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EU Investigating Microsoft Over IE Bundling Again

vu1986 writes, quoting GigaOm: "Microsoft has confessed to violating its browser choice agreement with European antitrust regulators, after they opened up a fresh investigation into the company's behavior. This is a big deal, not least because it means the company could now face a fine of up to 10 percent of its annual turnover — $7 billion at last count." Microsoft agreed in 2009 to inform users they could install other browsers. They did, mostly, but Windows 7SP1 users didn't get the software update. Microsoft is claiming it was just a software bug, and have taken actions to fix it.

48 of 299 comments (clear)

  1. what about there boot loader lock in by Joe_Dragon · · Score: 5, Insightful

    what about there boot loader lock in that is even bigger.

    1. Re:what about there boot loader lock in by MickyTheIdiot · · Score: 4, Informative

      No doubt. I wish they would weigh in on the boot loader issue. It makes the I.E. wars seem small potatoes.

    2. Re:what about there boot loader lock in by jbolden · · Score: 4, Informative

      They are concerned that people installing will get freaked out by the various warning about turning off security features. It isn't very expensive, so they are just paying rather than have a problem.

    3. Re:what about there boot loader lock in by kelemvor4 · · Score: 4, Informative

      what about there boot loader lock in that is even bigger.

      Are you talking about UEFI secure boot? That's not a "microsoft" thing, that's a UEFI thing. Just to be clear, it was jointly developed by AMD, American Megatrends Inc., Apple Computer, Inc., Dell, Hewlett Packard, IBM, Insyde, Intel, Lenovo, Microsoft, Phoenix Technologies. All this whining about an optional security feature sounds like a lot of whining about nothing to me. If you want to load linux on a machine that shipped with windows (and therefore UEFI Secure boot enabled) you just turn off UEFI secure boot. It would be trivial for anyone capable of installing linux in the first place. If a vendor wants to sell pc's with linux preloaded, they can ship the pc with secure boot disabled. If an OS distributor wants to get their OS properly signed so they can use secure boot, they can do that too.

      Get over this non-issue.

    4. Re:what about there boot loader lock in by Anonymous Coward · · Score: 2, Informative

      If you want a dual-boot with Windows 8,. you have to go into the BIOS every time to switch the OS. So reboot - go into BIOS - change secure boot - save settings - reboot and boot into another OS. When you want to go back to Windows 8, you have to jump trough all the hoops again.

      While it is indeed possible (for now - this is not guaranteed to last in any way) to boot another OS, switching between two OS is a cumbersome procedure. This creates a mental hurdle with the "average" user, that will give up this tiresome hoop-jumping after a few times. Result - a hindrance for the use of an alternative OS and a psychological advance for Windows 8, because people will -wrongly but nevertheless- associate Linux (or another OS than Windows) with difficult and cumbersome.

      While UEFI is not developed by Microsoft, this company demands secure boot is enabled to get a certification for Windows 8. Hardware makers want this certification, because making hardware that is not Windows 8 "compatible" just wont sell (rightly or wrongly, but that's what they are facing). So - to keep themselves in business these hardware makers just have to comply to the Microsoft demands. Microsoft has the hardware makers in a iron grip - make no mistake about that.

      Now - I said "for now" when I said the desktop hardware is not "locked down" like the ARM based hardware is. It would not surprise me if the next version of windows will get a certification demand that will say secure boot will be the standard, without the demand to make it switchable. It is not difficult to see the slippery-slope that was started with UEFI's secure boot. I predict in the future it will become harder and harder to run anything else than Windows on the hardware you bought. This makes the adoption of Linux or any other OS harder and harder.

      Bottom line - Microsoft want to sabotage the adoption of Linux, and with the introduction of a lot of psychological (and physical) hurdles to run anything else than windows they seem to succeed in this goal. This gives Microsoft an unfair advance...

    5. Re:what about there boot loader lock in by Anonymous Coward · · Score: 5, Interesting

      That won't happen

      The recently deobfuscated https://joindiaspora.com/posts/1799228 Skype binaries show there's a (US?) Government backdoor.

      Apparently security agencies were unhappy that encryption and decentralised super nodes made Skype too hard to intercept. The government made funds/incentives available, and Microsoft bought Skype. Microsoft immediately switched Skye away from the peer-to-peer supernodes and over to servers under the control of Microsoft and their government agency sponsors..

      Since the VOIP traffic now goes through Microsoft servers, and Microsoft has the encryption keys, they and their partners can monitor all Skype calls and messages.

      Opening the protocols/standards would allow for decentralizing again, which they wouldn't accept.

    6. Re:what about there boot loader lock in by cyber-vandal · · Score: 2

      How do you know they aren't looking into it. But just in case they aren't feel free to let them know.

    7. Re:what about there boot loader lock in by Elldallan · · Score: 2

      Why should the EU Commission take them up on that offer?
      The Commission should fine them the 7 billion and keep fining them until they're cease to be in violation of EU antitrust legislation.
      The browser choice is not voluntary, it was implemented to stay in compliance with that legislation, Microsoft can choose to either keep the the browser choice screen or not ship a browser with windows at all(including browsers hidden in the OS)

      Asking the Commission to not fine you and in return you will honor the original agreement is likely to get you smacked much harder than they would have smacked you if you had just quietly taken the fine and amended your ways, the Commission does not like to be ignored.

    8. Re:what about there boot loader lock in by Elldallan · · Score: 4, Informative

      And on ARM, Windows has such a small market share, it can't be considered monopolistic (since MS is nowhere near being able to exploit a monopoly position).

      Yes it can, MS has a de facto monopoly on the desktop(win 8), they are using that as leverage in another market(by blocking dual boot), I don't know about US antitrust legislation but that is explicitly forbidden according to EU antitrust legislation.

    9. Re:what about there boot loader lock in by Chaos+Incarnate · · Score: 2

      They've already restored the browser choice screen, and did so within two days of being informed of the issue. And they're not just saying "we'll honor the original agreement", they're saying "we'll extend the existing agreement by over 200 times the breach period".

      I don't see why they would get smacked harder, given their quick turnaround and fairly generous restitution offer.

      --
      Benford's Corollary to Clarke's Law: "Any technology distinguishable from magic is insufficiently advanced."
    10. Re:what about there boot loader lock in by Kalriath · · Score: 2

      Where do you get that dumb idea from? The only source for this claim that there's a backdoor is a crackpot blogspot blog. Wow, really credible.

      And Skype doesn't send all traffic through supernodes anyway - calls are still peer to peer with supernodes being used for discovery (although I think they may also step in if firewall punching is needed as well).

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    11. Re:what about there boot loader lock in by metacell · · Score: 2

      The grandparent was talking about the boot loader issue. It's not just a matter of product quality. It prevents the buyer from purchasing the hardware from one supplier, and the operating system from another supplier, which in turn prevents competition on the market, which usually leads to more expensive products and less innovations.

      If there are natural reasons you can't run a different operating system on a computer (for example, there's no other OS written for that CPU), so be it, but we don't have to allow artificial barriers to competition.

  2. Re:So they going to fine Apple too? by characterZer0 · · Score: 4, Insightful

    I don't recall Apple being convicted of abusing a monopoly. Or even having a monopoly.

    --
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  3. Re:So they going to fine Apple too? by Drathos · · Score: 4, Informative

    There's a bit of a difference. MS was convicted of using their OS monopoly to harm existing competitors in the web browser space. Because of the closed nature of the entire iOS environment, there has never been a competing browser to Safari in iOS.

    One could argue that there is an abuse of position by Apple, but unless/until the courts decide there is, nothing will be done.

    --
    End of line..
  4. Re:So they going to fine Apple too? by Dupple · · Score: 5, Informative

    It's not the same set of circumstances.

    Apple isn't a monopoly and it has not abused a monopoly position, no where near the same market share as microsoft

    The choice people have now regarding browsers could be argued is a result of this litigation by the EU. A good over view is here

    http://en.wikipedia.org/wiki/European_Union_Microsoft_competition_case

    More specifically here

    http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/15&format=HTML&aged=0&language=EN&guiLanguage=en

    and here

    http://europa.eu/rapid/pressReleasesAction.do?reference=IP/04/382&format=HTML&aged=1&language=EN&guiLanguage=en

    I'm probably gonna get modded Troll or something

    --
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  5. Re:In 2012... by oakgrove · · Score: 2

    And obviously the EU would like things to stay that way. competition is good.

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  6. Re:When in doubt, go after US companies to look go by Picass0 · · Score: 3, Funny

    Well, to be honest it's not like Britain has any big computer makers. They haven't figured out how to make a PC that leaks oil yet.

  7. A little too late Microsoft by cpu6502 · · Score: 5, Interesting

    " 'we learned recently that weâ(TM)ve missed serving the BCS software to the roughly 28 million PCs running Windows 7 SP1.' Microsoft says it started distributing the BCS software to Windows 7 SP1 machines on 3 July, a couple of business days after discovering the problem."

    If the users have already turned-on their new machines, then they are already PAST the browser choice screen. It is pointless to install it after the fact and Microsoft is in violation of the terms of the lawsuit. Furthermore does anyone really believe it was a "mistake"? Last time I told a cop I made a mistake and thought the green left arrow w/ red stoplight meant "go" instead of stop, he just laughed and gave me a ticket. There's really no room to let Microsoft go, else it sets the precedent that criminals can just say "ooops I made a mistake" and be left free to go.

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    1. Re:A little too late Microsoft by Anonymous Coward · · Score: 2, Informative

      This is the way MSFT used to operate in order to beat down their competition. "Updates" to their OS that "accidentally" broke their competitors' software.

    2. Re:A little too late Microsoft by cpu6502 · · Score: 4, Interesting

      >>>If you fine a company because of a bug in their software this is really not understanding how software development works.

      This isn't a bug. This is leaving-out the installation of a distinct piece of software: the browser select program. It would be equivalent to if Microsoft "forgot" to include Windows Media Player for new Win7 PCs. (Which never happens.)

      It may have been a mistake due to incompetence, but more likely it was down on purpose. Microsoft is only admitting it now because they were caught, else we'd not hear about it.

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    3. Re:A little too late Microsoft by nedlohs · · Score: 2

      Yeah, it'd be like fining a company because a bug in their inventory management and distribution system put rat poison in the breakfast cereal boxes they shipped to supermarkets. That'd show a complete laack of understanding of how distribution works.

    4. Re:A little too late Microsoft by Tom · · Score: 3, Insightful

      If you fine a company because of a bug in their software this is really not understanding how software development works.

      If you don't, then it is really not understanding how companies work, or the law.

      If you went over the speed limit, then you went over the speed limit. Nobody cares why, if it was intentional or if you didn't look at the speedometer. It is your responsibility to not go over the speed limit, and if you did it by mistake then too bad - your mistake, your ticket.

      Same here. Their mistake, their ticket. It really is as simple as that.

      If you deviate from that legal principle by a single inch, then everyone will start to claim "it was a software bug" for everything, because that is how lawyers work - they always include every possible defense that has the slightest chance of being successful.

      Fining them is 100% the correct decision, absolutely no doubt about that.

      --
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    5. Re:A little too late Microsoft by cpu6502 · · Score: 2

      >>>>>Unfortunately, the engineering team responsible for maintenance of this code did not realize that it needed to update the detection logic for the BCS software when Windows 7 SP1 was released last year.
      >>
      >>Sounds believable to me. A mammoth software company where the right hand might not know what the left hand is doing? Plausible, totally plausible.

      About as plausble as Microsoft claiming they didn't mean to block DR-DOS from being installed on Win95 machines. (not.) Really: How can a programmer "forget" to include a whole program? As I said that would be equivalent to them forgetting to include Media Player for Win7 SP1 desktops... it just doesn't happen.

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  8. Apple First by Aqualung812 · · Score: 2, Interesting

    Sure, go after Apple's iOS boot loader lock first, since they have several times the number of devices as Microsoft that are affected by a lock.

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    1. Re:Apple First by JDG1980 · · Score: 2, Insightful

      Sure, go after Apple's iOS boot loader lock first, since they have several times the number of devices as Microsoft that are affected by a lock.

      Microsoft has a monopoly on the desktop. Apple doesn't have a monopoly in any of its market segments, so it doesn't have to play by the same rules. Being a monopolist isn't illegal in and of itself, but it does mean you are subject to more stringent regulations to ensure you aren't using your dominant position to lock out competitors.

      In my opinion, the attempt to force "Metro" down everyone's throat should be considered an anti-competitive act: it's an attempt to leverage MS's existing monopoly on the desktop into the smartphone and tablet space. It will probably fail anyway, but even the attempt should not be permitted.

    2. Re:Apple First by Aqualung812 · · Score: 2

      Re-read my post. I said "iOS", not OSX.

      Microsoft is only doing the boot lock on devices that compete squarely with Apple (tablet and phone), not on the desktop.

      Tell me again how Apple allows me to run my own OS on the iPhone or iPad?

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    3. Re:Apple First by Aqualung812 · · Score: 2

      If you're talking about the lock, you're talking about Microsoft ARM devices, not desktop devices. Microsoft has no monopoly there, and is FAR behind Apple in that market.

      And, http://slashdot.org/comments.pl?sid=2985663&cid=40677977

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    4. Re:Apple First by Man+On+Pink+Corner · · Score: 2

      How is any leveraging occurring? The ARM version of Windows 8 won't run anything written for x86.

    5. Re:Apple First by mystikkman · · Score: 2

      Those aren't locked either. Install iPhone Linux or iDroid. Apple doesn't care if you load another OS on their hardware, they get paid either way.

      Then why does the iDroid wiki page say it's waiting for a boot exploit for the iPhone 4S and the newer iPads? The bootloader is obviously locked.

      http://www.idroidproject.org/wiki/Status

      >they get paid either way.

      They lose on app store and iTunes purchases.

  9. Interesting behavior for bugs. by 140Mandak262Jamuna · · Score: 3, Insightful
    In a Perry Mason novel, (probably The Case of the Ice Cold Hands), the witness in the stand will confess to murder, and the DA Ham Burger would be forced to argue, (because he is charging his sister with that murder), "no you did not!".

    In most cases bugs in your code is usually bad for your business. But Microsoft has bugs that are peculiar in that, it helps the company. It breaks competitor's products from the DR-DOS days or help it avoid compliance with court rulings... You know at some point people are going to say, "this level of incompetence is simply not possible, it must be intentional". And Microsoft will pull a Ham Burger and argue, "No! We are that incompetent!".

    --
    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
    1. Re:Interesting behavior for bugs. by 140Mandak262Jamuna · · Score: 2
      These are recent. Microsoft systematically attacked its competitors with selective bugs. IIS will have bugs that violate MS's own API guidelines and documentation but somehow mysteriously they would not affect IE, but would make Netscape bad and unstable. MS-Office will have bugs in save/restore that will make WordPerfect first and OpenOffice later to fail in reading them right. Initially Word alone would read/write them correctly. It eventually came back to bite their own as^H^H tails because they could not keep the selective disinteroperative bugs affecting only other products. Later days OpenOffice became better in rendering old pre-Word2000 files than Ms-Office itself!

      They took full advantage of open unix file system architecture to mount unix filesystems in windows. Made sure windows filesystems could never be shared/authenticated in unix side. They fought Samba with bugs as much as they did with lawyers. That is how exchange-server came to dominate the authentication servers in corporate IT. The list is endless.

      --
      sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
  10. Euro Mania by westlake · · Score: 3, Interesting

    28 million PCs sold ---

    and no one notices or gives a damn about the missing browser ballot.

    Not a word.

    Not a whisper from Opera.

    Google. Mozilla...

    Until today, Slashdot, Ars Technica, The Register and all the rest have been as silent as the grave.

    1. Re:Euro Mania by PraiseBob · · Score: 2

      The purpose was absolutely to give a leg up to Microsoft's business rivals and competitors. Because Microsoft was convicted of suppressing its business rivals through monopoly abuse. And having a robust marketplace is definitely in the interests of the people when compared to having no choice.

    2. Re:Euro Mania by metacell · · Score: 2

      For one thing, they integrated their own browser into the dominating desktop OS on the market (Windows) and made it impossible for users to uninstall it.

    3. Re:Euro Mania by metacell · · Score: 2

      Plus, Microsoft's license agreement with retailers said they were not allowed to bundle other browsers. That's pretty unambigious anti-competitive behaviour.

  11. Re:So they going to fine Apple too? by cpu6502 · · Score: 3, Informative

    Well..... why do you think Apple approved Opera Mini for use on their iOS devices? I'm sure they were very aware that it was Opera who sued Microsoft (and won), and if Apple turned them down then Opera would sue Apple next for abuse of their dominant cellphone position.

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  12. Re:So they going to fine Apple too? by Baloroth · · Score: 4, Informative

    Then you obviously need to learn how to use Google. Or Wikipedia. Or not, since I just gave you the link. If you are to lazy to click on that: they got fined €860 million for anti-competitive practices, plus had a lot of compliance stuff they also had to do.

    --
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  13. Re:So they going to fine Apple too? by Belial6 · · Score: 4, Funny

    Didn't you hear? Windows doesn't run on computers either. It runs on toys. "Real" computers run things like VMS.

  14. Re:So they going to fine Apple too? by DragonWriter · · Score: 3, Informative

    Apple bundles Safari with every computer sold, last I checked.

    The issue isn't bundling a browser with a computer.

    The issue is leveraging dominant market power in the desktop OS market in the EU in an anticompetitive way in the existing-and-distinct desktop browser market. Something Apple can't do with desktop Safari, since it doesn't have dominant market power in the desktop OS market.

    In fact, I'm pretty sure Safari is the ONLY browser you can use in iOS (everything else is just a reskin).

    iOS isn't even the #1 mobile OS in the EU, much less as dominant in that space as Windows is in the desktop OS market. Market power in the market that is being leveraged is a key factor here.

  15. Sanction wouldn't be about the bug by DragonWriter · · Score: 5, Insightful

    If you fine a company because of a bug in their software this is really not understanding how software development works.

    Any sanctions won't be for "a bug in their software". They will be for:
    1) Violating the agreement they made in place of the fine for the past violation, and
    2) Filing a false declaration of compliance with the agreement in December 2011.

    When you have a legal obligation to do something, and when you declare in an official legal document that you have, in fact, done what you had an obligation to do, well, the fact that you didn't do what you had an obligation to do and hadn't actually verified that you had before you made the legal declaration has consequences.

  16. Re:So they going to fine Apple too? by scot4875 · · Score: 2

    Opera Mini isn't a real web browser. Opera Mobile is. Good try though.

    --Jeremy

    --
    Jesus was a liberal
  17. Not understanding antitrust by DragonWriter · · Score: 3, Informative

    What about iOS and the fact they force safari browser on you. Don't even allow to change it off the default browser? gonna go after apple any time soon? been going over MS for less.

    Antitrust actions are largely about misusing dominant market power. What market power you have in the market you are leveraging is a key factor. Microsoft Windows is quite dominant in the desktop OS market in the EU. Apple iOS isn't even #1, much less dominant, in the mobile OS market in the EU.

    Bundling, as such, isn't the fundametnal issue. Its just the means by which Microsoft was found to have leveraged their dominant position in the desktop OS market.

  18. Meanwhile in another part of the forest ... by Tim+Ward · · Score: 3, Interesting

    ... I get a not-very-computer-literate relative asking me "why TF does my new machine keep on and on asking me if I really want to use IE, despite me keeping on telling it yes I do, and please shut up about it?"

  19. Re:So they going to fine Apple too? by yacc143 · · Score: 3, Informative

    Because to be convicted of monopoly abuse, you need to have a monopoly first.

    MS abused it's monopoly (and monopoly does not need to 100% market share, the term is market dominating position, at least here around) in desktop OSes to force IE on users => e.g. it punished OEMs that preinstalled anything not approved by MS. => they basically managed to get that many normal users associated the IE logo as "the Internet", ... => on a standard Win box you need usually IE at least once to fetch an alternative browser, ...

    In the browser case where MS was fined, one of parts of the settlements was that MS agreed to offer a selection screen where users can select during the PCs setup what browser they want to use, first to educate users that there are alternatives, and second to help diversity in the browser market.

    MS in Win7SP1 just managed to forget that selection screen. It was just a mistake. Well if you are on probation, which MS is, you should really make sure that you follow the imposed sanctions, or you need to pay for your mistakes.

    So if it was just a mistake, than obviously MS has not communicated strongly enough to their employees that their are a convicted company on probation, management error by MS, so accept responsibility, pay a 2-3 digit million euro fine, and everything is fine, that should make you remember not to forget the browser selection screen on your next release, ...

  20. Re:When in doubt, go after US companies to look go by nedlohs · · Score: 4, Informative

    That wouldn't be because you are using mostly US news sources would it? Which you would expect to focus on things involving the US and US companies.

    Like the 900 million euro fine for Saint Gobain, the 300 million euro fine for Air France, and so on. You can count the number of US versus the number of european companies that have had actions taken against them by digging through http://ec.europa.eu/competition/elojade/isef/index.cfm?fuseaction=dsp_result&policy_area_id=1&case_title=

  21. Re:So they going to fine Apple too? by cyber-vandal · · Score: 3, Informative

    Read this and see just how badly behaved Microsoft were. All caps fuckwit.

  22. Re:So they going to fine Apple too? by ThatsMyNick · · Score: 2

    No, the reason Opera Mini was approved was because it did not violate any app store guidelines. If apple truly wanted to avoid litigation, they would approved Opera Mobile. And Opera did not choose to litigate against Apple for not approving Opera Mobile.

  23. Anti-Trust by DragonWriter · · Score: 2

    The EU says M$ has to inform users they can use other browsers. Why?

    Because that's the penalty Microsoft agreed to in place of a larger fine when they were convicted of illegally leveraging their desktop OS monopoly to constrain browser choice.

    Does Ford, Mercedes, BMW or any other car maker have to inform their owner they can use a different radio in the dash?

    Neither Ford, Mercedes, nor BMW has been convicted of illegally leveraging a monopoly in the market for cars (unsurprising, since none of them has anything approaching such a monopoly) to constrain the market for radios and agreed to such notification as part of a negotiated penalty for that conviction, so the situations aren't parallel.

    And why is this not an issue for Apple and Safari?

    The same reason its not an issue for the auto manufacturers.

    Or better yet, why not an issue for Ubuntu?

    The same reason it is not an issue for Apple.