Russia Launches Anti-trust Probe of Microsoft

NewYorkCountryLawyer writes "Russia's state anti-monopoly service said on Thursday it had launched a probe of Microsoft over cutbacks in supplies of its Windows XP operating system in Russia. The agency said it thought Microsoft had violated antimonopoly legislation by cutting delivery of Windows XP operating system to Russia both separately and pre-installed on personal computers, as well as in its pricing policy on the product. It said it would consider the case on July 24, 2009."

Comments

Russia launches...

[Anonymous Coward]

When I read the first two words I nearly had a heart attack, since the other launches lately have been NK testing missiles.

Re:What about Gazprom?

[BeardedChimp]

It's worse, Gazprom is state controlled and so Russia actually encourages its monopoly by helping to extort foreign companys.

I can understand the thinking though, the relevant analogy would be if there was a car company with 90% monopoly with the other 10% not being compatible with the petrol. The car company brings out a new more expensive model while refusing to sell the old model and stopping manufacture of old parts. Nobody has a choice since the other cars won't run on their fuel and so the company can keep forcing upgrades.

Re:This actually sounds reasonable.

[man_of_mr_e]

XP is a 9 year old OS. Even auto makers are only required to support the parts for their cars for 7 years. At what point isn't it an anti-trust violation to want to get rid of an aging product? 15 years? 30?

There isn't a single Linux vendor that supports a 9 year old version of Linux without paid support, and Apple certainly doesn't support 9 year old versions of MacOS either.

Re:Anti-monopoly?

[Anonymous Coward]

Because the market is asking for XP but MS is in a monopoly position and they can ignore the market request. Your statement of driving people towards the competition is only valid in a competitive market. The OS market is not competitive. In reality, Linux offerings are the only true competitor since hardware and licensing limits prevent someone from buying OSX and installing it on their computer and that makes up what? 1-2%?

If the market were competitive, MS would be forced (by market forces) to keep selling XP over Vista, or see an exodus of customers. That is not possible here, because there is a monopoly actor.

Thanks Europe

[BasharTeg]

It appears that the European efforts have triggered a new trend whereby EVERY country a multinational corporation operates in that isn't its native country can start engaging in the MoneyGrab(tm) technique. I mean why let all those euros or rubles leave the country? Why not have companies come in, sell products, and then since you can't tax the hell out of them due to the WTO and the ensuing trade wars, instead just trump up some charges over being too succcessful and "tax" them that way.

Can someone explain to me why this isn't a WTO issue and why these kinds of taxes... I mean fines aren't regulated under the trade agreements?

And don't tell me how they're just trying to stop the evil monopolies. I'm fine with them fining the shit out of Microsoft for bad behavior as long as they're willing to donate 100% of the proceeds to charity. It's not about the behavior, it's about the money.

Re:Thanks Europe

[Elektroschock]

Because antitrust is about enforcement of competition rules as to create a free competitive market. WTO is concerned about barriers to free trade and the promotion of better competition. They basically have he same objective in trade.

It is false that Microsoft is taxed or that money was a motivation for these policies. At least on the EU side the large fines occured because Microsoft refused to comply with the moderate sanctions and played stupid. It was the first company ever which did not comply with a ruling.

And don't forget that the US let them off the hook, just because Bush was reelected.

In fact competition authorities don't get money or staff for the imposition of fines but rather strong lobbying and a lot of work. They would prefer to arrest offenders but criminal sanctions are not at their disposal. Deterrent fines is all they can issue and the way Microsoft communicates demonstrates that they do not show any respect.

Russia is cracking down on piracy, Linux spreads.

[Reservoir Penguin]

My mom works at one of the research institutes in Akademgorodok, a major research center near Novosibirsk, she along with hundreds of others have been running pirated windows/office/photoshop/matlab for as long as I can remember. This time it seems the government is serious about the crackdown on illegal software. Each lab director got a direct order to either provide every scientist with lisenses for every piece of software or install linux. Well. they all have been running Ubuntu since yesterday. So far so good.

No rule of law in Russia

[cryfreedomlove]

If I were MSFT, I'd be worried about the weak rule of law in Russia. It is highly likely that there is pre-determined outcome in the mind of the Russian officials running this case and any 'investigation' will be a show trial leading to that pre-determined outcome.

I have visited Russia many times. Might makes right. It is a system that breathes on graft and corruption.

Re:How about Ford model T ?

[mcgrew]

WTF? That car's older than my dad, and he's in his seventies. And guess what? You can STILL get parts for one! Try getting any parts for Windows 98, that's not even 10 years old. I have older t-shirst than that.

Now please put the chair down, Steve.