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Did Microsoft Threaten Linux OEM?

configure   on 09 July 2003 - 12:25 · 15 comments & 2946 views

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If there was any lingering doubt, Massachusetts, the sole state refusing to sign on to a Microsoft Corp.-crafted federal antitrust settlement, has now made it clear that it will not ease up in the pursuit of tougher remedies. The Bay State, which is investigating whether Microsoft already has violated the settlement, set up a Web site and telephone hotline to gather complaints about Microsoft's conduct.

Massachusetts told the court that it is investigating whether Microsoft used illegal means to punish a computer manufacturer for promoting rival operating system Linux, whether it violated an exclusive dealings prohibition, and whether it failed to properly disclose communications protocol information, among other things. The allegations were based on complaints and tips, and have not been proven, the state told the U.S. District Court for the District of Columbia July 3.

Microsoft maintains that it is complying with the federal settlement, which the U.S. District Court for the District of Columbia approved in November, 2002.

In 2000, the Redmond, Wash., software maker was found to have maintained an illegal monopoly in the desktop operating system market. Its illegal conduct included retaliation against original equipment manufacturers that promoted non-Microsoft middleware, namely the Netscape Navigator browser. One of the provisions of the federal settlement is that Microsoft would not punish OEMs for promoting rival products.

News source: eWeek - Did Microsoft Threaten Linux OEM?


Massachusetts is training hotline staff to handle Microsoft complaints and has designated specific staff to coordinate complaint review.

The Bay State lost its last ally in the battle for tougher remedies last month when West Virginia agreed to a $21 million settlement resolving its claims in the federal suit and in a class action suit. The settlement included $1 million in vouchers to West Virginia schools for computer equipment from any manufacturer and $700,000 in general purpose vouchers to be distributed the Office of the West Virginia Attorney General to be distributed to citizens.

Massachusetts complained to the appeals court July 3 that its efforts to monitor compliance with the settlement provisions have been impeded because the settlement does not remedy all conduct found to be illegal and because other states and the Department of Justice have not shared investigative leads. According to Massachusetts, the Justice Department maintains that it cannot coordinate with Massachusetts while it pursues its appeal of the settlement.

"As matters currently stand, Massachusetts is excluded from multistate enforcement discussions, denied access to leads sent to multistate enforcers, and barred from access to information shared by the multistate group regarding the Technical Committee and Microsoft's compliance officers," the state told the court.

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(9 replies) #1 Mr. Black on 09 Jul 2003 - 16:26
More than likely I bet this is true - they did threaten them. This isn't an isolated incident either - many others have been threatened for all kinds of reasons - and punished.
#1.1 JaggedFlame on 09 Jul 2003 - 17:45
You must be psychic, being able to say "they did threaten them" from the following paragraph:

QUOTE
Massachusetts told the court that it is investigating whether Microsoft used illegal means to punish a computer manufacturer for promoting rival operating system Linux, whether it violated an exclusive dealings prohibition, and whether it failed to properly disclose communications protocol information, among other things. The allegations were based on complaints and tips, and have not been proven, the state told the U.S. District Court for the District of Columbia July 3.
#1.2 Starcom826 on 09 Jul 2003 - 17:53
Oh sure, they no proof on the linux thing. They still did threaten computer manufactuers to pull Windows. Finally, something to be proud about my state for.
#1.3 TC17 on 09 Jul 2003 - 18:01
QUOTE (#1.2)
Oh sure, they no proof on the linux thing. They still did threaten computer manufactuers to pull Windows. Finally, something to be proud about my state for.

Unfortunetly there are many Microsoft lovers who visit here that refuse to accept any wrong doing on Microsofts part. Microsoft has a long history of bullying the competition, and its vendors.

Even the online store Tiger Direct said that Microsoft threatened them to only sell Windows software.

People are living in a fantasy world if they think Microsoft is such a great company.
#1.4 Rambo2000 on 09 Jul 2003 - 20:35
Ironicly, it's Microsoft's bullying and trying to close the market to competion thats going to end up making sure they lose the market, thats how it seems to work, and Microsoft can't say Windows is better then Linux if they are doing everything to stop Linux being adopted, if Windows is really better then Microsoft shouldn't fear it and should compeat farely, Microsoft are heading down the same path of boom and bust with the windows market.

Also, Microsoft with SCO's help are giving Linux something it despratly needs, it's helping to promote it so more people know about Linux, almost the same way it happend with Napster and we all know what happend there.
#1.5 JaggedFlame on 09 Jul 2003 - 21:03
QUOTE
Unfortunetly there are many Microsoft lovers who visit here that refuse to accept any wrong doing on Microsofts part. Microsoft has a long history of bullying the competition, and its vendors.


I'm not saying that. It's stupid to think that Microsoft is always going to continue doing what they did in the past, especially with DOJ breathing down their backs. Maybe this happened, but it's foolish to assume it did happen from that one paragraph.

QUOTE
Even the online store Tiger Direct said that Microsoft threatened them to only sell Windows software.


Yes, and so what? Their argument got ripped to shreds considering it wasn't illegal, and that Linux was free. How can you undercut a free product?

QUOTE
Microsoft can't say Windows is better then Linux if they are doing everything to stop Linux being adopted


According to that argument, IBM can't say Linux is better than Windows even though it's doing everything to stop Windows from taking Linux's place.
#1.6 Octol on 10 Jul 2003 - 07:49
QUOTE (#1.2)
Finally, something to be proud about my state for.

What exactly is it that you're proud of? That your state is pissing away millions of dollars of its taxpayers money? That your state Attorney General is advancing his political career at your expense?

That is what all these state lawsuits are all about: "Look at me! I fought the Big Bad Microsoft on your behalf! You can now all live safer, more productive lives thanks to me! And I will continue to fight these murderous software companies if you elect me Governor!"

Well, I'm happy that your state has so successfully eliminated murder, rape, assault, robbery, kidnapping, child abuse, and so on that it can afford to spend millions on building some political hack's career.
#1.7 Rambo2000 on 10 Jul 2003 - 13:35
The problem for Microsoft is that they've lost there vision they used to have, Microsoft when there was a up starting company had a vision to give the best technolgy and to advance computing, but the bigger the company got, the more that vision changed in now where they are trying to protect everything they have even with playing dirty, this is whats bringing Microsoft down, people don't trust them anymore, and ultimately, when people don't trust them, theres only one way they can go and thats down, but that doesn't mean the company will die or anything, it just means they'll be another IBM, a big company but not too much in control of the computer.

Jagged, the problem with that is that Linux and IBM is not doing everything to try and stop the adoption of windows, so that arguement means nothing, Microsoft is trying everything to stop people moving over to Linux, playing dirty, bribeing, and it wont supprise me if they have paid SCO to scare people off, I find it very funny seeing what SCO are doing lately and willing to bet Microsoft are behind it simple because the blame can be put on SCO and not on Microsoft so it doesn't make them look bad.

The truth is, if Windows is better like you and Microsoft keep saying, then tell Microsoft to stop getting desprate with Linux and compeat fair, after all, you keep saying there techonoly is better, if that was the case, they will win all the time because people want the best, but thats not the case, and Microsoft knows this because they are fighting Linux desprately.
#1.8 JaggedFlame on 10 Jul 2003 - 15:41
QUOTE
Jagged, the problem with that is that Linux and IBM is not doing everything to try and stop the adoption of windows


Yeah, right. I see their ads all over the place. They have guys who come to our workplace and try to sell us Linux systems. IBM offers us lucrative deals, the same allegedly "unfair" way Microsoft does. The truth is, it's not "unfair" if everyone's doing it. It's business.

The problem is that you don't know what's going on in the real world.
#1.9 Rambo2000 on 11 Jul 2003 - 15:35
I call that advertizeing Jagged, the Linux deals are better then the Microsoft ones even without them trying to be, beside, you would say things like IBM coming to your work place like that simple because you are pro Microsoft and just like I would with Linux.

I do know whats going on in the real world, you don't want to accept the fact that Microsoft is slowly loseing this, and you know who could be the biggest loses of this?, the countrys that adopt it the slowest, think about it, say all the EU moves to open source software, how much saving would that do to the economy?, not much, but it helps, what Microsoft is doing is helping to hold the US economy back as we all know that Microsoft have more say and power in the US then anywhere else in the world meaning if the US arnt careful, they could get left behind because the fact is, they are moving in big numbers to Linux in Europe and the rest of the world and weather you like it or not, thats whats making sure Linux is here to stay and compeat with Microsoft.
(2 replies) #2 trance on 09 Jul 2003 - 18:02
Look, if MS says, if you also sell Linux with your computers, then we will send our business elsewhere, they should be able to do that. MS can provide their software to whomever they damn well please. If they have stipulations then fine, take it or leave it. These states are just a bunch of crybabies.
#2.1 Starcom826 on 09 Jul 2003 - 19:33
QUOTE
Look, if MS says, if you also sell Linux with your computers, then we will send our business elsewhere, they should be able to do that. MS can provide their software to whomever they damn well please. If they have stipulations then fine, take it or leave it.


True. Thats the basis of a free market. But microsoft has an illegal monopolyt. You well know that any mainstream PC manufactuer would fail if Microsoft pulled Windows, hence the monopoly buisness. A monopoly is a detriment to the free market, and tends to degrade quality. Its about time this gets fixed before it becomes irreversible.
#2.2 JaggedFlame on 09 Jul 2003 - 21:03
QUOTE
But microsoft has an illegal monopolyt.


No, it does not.

QUOTE
A monopoly is a detriment to the free market, and tends to degrade quality.


We have monopolies in plenty of other areas, and they're not ripping the country to shreds. Monopolies are not by definition illegal, and they are certainly not by definition malicious.

Speaking of monopolies, have you checked out AOL/TW lately?

QUOTE
Online Services
---------------
America Online - over 30 million subscribers
CompuServe Interactive Services
AOL Instant Messenger
AOL.com portal
Digital City
AOL Europe
ICQ
The Knot, Inc. - wedding content (8% with QVC 36% and Hummer WinbladFunds 18%)
MapQuest.com - pending regulatory approval
Spinner.com
Winamp
DrKoop.com (10%)
Legend (49% - Internet service in China)
Other
Netscape Communications
Netscape Netcenter portal
AOL MovieFone
iAmaze
Amazon.com (partial)
Quack.com
Streetmail (partial)
Switchboard (6%)

Joint ventures with the following companies
-------------------------------------------
Hughes Electronics Corp.
3Com
eBay
Eastman Kodak Co.
General Motors
VarsityBooks.com
Hewlett-Packard
PurchasePro.com
VeriSign Inc.
Citigroup
Ticketmaster Inc.
Movietickets.com
Homestore
Infospace
American Greetings
TIME WARNER
http://timewarner.com/

Time Life Books
---------------
Time - Life International
Time - Life Education
Time - Life Music
Time - Life AudioBooks
Book-of-the-Month Club
Paperback Book Club
Children's Book-of-the-Month Club
History Book Club
Money Book Club
HomeStyle Books
Crafter's Choice
One Spirit
International
Little, Brown and Company
Bulfinch Press
Back Bay Books
Little, Brown and Company (U.K.)
Warner Books
Warner Vision
The Mysterious Press
Warner Aspect
Warner Treasures
Oxmoor House (subsidiary of Southern Progress Corporation)
Leisure Arts
Sunset Books
TW Kids
Leisure Arts
Time Warner - Cable/DBS

HBO
---
HBO Home Video
HBO Pictures/HBO Showcase
HBO Independent Productions
HBO Downtown Productions
HBO NYC Productions
HBO Animation
HBO Sports
Cinemax
Time Warner Sports
International
HBO Asia
HBO en Espaņol
HBO Ole (with Sony)
HBO Poland (with Sony)
HBO Brasil (with Sony)
HBO Hungary
Cinemax Selecciones
Other Operations
HBO Direct (DBS)
Comedy Central (50% owned with Viacom)
CNN
CNN
CNN/SI
CNN International
CNN en Espaņol
CNN Headline News
CNN Airport Network
CNN fn
CNN Radio
CNN Interactive
Court TV (with Liberty Media)
Time Warner Cable
Road Runner (high speed cable modem to the Internet, with MediaOne Group, Microsoft, and Compaq)
Time Warner Communications (telephone service)
New York City Cable Group (largest cable cluster in world - over 1.1 million)
New York 1 News (24 hour news channel devoted only to NYC)
Time Warner Home Theater (Pay-Per-View)
Time Warner Security (residential and commercial security monitoring)
Kablevision (53.75% - cable television in Hungary)
In Demand (with AT&T, Comcast and Co

Time Warner Inc. - Film & TV Production/Distribution
----------------------------------------------------
Warner Bros.
Warner Bros. Studios
Warner Bros. Television (production)
The WB Television Network
Warner Bros. Television Animation
Hanna - Barbera Cartoons
Telepictures Production
Witt - Thomas Productions
Castle Rock Entertainment
Warner Home Video
Warner Bros. Domestic Pay - TV
Warner Bros. Domestic Television Distribution
Warner Bros. International Television Distribution
The Warner Channel (Latin America, Asia - Pacific, Australia, Germ.)
Warner Bros. International Theaters (owns/operates multiplex theaters in over 12 countries)

Time Warner Inc. - Magazines
----------------------------
Time
Time Asia
Time Atlantic
Time Canada
Time Latin America
Time South Pacific
Time Money
Time For Kids
Fortune
Business 2.0
Life
Sports Illustrated
Sports Illustrated Women/Sport
Sports Illustrated International
SI for Kids
Inside Stuff
Money
Your Company
Your Future
People
Who Weekly (Australian edition)
People en Espaņol
Teen People
Entertainment Weekly
EW Metro
The Ticket
In Style
Southern Living
Progressive Farmer
Southern Accents
Cooking Light
The Parent Group
Parenting
Baby Talk
Baby on the Way
This Old House
Sunset
Sunset Garden Guide
The Health Publishing Group
Health
Hippocrates
Coastal Living
Weight Watchers
Real Simple
Asiaweek (Asian news weekly)
President (Japanese business monthly)
Dancyu (Japanese cooking)
Wallpaper (U.K.)
Field & Stream
Freeze
Golf Magazine
Outdoor Life
Popular Science
Salt Water Sportsman
Ski
Skiing Magazine
Skiing Trade News
SNAP
Snowboard Life
Ride BMX
Today's Homeowner
TransWorld Skateboarding
TransWorld Snowboarding
Verge
Yachting Magazine
Warp
American Express Publishing Corporation (partial ownership/management)
Travel & Leisure
Food & Wine
Your Company
Departures
SkyGuide

Magazines Under Warner Brothers Label
-------------------------------------
DC Comics
Vertigo
Paradox
Milestone
Mad Magazine
Time Warner - Music

Warner Music Group - Recording Labels
-------------------------------------
The Atlantic Group
Atlantic Classics
Atlantic Jazz
Atlantic Nashville
Atlantic Theater
Big Beat
Blackground
Breaking
Igloo
Lava
Mesa/Bluemoon
Modern
1 43
Rhino Records
Elektra Entertainment Group
Elektra
EastWest
Asylum
Elektra/Sire
Warner Brothers Records
Warner Brothers
Warner Nashville
Warner Alliance
Warner Resound
Warner Sunset
Reprise
Reprise Nashville
American Recordings
Giant
Maverick
Revolution
Qwest
Warner Music International
WEA Telegram
East West ZTT
Coalition
CGD East West
China
Continential
DRO East West
Erato
Fazer
Finlandia
Magneoton
MCM
Nonesuch
Teldec
Other Recording Interests
Warner/Chappell Music (publishing company)
WEA Inc. (sales, distribution and manufacturing)
Ivy Hill Corporation (printing and packaging)
Warner Special Products

Joint Ventures
--------------
Columbia House (w/ Sony - direct marketing)
Music Sound Exchange (w/ Sony - direct marketing)
Music Choice and Music Choice Europe (w/ Sony, EMI, General Instrument)
Viva (w/ Sony, Polygram, EMI - German music video channel)
Channel V (w/ Sony, EMI, Bertelsmann, News Corp.)
Heartland Music (50% - direct order of country and gospel music)
MusicNet (w/ RealNetworks, EMI, and BMG)
Time Warner - Online/Other Publishing
Road Runner
Warner Publisher Services
Time Distribution Services
American Family Publishers (50%)
Pathfinder
Africana.com
Time Warner - Merchandise/Retail
Warner Bros. Consumer Products


Theme Parks
-----------
Warner Brothers Recreation Enterprises (owns/operates international theme parks)
Time Warner Inc. - Turner Entertainment

Entertainment Networks
----------------------
TBS Superstation
Turner Network Television (TNT)
Turner South
Cartoon Network
Turner Classic Movies
Cartoon Network in Europe
Cartoon Network in Latin America
TNT & Cartoon Network in Asia/Pacific

Film Production
---------------
New Line Cinema
Fine Line Features
Turner Original Productions

Sports
------
Atlanta Braves
Atlanta Hawks
Atlanta Thrashers
Turner Sports
Good Will Games
Philips Arena

Other Operations
----------------
Turner Learning
CNN Newsroom (daily news program for classrooms)
Turner Adventure Learning (electronic field trips for schools)
Turner Home Satellite
Turner Network Sales


Sorry about the long post, but the point has to be made that owning a bunch of companies and the majority of the market and using competitive pricing is not illegal.
#3 DsnBehind on 09 Jul 2003 - 22:04
Nice homework, JaggedFlame. HeHeHe... that's funny. Yes, AOL does hold a monopoly, but they're not Microsoft so no one says anything. How sad...

QUOTE
...promoted non-Microsoft middleware, namely the Netscape Navigator browser.


Netscape is crap, and Microsoft didn't "promote" any middleware: they simply promoted their own product, as any company does.
#4 Bud on 10 Jul 2003 - 17:53
This horse manure reminds me of the episode of the Simpsons where Home starts the Web based company and Bill Gates "buy him out."

Personally I think if MS did bully some company it was because they were in breach of the agreement the company and MS had agreed on in the first place. But I sometimes wonder if MS hasnt bullied companies like Dell and Gateway into exclusivele shipping the WindowsOS with their systems.

IMO Computers should come with jack squat on them so the consumer isnt force fed certain stuff and let the consumer decide what the hell they want on their system. Or atleast give the customer a option.

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