The Effect of the Appearance of Monopolistic Abuse on the Public & Regulators
RE: " ...people take the current hype and take it as fact, which can lead not only to bad decisions but also to the kind of blind cheerleading that ..."
Your note struck a chord with me. It is worth remembering that most folks out there do not own Microsoft stock and so do not wear the blinders so often in evidence on this board. With respect to the current Department of Justice proceedings, here is what little common ground I think most of us can agree on in relation to how high Microsoft will fly:
1) Either Microsoft does or does not have extra-competitive monopolistic powers in the market place.
2) Either Microsoft can or can not be trusted to regulate itself in light of what extra-competitive powers it possesses.
3) Either Microsoft has infact already abused a monopoly position or it has not.
4) Either Microsoft will be regulated to some degree or it will not.
I think we all agree that regulation will affect how high Microsoft will fly.
Hal
PS: By use of the term "extra-competitive" I do not mean "competing very hard". Quite the opposite. Extra is used in the sense of "beyond", as implied in the word "extradorinary". I mean to suggest power in the market place above and beyond the power conveyed by the blessings of mere competition.
Here is an apparent example of extra-competitive market influence by Microsoft that may, rightly or wrongly, be interpreted as abusive by the non-Microsoft invested public:
"Info-Policy-Notes | News from Consumer Project on Technology
June 3, 1998
David Chun, a student from UCLA, called a dozen PC manufacturers asking if he could buy a PC without buying Microsoft Windows. None would. This is his report.
Exclusive Agreements with PC Manufacturers and Microsoft regarding Operating System software.
My name is David Chun. I am an undergraduate student at UCLA, where I am in the UCLA Center for American Public Policy and Politics. I am working this spring as an intern at the Consumer Project on Technology. On May 25, 1998 through June 3, 1998, I called 12 computer manufacturers, known in the industry as original equipment manufactures (OEMs), attempting to buy computers without a Microsoft Windows operating systems.
These included major brand OEMs Gateway2000, Dell, Micron, IBM, Packard Bell, Hewlett Packard, Toshiba, NEC and Sony, plus three less known brands, Unicent, Umax and Quantex. In each case I told the salespersons that I wanted to purchase a Pentium computer, and I asked the following questions:
---------------begin questions----------
1. Do you offer any other operating systems?
2. Can I buy computers, any models, without buying Windows?
3. If not, why?
4. Can I return Windows and get a refund?
---------------end questions----------
OEMs were asked if they would offer such systems as Linux, FreeBSD, BeOS, Rhaposdy or IBM's OS2. Since no OEM would sell a PC with another operating system, I asked if they would sell a PC "naked," that is, the computer without any OS. In these conversations, I said I was interested in buying a single computer for personal use.
Of the twelve OEMs contacted, none would sell a computer without Microsoft Windows, and none would offer a discount if I returned Windows and asked for a refund. IBM owns OS2, but required consumers to by a Microsoft Windows license, even if the consumer was also purchasing an OS2 license at the same time. [Gateway 2000 owns the rights to the Amiga OS, and when I asked about the availability of the Amiga OS, I was told that it might be available in November 1998.] Several OEMs said their contract with Microsoft required that they sell Windows with each computer. However, some OEMs indicated that if I would place a much larger order, it might be possible to buy PCs without an OS or with a different OS. But this would not be the case for smaller orders.
The following are notes from my calls:
Date: 5/25/98
Vendor: SONY
Salesman: Cam
What I tried to buy: 266 Pentium II, desktop
1. Do you offer any other operating systems? No, we do not. The only operating systems we offer are Windows 95 and Windows NT
2. Can I buy computers, any models, without buying Windows? No, you cannot. We do not sell computers without an operating system. You cannot buy computers without a Microsoft Windows O/S.
3. If not, why? SONY cannot alter or customize O/S. We are under contract with Microsoft.
4. Can I return Windows and get a refund? No, there is no refund if you do not want Windows 95.
Date: 6/3/98
Vendor: DELL
Salesman: Ariel
What I tried to buy: 266 Pentium II
1. Do you offer any other operating systems? Only Windows 95 and Windows NT
2. Can I buy computers, any models, without buying Windows? No, only with a Microsoft OS.
3. If not, why? I believe we have a contract with Microsoft.
4. Can I return Windows and get a refund? No. There is no refund if you refuse to sign the Windows license and return the Windows software.
Date: 5/25/98
Vendor: NEC
Salesman: Tom
What I tried to buy: 266 Pentium II, desktop
1. Do you offer any other operating systems? No, we only offer Microsoft products. We don't offer any dual boot systems, either.
2. Can I buy computers, any models, without buying Windows? No, you cannot.
3. If not, why? Because, when NEC tests computers they check Windows 95 to see if there is anything wrong with the computer. We don't have contracts with other O/S manufacturers.
4. Can I return Windows and get a refund? No, we don't give refunds on Windows' product that come with the computer.
Date: 5/25/98
Vendor: MICRON
Salesman: Sean
What I tried to buy: 266 Pentium II, desktop
1. Do you offer any other operating systems? Only Windows 95 and NT, we don't have other O/S.
2. Can I buy computers, any models, without buying Windows? No, cannot buy computer without Windows product. Can't sell computer without any OS either.
3. If not, why? Micron is under contract with Microsoft.
4. Can I return Windows and get a refund? No, this is not allowed. Windows comes with the computer and not as a option.
Date: 5/25/98
Vendor: GATEWAY 2000
Salesman: Jeremy
What I tried to buy: 266 Pentium II, desktop
1. Do you offer any other operating systems? No, we don't have LINUX, but you could get Windows NT if you pay $99. [Note, in a subsequent call, I was told that Gateway 2000 would release a new version of the Amiga software in November 1998].
2. Can I buy computers, any models, without buying Windows? No, we can't do it because we only offer computers with Windows O/S.
3. If not, why? We are under contract with Microsoft, can't offer any other O/S.
4. Can I return Windows and get a refund? No, we can't do that either. Windows is not an option, therefore, you can't return it for a refund.
Date: 6/3/98
Vendor: Unicent
Salesman: Jamie
What I tried to buy: 266 Pentium II, desktop
1. Do you offer any other operating systems? We offer Windows 95 or Window NT. If you were going to order a whole network, we would consider a different OS, but certainly not for a single computer.
2. Can I buy a computer, any model, without buying Windows? No.
3. If not, why? We have a contract with Microsoft.
4. Can I return Windows and get a refund? No. Even if you refuse to sign the Windows license and return the software, you must pay for it. However, if you buy 5 or more computers, we might be able to do something.
Date: 5/28/98
Vendor: Umax
Salesman: No name
What I tried to buy: 233 Pentium II, desktop
1. Do you offer any other operating systems? Just Windows 95.
2. Can I buy a computer, any model, without buying Windows? No, we don't offer computers without an OS.
3. If not, why? Everything is pre-configured and doesn't change. We can't customize for operating systems.
4. Can I return Windows and get a refund? No, Windows 95 is part of the package and we just don't offer refunds on the Windows O/S that comes with the computer.
Date: 5/28/98
Vendor: Quantex
Salesman: Frank
What I tried to buy: 233 Pentium II, desktop
1. Do you offer any other operating systems? No, we don't. Only Windows 95 or Windows NT
2. Can I buy a computer, any model, without buying Windows? No, you can't. we don't offer computers naked (without an OS) either.
3. If not, why? In order to test the computer before we ship it out we need a O/S system to see if the computers run. We put Windows O/S in to check it out. We don't take it back out.
4. Can I return Windows and get a refund? No, we don't offer any refunds for the O/S that comes with the computer.
Date: June 3, 1998
Vendor: IBM
Salesman: Janet
What I tried to buy: Aptiva 266 AMD desktop
1. Do you offer any other operating systems? No, we only sell the computer with Windows 95. You can buy a copy of OS2, for $199, but the computer comes with Windows 95 in any case, even if you are being OS2.
2. Can I buy a computer, any model, without buying Windows? No, you must buy Microsoft Windows 95. You can buy a copy of OS2, but this is in addition to Windows 95, not as a substitute. Except, however, if you are a big corporate account, and then you could try to negotiate a purchase without buying Microsoft Windows.
3. If not, why? That's just the way it is.
4. Can I return Windows and get a refund? No, we don't give refunds on Windows 95, even if you don't want it or don't use it. It comes pre-installed as part of the computer, and you have to pay for it.
Date: 5/28/98
Vendor: COMP USA PC
Salesman: William
What I tried to buy: 233 Pentium II, desktop
1. Do you offer any other operating systems? No company does. This the standard for computers at any other company.
2. Can I buy a computer, any model, without buying Windows? No, we don't offer other computers without Windows. We don't sell naked computers.
3. If not, why? Anything above and beyond Windows O/S is personal and would have to be the owner's decision to customize his own computer after he purchases it. It is against our policy.
4. Can I return Windows and get a refund? No, you cannot. We don't offer any refunds on OEM loads.
June 3, 1998
Vendor: Packard Bell
Salesman: Jill, with PC Factory Outlet.
What I tried to buy: 266 Pentium II, desktop
1. Do you offer any other operating systems? No we don't. We don't. All we have is Windows 95, that is the only one.
2. Can I buy a computer, any model, without buying Windows? No. Windows 95 has to be included.
3. If not, why? We don't specify systems to customers needs.
4. Can I return Windows and get a refund? No. If you refuse to sign the Windows license, and return the software, you still have to pay for the Windows license.
David Chun
June 3, 1998
saved@ucla.edu
Phone until June 16, 1998
Wk: 202.387.8030, Hm 703.522.9600, ext 417
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A relevant question to be asking here is how do factors like these look to the non-Microsoft owning public and to regulators? HR |
