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Re: EU investigating new complaint about Microsoft

Roy Schestowitz wrote:

> __/ [ 7 ] on Friday 07 July 2006 22:06 \__
> 
>> nessuno@xxxxxxxxxxxxxxxxxxx wrote:
>> 
>>> Quote:
>>> --------------
>>> European Union regulators are "studying" a consumer complaint that
>>> Microsoft Corp. forces computer makers to sell machines that are
>>> preloaded with Windows, excluding other operating systems such as
>>> Linux....
>>> 
>>> The complaint comes as the regulator threatens to fine Microsoft as
>>> much as 2 million euros, or $2.5 million, a day for not complying with
>>> a 2004 antitrust ruling. The commission also has cautioned the company
>>> about bundling products into its new version of Windows, which will be
>>> released next year.
>>> ----------
>>> End quote
>>> 
>>> http://seattlepi.nwsource.com/business/276088_msfteu01.html
>> 
>> 
>> The EU representative of the Commission needs
>> to go back to school and study competition law.
>> 
>> "
>>  In the Wednesday reply, Tradacete said the commission
>>  isn't aware of any obligation for PC makers to sell
>>  their products with Windows.
>> 
>>  PC makers receive rebates for including Windows, Tradacete noted.
>>  
>>  "We suspect" that PC makers' decision to preload Windows is based on
>>  consumer demand, Tradacete wrote. "If this information is confirmed, the
>>  conduct of PC manufacturers would be justified by pure commercial
>>  reasons and may not fall under the provisions of EC competition law."
>> "
>> 
>> If rebate system is illegal and creates a market distortion
>> financed by illegally overcharging existing customers
>> in the software market.
> 
> 
> Overcharging is improbably the key issue, or what's at the very core. The
> issue is that Linux users buy something they do not want and, in the
> process, endorse their 'desire' to buy Windows. It's a cyclic trap.

Overcharging is a major major major consumer issue.
Its for these reasons the EU commission exists.
A German automaker had been fined hundreds of millions of euros
for price fixing issues.

The EU and USA has been known to fine
Korean DRAM makers for selling chips at an equal
price across the world. It may sound fair but it is illegal
since there is shipping costs involved and the korean
consumers have to pay extra to finance that shipping cost.


Windopes are paying extra to finance that windope rebate system.
This is illegal market distortion created by a monopoly
and they need to be fined in the same way as automakers
and the Korean DRAM makers have been treated.


>> Its OK when a rebate is a once in a life time give away from
>> micoshaft's coffers.
>> 
>> But, when the whole market is put on a gravy train that rely continually
>> on overcharging the monopolized micoshaft customer in order
>> to pay rebates, the entire system becomes a fundamental market
>> distortion, and the EU commission are participating in perpetuating
>> the illegal over-charging of EU citizens to pay for rebates.
> 
> 
> Microsoft found a legal loophole perhaps.

No such thing. These matters are inherently based around
creative methods that skips and dances around reporting methods only.
It is the responsibility of the EU commission to
investigate a clear breach of the overal effect and correct
market distortion by interpreting it through competition law.


> Competitiveness in a capitalist
> market should not tolerate such behaviour, especially when one pays for a
> licence, rather than an actual commodity. And that licence has lockins,
> high exit barriers, and inter-person dependencies (through proprietary
> formats). How can anyone be so blind the identify the exploit? With the
> Bush administration, well... I can see that as a lost case... it's all
> corrupted anyway, with interests in profits through taxation of the
> remainder of the world.
> 
> 
>> The EU commission should
>> 
>> 1. Fine micoshaft tripple damages for payment of illegal backhanders
>> through overcharging existing customers, back dated to when the illegal
>> conspiracy began.
>> 
>> 2. Order the price of windopes to be reduced by the same amount
>> that has been overcharged to the consumer. Supervise pricing
>> such that all the lost value the customer has lost has been returned.
>> 
>> 3. Fine those who took the backhanders tripple damages.
>> 
>> This will correct the market distortion by
>> 
>> A. Reducing price to consumers of windopes
>> B. Offer the same level playing field to other PC based
>>    operating system vendors where micoshaft competes
>>    as a monopoly through this illegal rebate system
>>    instead of the true market cost of the product.
>> C. Correct any untennable market positions held by certain hardware
>>    vendors favoured by micoshaft's illegal backhander payment systems
>>    and allow new vendors to compete equally with equal and
>>    fair prices and alternatives when the consumer demands choice.
> 
> 
> I think your solution is, as usual, too radical and unrealistic. Banning
> the use of Windows (boy, the SPAM and DDOS attack level will plummet to 0
> overnight!) is an impossibility. Fining seems like a reasonable option, as
> well as recommendations to people, urging them to upgrade to GNU/Linux.
> You can start with governments and work downwards to businesses and homes.


Banning is not an option even under competition law.
Fining for creating and perpetuating a market distortion is punishable.
I'm sure micoshaft has had plenty of legal advise of the possibilities
of eventually being found guilty of competition law.
They are still however committed to an executive decision to
to risk overcharging customers in order to make a quick buck
and knowing punishment is far away.

 
> Best wishes,
> 
> Roy
> 


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