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Microsoft Settles Iowa Antitrust Case

ForestRangerBob writes "Comes v. Microsoft is over after Microsoft agreed to a settlement. The class action lawsuit alleged that Iowa consumers had been overcharged for Microsoft products for a decade owing to Microsoft's monopoly of the market. Predictably, the lawyers are about to get a big payday and 'the software giant will certainly be on the hook for millions of dollars, some of which may end up helping Iowa school kids. Average consumers will probably end up with a few bucks or a coupon for a free operating system upgrade, but the real winners will no doubt be the lawyers — the team prosecuting the case has already earned $60 million in legal fees from a 2004 case in Minnesota that charged Microsoft with similar offenses.'"

39 of 198 comments (clear)

  1. documents on iowaconsumercase.org gone by whoever57 · · Score: 4, Interesting

    When I first tried to read the comments, I got /.'s familiar "nothing to see here..." message, which also describes the site that hosted the documents from the Iowa case. Going to the site hosting the documents now results in a login request.

    --
    The real "Libtards" are the Libertarians!
    1. Re:documents on iowaconsumercase.org gone by Anonymous Coward · · Score: 2, Informative

      I used wget to take a mirrored copy of the entire site about two weeks ago so some of it could be available then. If someone could advise me regarding the legal side of making it public, then I will make it public. Please send advice to iowaconsumercase@dodgeit.com

  2. You're kidding, right? by Dunbal · · Score: 3, Funny

    Average consumers will probably end up with a few bucks or a coupon for a free operating system upgrade

          No, that's worth WAAAAAY too much. The consumers will get a free Microsft Vista (tm) mousepad.

    --
    Seven puppies were harmed during the making of this post.
    1. Re:You're kidding, right? by Joebert · · Score: 2, Funny

      Oh, they'll get a free Vista upgrade alright...

      --
      Wanna fight ? Bend over, stick your head up your ass, and fight for air.
    2. Re:You're kidding, right? by schwaang · · Score: 4, Insightful

      Average consumers won't even hear about this. Just like in the California settlement, I don't know anyone who actually filed. Two people I know started the process and were intimidated by the paperwork because they didn't have receipts for computers they bought years before and were afraid of being audited. (They both had legitimately purchased copies of eligible MS products.)

      Hopefully the money that doesn't go to the lawyers will at least go to schools or something.

  3. Laywers are the winners by nurb432 · · Score: 2, Insightful

    Well duh.. even the losing side's laywers get paid well.

    --
    ---- Booth was a patriot ----
    1. Re:Laywers are the winners by EggyToast · · Score: 2, Insightful

      Yeah, I love how the article makes it sounds like lawyers don't almost always work for winning case payouts. I'm sure lawyers would love if retainer fees could pay for running an independent business, but that's simply not the case.

      If people are anti-lawyer, they should stop suing people. But then other people would have to stop trying to break the law. <sigh>

    2. Re:Laywers are the winners by hackstraw · · Score: 2, Interesting

      Well duh.. even the losing side's laywers get paid well.

      The problem is that MS is a little upset that it cost them some of their beloved cash, but they shake it off and think of this as the cost of doing business. They are like everyone else, they don't want to pay for utilities, taxes, or whatever, but its just the cost of doing what you do.

      What I want is a real judgement or change from these cases, not a glorified parking ticket. What is going to change from this? Nada.

      What is microsoft a monopoly on? A poorly implemented, poorly documented, closed source, closed API "standard" operating system where the only people who know the standard is MS.

      From what I understand, cifs was opened up (don't know the details here, but that is what I understand), but that is only the tip of the iceburg of MS's embrace and extend vendor lockin thing.

      UNIX/Linux has POSIX, IEEE specs, open source, rfcs, and all this. Heck, Microsoft had its own version of UNIX back in the day, and it was pretty decent. But the fact is that we don't want BSODs, we don't want viruses, we don't want to be yelled at by paperclips, we don't want to have the tray yell at us or telling us we have too many icons on our desktop, we don't want crappy browsers pushed on us, we don't want 99% of what MS gives us, we want something that runs our applications on our hardware, and something that "just works".

      I say its time for MS to be forced to publish their "standards" and APIs.

    3. Re:Laywers are the winners by nomadic · · Score: 3, Insightful

      We (the USA) needs to scrap legal jargon and rewrite the laws plainly, then let a judge decide if the law applies to an act and let the jury decide if they're guilty.

      The more plain they are, the more ambiguous. Give me an example of what you would consider a "plainly written" law, and I guarantee I will find ambiguity or loopholes in it.

      Laws are structured for precision.

  4. The system works! by Iphtashu+Fitz · · Score: 3, Funny

    Not...

    Almost makes me wish I was a lawyer. Almost.

  5. wow by Billly+Gates · · Score: 5, Funny

    A coupon so Microsoft can increase sales of more copies of windows.

    Boy, that sure showed Microsoft.

    1. Re:wow by KKlaus · · Score: 2, Insightful

      That's actually more insightful than funny, in my opinion. If I buy a laptop that burns my house down, you think I really want store credit? The worst thing is that I suspect it's actually profitable for the "losing" company when coupons are forced. Customers are drawn back to someone they never would have bought from again because bargains are attractive. Some punishment.

      --
      Relax I just want some peanuts.
    2. Re:wow by EvilRyry · · Score: 2, Insightful

      Agreed. Grandparent really should be insightful. This certainly isn't the first time that Microsoft has been 'punished' by being forced to give away free products. In reality this just tightens their grip on the market. Especially when schools are involved.

  6. Payoff to the Lawyers by ATestR · · Score: 5, Funny

    To be fair, the lawyers should have to take their cut in coupons for Microsoft products, just like everyone else will.

    --
    âoeAny society that would give up a little liberty to gain a little security will deserve neither and lose both.
  7. Bias against lawyers? by Biff98 · · Score: 2, Funny

    NAH! That's objective reporting at it's best. NO bias at ALL!

  8. Re:Bet the states are licking their chops now by truthsearch · · Score: 3, Funny

    But... but... it's the ultimate. No price is too high!

  9. Class action lawsuits: welfare for lawyers by mschuyler · · Score: 5, Informative

    Class action lawsuits are one of the most mis-used legal tactics in the country. Look at ANY class action lawsuit against ANY company. The 'remedy' afforded to consumers is on the same level as a few bucks in rebates: Most people don't bother with jumping through the hoops (and be sure and include the SKU from the inner flap of the outer box you just threw away and a certified copy of your birth certificate) and the companies know this. They don't amount to anything anyway. It's just an accountng trick. But the lawyers, oh, my goodness. Millions of dollars to the law firms for "all their hard work." What a crock. The kids of Iowa will see nothing tangible. /rant

    --
    How about a moderation of -1 pedantic.
    1. Re:Class action lawsuits: welfare for lawyers by nomadic · · Score: 2, Informative

      Look at ANY class action lawsuit against ANY company. The 'remedy' afforded to consumers is on the same level as a few bucks in rebates

      Ok, you completely misunderstand what a class action is. It is not limited exclusively to consumers, or especially large numbers--you can have a class action on behalf of just a few people. And there have been plenty of class actions where class plaintiffs each recovered significant amounts of money. Just because something hasn't been reported on slashdot doesn't mean it doesn't exist.

    2. Re:Class action lawsuits: welfare for lawyers by gumbi+west · · Score: 3, Insightful
      Here's the thing. Our market uses a capitalist market structure, so the firms that make the most money beat the other firms. Put another way, if there is a way to make more money, the contentious executive who is thinking of his shareholders will make the money (most MBA graduates say that the maximizing shareholder value is the primary focus of an employee).

      In light of this, when someone does something counter competitive, just taking money away from them helps quite a bit. Now we can argue about where it should go, but this is better than the other options (leaving the money with the company that swindled the consumer). Put another way, if one company starts to swindle and nothing happens, all competitors will either start to do the same or go out of business. Class action lawsuits provide some protection against that and are an overall boon for the consumer in net, if not in effect per lawsuit.

    3. Re:Class action lawsuits: welfare for lawyers by c0d3h4x0r · · Score: 4, Funny

      Just because something hasn't been reported on slashdot doesn't mean it doesn't exist.

      Well, shit. There goes my proof for the non-existence of God.

      --
      Moderator hint: a comment is neither "Flamebait" nor "Troll" if it is true.
    4. Re:Class action lawsuits: welfare for lawyers by Oddster · · Score: 2, Insightful

      You are absolutely, one-hundred percent wrong. Class action lawsuits in the United States are the most sane and civil form of business-consumer conflict resolution this world has ever seen, and are in fact the only way in this country for consumers to get justice against unsavory businesses. If you knew anything in detail about class action lawsuits, there is no way you would ever espouse the opinion you do, period. The only way you could be under this perception is that you have been reading about nothing more than high-profile lawsuits, from Big Media no less, which are geared solely towards sensationalism, not facts.

      Or perhaps the next time a Dell laptop battery explodes on your lap, you'll call a plumber to fight for your compensation.

  10. Good to know by Anonymous Coward · · Score: 2, Insightful

    Wow, I never knew you could sue people if for overcharging. This is great. Now I am going to go sue that burger place i just ate at for charging me $10 for a burger, when it obviously should have cost six dollars (according to Carl's Jr.)

    And for some reason, I thought we won the cold war...

    1. Re:Good to know by Scudsucker · · Score: 2, Interesting

      And you know, I think part of the reason that it is so hard to find computers with alternate operating systems have more to do with the producers of those operating systems.

      Nope. Thanks for trying, though.

      I'm sure Dell would love to sell computers with the MacOS, problem is Apple doesn't let them.

      Because Apple doesn't want to out of frikkin business, that's why. Dell had plenty of time to sell computers with BeOS and Red Hat, who would be quite happy to sell through Dell.

      If there was a huge demand for *nix OS's, then the OEMs that make them (yes, they do exist) would see an increase in sales, and by the laws of supply and demand, more companies would work to incorporate those sales. However, the demand is not there, thus there is no increase in sales, thus most companies will not bother to sell those computers.

      No consumer demands Windows. Consumers demand platforms for their applications. And where are the most applications? The Win32 api. So where do consumers go? Windows. And since most consumers run windows, what api do most software companies develop for? Windows. A real anti-trust settlement would have broken up Microsoft into separate companies and force them to open their api's.

      I don't think this will happen, however, do to the fact that gaming is on the rise as far as standard uses of a computer, and macs are no good for games, thus the jokes regarding the lack of existence of 'mac gamers'.

      "Not as good" does not mean "no good". Besides, this reinforces the monopoly argument: if DirectX and Win32 were forced open, Linux vendors and Apple could run games just fine on their systems without modification.

  11. Justice? There is only one kind of justice.... by zappepcs · · Score: 5, Insightful

    that is when the people who are dissatisfied with MS and how the courts fail to create fair business practices from them all switch to Linux or Apple.... THAT would be justice

  12. Real winners are Microsoft by RyoShin · · Score: 3, Interesting

    but the real winners will no doubt be the lawyers
    Of course, but here Microsoft wins, too. The article doesn't say how the exact payment would be (the article says just "millions of dollars"), but we'll be conservative and say that Microsoft will have to pay out at least 50 million (if it were 100 million, they probably would have said "hundreds of millions"). A quick Google search says that their revenue is around 10 billion. That means they have to pay a half of a percent of their annual revenue. Looking at it another way, it will take them less than a week to recoup that.

    This is only a bit more of a punishment than the fine from the EU of a couple ten thousand dollars a day.

    And what else do they have to give out? More Microsoft products! Either a voucher, or software for schools. And from that comes support contracts, future upgrades, additional add-ons, all which will cost the schools and/or users additional money.

    Why do courts and defendants even allow this? If I cut myself with a razor because it was used shoddy construction and a blade wasn't secured properly, and sue the company, why would I want another razor from them? I may get the razor free, but I still wind up having to buy blades for it later.

    Granted, they aren't saying they don't want Windows, just that they were overcharged, but this still seems ludicrous.
  13. Doesn't Qualify by Petersko · · Score: 2, Informative

    "Bet the states are licking their chops now... with Vista Ultimate pegged at 399.99. talk about overcharging."

    I doubt it would qualify. After all, there are three editions below it, each of which will successfully run the vast majority of Vista-compatible products. In no way are you forced to buy the top of the line. You'd have to argue they are overcharging for the "core" or basic product. Maybe they are, maybe they aren't. That's a different question.

  14. The obvious next step by frovingslosh · · Score: 3, Interesting

    So when do we start the law suits against the lawyers who screw the average guy by filing lawsuits on their behalf and then making all the profits and getting us coupons? Seems like a lawsuit that the jury couldn't help but award to us.

    --
    I'm an American. I love this country and the freedoms that we used to have.
  15. Helping schoolkids? by Doctor+Memory · · Score: 2, Informative

    the software giant will certainly be on the hook for millions of dollars, some of which may end up helping Iowa school kids Oh, yeah, Microsoft loves helping schools. I remember when I lived in Portland, Microsoft was incredibly helpful.

    Actually, as it turned out, they were helpful — they helped spur the development of K12OS...
    --
    Just junk food for thought...
  16. Re:Makes You Wonder by ChrisA90278 · · Score: 3, Funny
    I've been running for president under the "common sense" party for years. I can solve ALL problems with simple common sense. For example crime: As you say, it is better to PREVENT the crime. So simple common sense says to put people in jail BEFORE they commit the crime. Gosh how easy was that! I'm for the death penalty too. We should execute people before they can murder someone. Prevention, that's the way to go.

    I have other common sense solutions to all the other problems too.

  17. As a citizen by Maxo-Texas · · Score: 2, Insightful

    these cases really upset me.
    I get mail all the time showing the lawyers are going to make 4 to 16 million dollars and as a member of the class I'll get less than a hundred bucks. I do not join the class. I know ultimately, i'm going to be paying higher prices because of this crap.

    --
    She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
  18. I disagree by rajafarian · · Score: 2, Interesting

    I say its time for MS to be forced to publish their "standards" and APIs.

    I disagree. I think that Microsoft has to be stopped from using anti-competitive tactics in their way of doing business and the rest will take care of itself. Let them keep their junk, closed source, buggy operating system.

    I say one set of prices for EVERYONE published publicly with no contract tie-ins to any other MS or competing product coming into the equation will take care of everything!

  19. Re:$60 Million? Oh Noes! by Scudsucker · · Score: 2, Insightful

    Promised to give, you mean. And what he promises to do with the money in no way mitigates the way he got the money in the first place - it would be like saying Pablo Escobar should be free from criticism if he gave his money to AIDS and caner research. It's also worth pointing out that they are big backers of the Discovery Institute, who are big backers of forcing Intelligent Design into science classrooms.

  20. Re:Let's sue on behalf of Linux by dadragon · · Score: 3, Funny

    Did you try Google? http://www.linuxprinting.org/show_printer.cgi?recn um=Okidata-C5300

    It's a postscript printer, you shouldn't need drivers. You do need a custom PPD file, though: http://europe.oki.com/fcgi-bin/public.fcgi?pid=6&c id=135&chid=10&pdflag=&prid=407&OSId=5&languageId= 1

    Both of those came from the printer's page on linux-printing.

    --
    God save our Queen, and Heaven bless The Maple Leaf Forever!
  21. Microsoft Is Evil by dbdunn23 · · Score: 2, Interesting

    Yes I know all you /.ers are gonna bash me for this, but quit acting like MS is the only corporation that buys market share. Do you think automobiles still run on gasoline because car makers think it is a good idea? No, they run on gasoline b/c Exxon/Mobil has paid for them to run on gasoline. Do you think Gov. Perry (Texas) passed a law that requires all pre-adolescent girls to get vaccinated against an STD b/c he thinks it is in their best interest? No, he passed the law b/c Merck gave him a s**t load of money. I know its fun to bash MS b/c they throw sacks of money around to stay at the top of the market, but there are hundreds of companies that do it, and thousands that would if they had the money.

  22. Minnesota Settlement... by Rick+Richardson · · Score: 2, Interesting

    02/13/2006 FUNDS RECEIVED *type: *DEPOSIT $251.00

    $251.00 is serious money from Microsoft Corp, NOT "Average consumers will probably end up with a few bucks or a coupon".

  23. Wouldn't it be nice by bwbadger · · Score: 2, Interesting

    Wouldn't it be nice if the judge could rule that the public good would be best served by seeing the case through, and did indeed ruled so in this case?

  24. Re:Stop and think for one second... by suckmysav · · Score: 4, Informative

    This would be a valid point were it not for the fact that Microsoft uses its vast market power to exclude alternatives from being visible at the point of sale. By ensuring that the likes of Dell, HP/Compaq, IBM, Acer and Gateway don't offer alternative OS choices through threats of massive price hikes via their OEM contracts they make it virtually impossible for someone to purchase a brand name PC without purchasing Windows with it.

    Have you ever tried buying a PC without Windows? There are only two ways to do it. Buy a whitebox from a small retailer or stumble upon the occasional PC with pre-loaded linux that is usullay hidden deep in the bowels of the websites of online retailers such as Dell and HP.

    In the first case a lot of people are hesitant to buy non brand name PC's because they incorrectly assume that they will get better quality if they choose a brand they "know" (read: have heard of).

    In the second case it is usually impossible to find any PC loaded with linux just by connecting to a retailers main page and just clicking. You usually have to already know that they offer a Linux PC and then have enough ability to search and find it on the site. Often you can't even find it using the search tools on the site and you have to do a site: search in Google, which most people don't even know you can do.

    You can't just go pick a PC and then choose between Windows and Linux, which is how it would work were there a level playing field.

    This is why people are always "bashing on Microsoft". If they had faith in their own product then they would have no problem with competing fairly against Linux.

    Clearly they don't have faith in their products, so why should we?

    --
    "You can't fight in here, this is the war room!"
  25. Aren't we all the cynical ones by smchris · · Score: 2, Funny

    The Minnesota settlement got my wife and me a refurb Epson 2400 scanner, a cheap HP inkjet (both linux compatible) and three LinuxStore "Tux" keyboards from Cheapbytes.

    I'll take it. But, yes, I would rather be using IBM OS/4 HyperDrive today.

  26. Re:Stop and think for one second... by suckmysav · · Score: 2, Informative

    Are you suggesting that Microsoft does not use their dominant position in the market place to enormous amounts of pressure major vendors to not offer Linux as an alternative? Do you really believe that Microsoft is willing to compete head to head with Linux on equal footing? Why should they be allowed to threaten OEMs with huge price hikes if they dare to offer alternative products?

    As for Walmart, as far as I am aware they were selling absolutely crappy ultra-cheapo white boxes without any sort of ability to advise potential customers or offer much in the way of after sales support. Considering that 90% of the planet do not have Walmart stores anyway I don't see what they did or didn't do as being particularly relevant. When HP starts offering a choice between pre-installed OS's I will take notice.

    I have noticed that HP have very recently started offering laptops with nothing but FreeDOS on them (along with a Suse Linux 10 Certified tag). Whether that is due to the widespread disappointment with Vista remains to be seen.

    I've also noticed that while most major suppliers had removed Windows XP as an option on their new PCs for launch day it now appears that XP is back on sale, and in a lot of cases as the default option.

    --
    "You can't fight in here, this is the war room!"