on vacation for a month now that Vista has shipped. There's only so much that can be written at a time, and only so much that can be documented in any period of time. Add in the time for editing, and legal review, and to verify completion... eight days? It's just an excuse to charge Microsoft with more money. Even a month would be more of an indication that they expected Microsoft to be able to comply. Given that up until this point Microsoft was working at having it done next July, the scheduling cannot be compressed by 8 months.
Had the commissioner provided a more reasonable deadline, Microsoft could be cast into a harsh light by this ruling, as the request already existed, and the Commissioner just disagreed with the amount of time they were claiming to need. Microsoft has tried to provide documentation before, and was told it was insufficient -- doubtless this time they wanted to avoid this charge.
Anyone who has ever written technical API documentation will probably be inclined to agree that trying to compress even a three month timeline into 8 days will be well nigh impossible. The commissioner's demand is effectively a demand for money, not for documentation; I can't see any way ANY company, no matter their motives, would be able to meet the deadline.
These consideratioons are not present in the EU so you get more even handed enforcement of the antitrust laws. It's also a chance to stick it to one of the EU's main economic competitors, the US which I guess is the gist of your comment. But make no mistake about it, MS is as dirty as hell in both the US and the EU. Can you imagine what would have happened to MS in the US courts if it was a French company?
SMB/CIFS, MAPI, Microsoft DNS, RPC over HTTP, Office APIs, and so on... The list is here.
Uh, no. This is a legal fine. MS can't pay a fine to a court with vouchers for their software any more than you can pay a parking fine with a book of coupons.
What's purple and commutes? An Abelian grape.
I'm not saying that's not the way things *should* be. I'm just saying that people always game the system to their best advantage. What you propose is a fantasy. Nobody would create software that way if they could use the system to their own advantage. I agree with your idealism. That'd be great. But it's also not the way it would be.
I write for two reasons: to gain insight from people's replies (which would be VERY costly to do if I hired them to reply, even the emotional ones), and to promote some free market thoughts as people work the problems back to their source: the lack of freedom under a State that wants to regulate and restrict everyone but those that can afford to bribe the State.
I'm never quite sure where I fall on copyright law. I write, and I know how hard it would be for writers to make a living without copyright protection. But, like you, I feel the prohibition against the free exchange of information is also wrong.
I write, but I repudiate copyright entirely. Everything I have ever written -- books, blogs, music -- and everything I have ever designed -- art, photos, machinery -- I let others copy freely and even use their own name on it with no attribution. I find that this increases the demand for that given market, which eventually helps me if I find a way to be the most competitive against others who are also in the market. I love competition, it has ALWAYS helped me. I've helped my own employees start competitive businesses against me, and I've still grown as more customers come into the market. I see no reason for "protecting" my thoughts or actions against mimicry.
And that the problem: any system that allows any behavior will result in exploitative behavior. The arguments in favor of a free, unregulated market (that is, "let the market decide") always remind me of vigilantism: if someone murders, let the family of the person murdered punish the murderer. An unregulated market would result in the larger corporations using their market force to regulate the market, and the citizens will never get much of a say.
That's a good opinion, but I'm not sure how true it is. Without a tyranny in the State, a company producing a product or service would have competition -- no matter how big that company is. Even billion dollar chip manufacturers have competition, because millions of individuals invest to try to compete on that level. The only thing the State changes is that they sometimes create an infinitely high barrier to entry through copyright and patent laws. Getting rid of that infinitely high barrier to entry may leave us with a high barrier to entry, but high is easier to jump over than infinitely high.
They *would* do this. They already do this to gain more control than copyright or patent law gives them currently. Yes, we should certainly strike down patent laws, and perhaps even copyright. But that won't change essentially destructive corporate self-interest. When the corporations control the market (such as IBM did years ago, and Microsoft does now), they warp the market to their own favor. They will do this no matter what laws exist or do not exist.
But while they're trying to maintain control through force, they'd have dozens if not hundreds or thousands of competitors nipping at their ankles. Eventually, all it takes is one bacteria to take down a giant. It has happened through all of history, and it would continue to happen unless the company in power was able to truly stay more efficient or cheaper or produce a better product. Competition never goes away in a less-regulated market.
This is nothing more than bribery for trade secrets. Period. The only thing Microsoft can do is retaliate.
1) Immediately release a statement that they are horrified that they are being pressured to make copyrighted works public or else face fines.
2) Announce an IMMEDIATE withdrawl of Windows software from the EU. They will buy back licences at fair market value, as long as there is proof that the OS has been removed from the system. Announce no more support for those that continue to use it.
3) Profit.
How? The EU would shit their pants if Microsoft pulled Windows from the market. They could not function without it. Try doing a multi country conversion to Linux without disrupting business, it can't happen. They would come crawling back with their tail tucked.
Call their bluff, Microsoft. This is grade A bullshit.
"I'm from Europe and the unspoken truth here is that the EU officials are severely corrupt"
Acutally you have it the wrong way round, it's MS and its lobbiests who are doing the corrupting. Batting on their side is also Charlie McGreevey a member of one of the most corrupt goverments in Europe. he's also behind the repeated attempts to get a US style patent system introduced into Europe.
was EU corruption (Score:5, lies)
davecb5620@gmail.com
Alright, I'm not going to argue about MS being a monopoly or not, to be honest, I don't care. I don't care because one company setting the standards and everyone complying with it creates an environment of stability in computers. Most crashes, problems, and issues I have to diagnose and repair are most often caused by thrid party vendors that wrote software without bothering to read the existing Whitepapers on the subject...which is why this is POINTLESS. Even if MS complies have the people out there won't bother to read the information unless they are trying to take clients away from MS products. I know that's the point right? They're using legal action to ensure that people can play on a level playing feild. It's sounds liek a good idea, but it's a recipe for chaos in the long term. All you end up with is the establishment of new proprietary information from competitors of MS that eventually wil have to be sued to hand the information over as well, and the person who sues them, will use this ruling as the basis for their law suits.
Making MS hand over documentation on protocols is pointless, there are white papers that describe eveything important to a real programer, with a single exception, file formats for Office products (Word, Excel, Access, Outlook, Visio, etc) The formats used in Office 2007 are completely different....making this a pointless ruling. They've already changed the very protocols they've been told to hand over, and since 2007 isn't out of BETA yet, it technically isn't covered by the ruling. Smooth move.. this is what happens when courts are allowed to make rulings on technical systems they arn't qualified to rule on. They missed it big time if they really want to level the feild.
Personally I don't think making them turn over anything beyond a table of file format struture is fair to MS or the consumer. LEts say they force MS to turn over documentation about security in Windows (crippled as it already is) you've just given evey hacker a road map! That's about as stupid as a CNN reporter asking, "Can you give me the exact location of the troops?" while the enemy is watching CNN. Please, they want an API to turn off secuirty center, they got it. They want to re-write parts of the OS, screw em. It's not their OS, it's not their right to create more issues for the end user. Symantec and McAfee in particular are the worst abusers of the OS to date (at least in the US), and are ten times worse than MS about their anti-competition practices. At least with an OS you know what you're getting, you can expect it to infest every part of your comptuer, but half the people out their don't get that the copy of Security Center or Internet security that came with their new PC, is so deeply embeded in the OS that half the time the uninstall fails leaving your systems crippled forcing you to reinstall the software or risk having to reinstall windows.
Anyway, rant over. This ruling is pointless, it accomplishes nothing except having MS turn over file format informaiton to help Belgium's conversion to open office and doesn't do crap for the consumer the court is suppose to be protecting.
Huh? There are plenty of EU-based companies which got harsher sentences than MS right from the start. MS initially got no fine, and was just ordered to document the protocol. MS got fined only after it ignored the ruling and the deadline. MS's fine only got so big by ignoring the daily fine for 2.5 years. (It's basically like ignoring a parking fine for 2.5 years straight, and continuing to park in front of a garage every day. Of course it gets to be big money after a long time.) _And_ it's been given a sweet deal in that if it finally releases those docs until the final deadline (in 8 days now), it gets to pay no fine at all.
EU-based corporations and cartels typically got slapped hundreds of millions of Euro fines right from the start.
I.e., whatever xenophobia might exist in the EU (and it exists), this judgment was the exact opposite. MS was given a much better deal than any European company that broke the anti-trust laws. I.e., if any discrimination is at work here, effectively the EU then discriminates against its own citizens and companies by giving MS a much better deal.
A polar bear is a cartesian bear after a coordinate transform.
The lawyers and judges (who don't generally understand software development or architecture at all) keep making numerous faulty assumptions.
You're the one making faulty assumptions. Many of the people working on this case know all of the things you cite, but they don't matter. This is a punishment for MS breaking the law that MS bargained for after they were found guilty. They claimed they would do it.
Just because Microsoft doesn't publish documentation for every conceivable thing they do, it doesn't mean a competitor is incapable of interoperating with their stuff.
If they're writing something that connects their desktop OS in the market they've monopolized with the server OS in a different market, they bloody well knew it was illegal unless it was open and documented so they bloody well should have done so. Or, they could have used the original standards they corrupted in order to make these protocols and avoided breaking the law in the first place. It doesn't matter if the Samba team can reverse engineer well enough to get Linux to mostly work. By law they have to have exactly the same capability to do so that Microsoft has and that means clearly written docs or the original developers hired to help them and anyone else who wants it.
If Microsoft wants to take over the server OS space, great. Let them do it by making the best server OS, not with this illegal bullshit. In my opinion, MS should be fined a hell of a lot more than they have been and the money handed over to all the competitors they have harmed. The damage they have done to the entire industry will take many years to fix and it won't start until this is solved.
If this were a first offense or something I'd be a little more lenient but it isn't even close. They've done this same thing again and again and they continue to do so. It needs to be made clear that breaking the law as part of your business plan is not acceptable and you will be smacked down hard if you do it. The US should break them up, but since the US courts are too corrupt, the EU should make sure they walk away from the next meeting of directors with a clear message that breaking the law will not be profitable.