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Japan hits Microsoft with antitrust warning

malebolgia   on 13 July 2004 - 14:58 · 25 comments & 2332 views

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Japan's antitrust regulators continue the monthly tradition of suing the software giant Microsoft. Today Japan accused Microsoft of unfair business practices. Unlike the European Union this lawsuit doesn't carry a heavy fine. According to News.com "Japan's Fair Trade Commission said Microsoft should scrap a provision in its licensing contracts with PC makers that prevents them from filing patent infringement suits if they find Microsoft's Windows software contains features similar to their own technology."

Microsoft on Tuesday received a warning from Japan's antitrust regulators about unfair business practices, but the decision did not carry the heavy fines the software giant was given in Europe.

Japan's Fair Trade Commission said Microsoft should scrap a provision in its licensing contracts with PC makers that prevents them from filing patent infringement suits if they find Microsoft's Windows software contains features similar to their own technology. "There is a high probability that the provision will discourage PC makers from developing their own technology," said Toshihiro Hara, director of the First Special Investigation division at Japan's Fair Trade Commission.

A Microsoft official said the company was implementing a plan to drop the provision in new contracts worldwide, but it was not known whether that would be enough to satisfy the trade watchdog, which raided the offices of Microsoft's Japan unit in February. The ruling is a slap on the wrist compared with the record fine from European regulators and a string of class-action lawsuits in the United States saying Microsoft used its monopoly in the PC operating systems market to overcharge customers for software.

News source: C|Net News.com



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(3 replies) #1 Ivand on 13 Jul 2004 - 16:30
Oh not another.. MS will be in bakrupt in five years if this keeps going and going
#1.1 C_Guy on 13 Jul 2004 - 17:02
No kidding. Imagine what Microsoft could do with all the money they are forced to waste on these ridiculous lawsuits.
#1.2 GamblerFEXonlin on 13 Jul 2004 - 19:32
says the microsoft sheep who love high OS prices and WPA ass-shafting.

this might explain why some critical security holes take so long to fix.

Also WMP is not one of MS' strong points. It's a very generic sort of wrapper around
the very generic DirectShow ActiveX control. Overflow a buffer in there and you
could well inject code running as LOCALSYSTEM

of course, Windows is "just fine."

Last edited by 962 on 13 Jul 2004 - 19:38
#1.3 C_Guy on 13 Jul 2004 - 21:10
What can I say? You get what you pay for. If Users are capable of keeping their systems up to date the risk of getting attacked is very low and Microsoft continues to make the process easier for those who don't know how.

I might suggest that if you don't like Windows or can't afford it, don't buy it and allow the market to decide if Windows is "just fine". No one is making you use it.
(1 reply) #2 Explicative on 13 Jul 2004 - 17:09
You know, when just about every major industrialized country has brought independent antitrust actions against a company, perhaps it's time to consider that this company is monopolistic in nature.
#2.1 Oserus on 13 Jul 2004 - 17:26
Perhaps it's more time to review our laws to stop letting these people think that just because a company is big and sucessful that they are an easy target of cash sanctioned by the courts.

Anyway, let's review... these companies signed these contracts willingly, agreeing to the consessions to Microsoft in exchange for a greatly reduced price. In no case has it even been sugested, much less shown, that any of these companies would have been unable to acquire the software without agreeing to the consessions. Albeit, they would have had to pay the same retail price the rest of us are forced to pay, but that's what you pay when you want it without the strings. The only people I see to blame in these cases are the resellers themselves for being doubly greedy, first by wanting to make a huge markup on Microsoft's products, and now the want the same profit without paying the piper.
(1 reply) #3 betasp on 13 Jul 2004 - 17:34

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QUOTE
Perhaps it's more time to review our laws to stop letting these people think that just because a company is big and sucessful that they are an easy target of cash sanctioned by the courts.

Anyway, let's review... these companies signed these contracts willingly, agreeing to the consessions to Microsoft in exchange for a greatly reduced price. In no case has it even been sugested, much less shown, that any of these companies would have been unable to acquire the software without agreeing to the consessions. Albeit, they would have had to pay the same retail price the rest of us are forced to pay, but that's what you pay when you want it without the strings. The only people I see to blame in these cases are the resellers themselves for being doubly greedy, first by wanting to make a huge markup on Microsoft's products, and now the want the same profit without paying the piper.


Do you actually think it is that cut and dry? Please read this Link. It should give you most of the facts about the MS monopoly you did not know. I tihnk it explains it all.
#3.1 Oserus on 13 Jul 2004 - 21:29
Nice link. It doesn't refute my earlier statement, though. My point was that no one forced these people to sign the contracts. Microsoft may not play nice, but no one forces people to play with them. From what I've read, Microsoft competed in the examples the author gave by either building a better product (Media Player), by just not helping thier competitor (Netscape), or by just letting thier competitor strangle themselves (IBM.) In all the cases I've heard except for where they stole code (and they were punished for those actions) I don't see where their actions would be considered illegal or even out of line for business.

(2 replies) #4 kirk26 on 13 Jul 2004 - 18:31
Death to Japan!
#4.1 CheeseCow on 13 Jul 2004 - 18:40
Well you had better get your behind in gear and get them; because japanese brands are the most exported in the world, and their NRE is rising.

I don't mind because I like anime and I like Sony. Except their MP3 players (which doesn't play MP3s at all).
#4.2 kirk26 on 13 Jul 2004 - 18:48
Your right, just slowly torture them.
(3 replies) #5 CheeseCow on 13 Jul 2004 - 18:37
It is very hard when you are such a large company, and has such a large market share. In order to keep competition working, the Fair Trade commisions need to extremely aware, because Microsoft has the means to obliterate almost all competition.

But of course the problem should have been adressed sooner, now the market is close to non-working because of Microsoft dominance. I tried walking into a computer store and asking if I could run one of their machines with a different OS; all I got back was a silly stare and a question of why I would want Windows 2000 or ME when the machine came with Windows XP.
#5.1 GamblerFEXonlin on 13 Jul 2004 - 19:47
You mean the way they ass-shafted DR-DOS and IBMs OS/2, and not just bundled Internet Explorer to the OS but also gave it out free with every ISP's setup-CD?

as long as M$ is in charge, IE will be strongly bound to windows, now if only Linux would get even more userfriendly and more software and hardware supported.

dont be afraid, think of a Windows that you can tweak if you wanto, and remove all the bloat you dont need. Think of a reinstall just take 5 minutes, and all your settings and programs dont need to be reinstalled cus they reside in the default d:useros_settings.ini

all but those who require additional libraries, but those can you slip-stream into your WinLux installation ISO.
#5.2 C_Guy on 13 Jul 2004 - 21:18
IE isn't tightly bound to Windows, it is a component of Windows.

Allowing Users to "tweak" Windows and remove bloat (not that there is any) from an Operating System would lead to instability, especially since the majority of Windows Users wouldn't know what they were doing.
#5.3 betasp on 14 Jul 2004 - 01:15
QUOTE
IE isn't tightly bound to Windows, it is a component of Windows.


Not according to MS. "Microsoft replies that it offers Internet Explorer as an integrated part of the Windows 95 operating system and notes that the 1995 settlement only says that consumers shall not be be "force fed" software because of Microsoft's supposed monopoly power. "
(6 replies) #6 T1Pimp on 13 Jul 2004 - 20:28
Everybody brings up IE as the example of M$ being a monopoly. Their attack on DRDos or Stacker. THOSE were examples. They flat out coded MSDos so that stacker wouldn't work right... THAT is wrong. Recognizing that a URL and a regular document should be able to be accessed from the same "browser" (Explorer... Internet Explorer... ever notice how you can type a URL or a file path into either and open a document?) is a good interface design decision, NOT an example of a monopoly. You could still CHOSE to use Netscape.

I also think that MS should not HAVE to disclose their API's. It's THEIR OS. Yes they can make their stuff work better, it's THEIR operating system. They should have first dibs at writing cool code against it. If Ford comes up with a butt kicking stereo implementation and only puts it in Ford Mustangs... other auto manufacturers or other head unit manufacturers don't come bellyaching that Ford is a monopoly because they didn't tell the head unit manufacturers how to do it too.
#6.1 betasp on 13 Jul 2004 - 21:06
You obviously do not have a firm understanding of what makes a free market tick and how monopolies can hurt such a free market. Please read this Link. It shows a few examples of how Microsoft abused its monopoly and, in essense, took away peoples ability to CHOOSE.
#6.2 C_Guy on 13 Jul 2004 - 21:25
The key that most people seem unable to remember is that computer manufacturers, software producers, and consumers all have free will and free choice. If Microsoft makes an offer, it can be rejected. If they make a threat, it can be ignored. Windows didn't gain popularity because Microsoft crammed it down people's throats... it gained popularity because consumers freely and willingly chose to purchase it. Just like Netscape. Consumers could choose to purchase/download that browser or they could choose to use a new Windows innovation called Internet Explorer.

Microsoft is an aggressive player in the marketplace. Just look how many comanies are whining or complaining because they aren't up to the challenge. Look at Netscape, what did they do to combat Microsoft's strategy? Not much. Look at RealPlayer. They still have market share because Windows Media Player (WMP) can't play their content and some websites prefer to provide Real Audio content. They're still in the game. Look at Mozilla/Firefox/Thunderbird. They are offering competitive products and some consumers are using them instead of Microsoft products, as that is their choice.

Where is everyone else? They aren't thinking, they aren't innovating, they aren't in there fighting for market share... they're calling their lawyers.

Consumers have always had their free will to choose. Don't let anyone tell you any different.
#6.3 Oserus on 13 Jul 2004 - 21:44
QUOTE
It shows a few examples of how Microsoft abused its monopoly and, in essense, took away peoples ability to CHOOSE.


No where in that atricle does it show any end customers who where even slightly inconvenienced. Customers have and have always had choices. Most of them have chosen Microsoft willingly. (At no time during Microsoft's history has there been less then two choices in operating systems alone.)
#6.4 betasp on 14 Jul 2004 - 00:12
QUOTE
No where in that atricle does it show any end customers who where even slightly inconvenienced. Customers have and have always had choices. Most of them have chosen Microsoft willingly. (At no time during Microsoft's history has there been less then two choices in operating systems alone.)


Antitrust laws are created not just to protect consumers, but to keep pushing for innovation and to create competition. And truthfully, during the tranistion to Win 95 and when companies began offering internet access to its employees, most people only knew IE existed. They were not aware of any competition, because OEMs were not allowed to install it onto computers they shipped and keep the pricing they had in place with MS. In turn, they got an inferior and insecure product.
#6.5 betasp on 14 Jul 2004 - 00:14
QUOTE
The key that most people seem unable to remember is that computer manufacturers, software producers, and consumers all have free will and free choice.


No companies do not have free choice. Companies exist to maximize the return for its shareholders (Business 101). In order to maximize earning, they had to cut deals that stifled choice and innovation.
#6.6 Oserus on 14 Jul 2004 - 01:59
Remind me to thank the gocernment for thier support when I buy my next OS and have to turn around and buy a web browser since wihtout the included web browser in Windows I couldn't download any alternatives.... yeah, I'll be REALLY happy that the big evil empire was stopped from trying to give me something for free then and enjoy my new found freedom of choice...

(Sorry, sarcasm mode off now)

I do find it funny though, everyone keeps talking about freedm of choice on one hand, yet they do not give the consumer enough respect to think that any of them are smart enough download whatever browser replacement they want if they are dis-satisfied with using Internet Explorer.
#7 chacho on 13 Jul 2004 - 22:23
QUOTE
Japan's antitrust regulators continue the monthly tradition of suing the software giant Microsoft.


(1 reply) #8 tommie on 14 Jul 2004 - 01:11
Greeeeeed.
#8.1 The Grasshopper on 14 Jul 2004 - 07:53
if it wasnt for windows no one would be on the internet...well not no one but damn near everyone...including me....anyway to get a dollar instead of earning it seems the new norm...haters....all of em.
when linux distro's get as big as microsoft, they to will be stung by the greed bug.

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