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Date: 1998-04-27
Weltweit: Ermittlungen gegen Micro/soft
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q/depesche 98.4.27
Weltweit: Ermittlungen gegen Micro/soft
Wo weltweit welche Untersuchungen der Microsoft/Geschäftspraktiken laufen,
hat die heutige Ausgabe des Microsoft Monitor aufgelistet.
The Micro$oft Monitor, Issue No. 28 April 27,
A Global Perspective on Microsoft
While most attention on Microsoft has been focused on investigations by
the
United States Department of Justice, the reality is that Microsoft is
facing
legal investigations of its predatory and monopolistic practices from
governments around the world. This issue of the Microsoft Monitor will
detail some of those investigations. With over 50% of its sales occurring
outside the United States -- a share that is growing each year -- legal
challenges to Microsoft in other nations are as important as the Justice
Department's investigation here in the United States.
This article was prepared by Nathan Newman, NetAction's Project Director
for
the Consumer Choice Campaign. Contact Nathan with questions or comments.
Email: nathan@netaction.org or <mailto:nathan@netaction.org>
Microsoft's global alliances and deals are as pervasive as they are
because
those foreign sales are much more lucrative for the company. Microsoft
generates about $500,000 in revenue from each employee in the United
States,
but almost $1 million in revenue from every overseas employee. This is a
phenomenal return, and sales are growing 50% a year in places like Africa
&
the Middle East, and doubling each year in countries like China.
This global growth is a crucial part of Microsoft's long-term monopoly
strategy,
so NetAction lauds the investigations by foreign antitrust authorities and
urges the Justice Department to coordinate its investigations with those
other
governments.
===== The European Union
Since last fall, the European Commission -- what the European Union calls
its set of government agencies -- has been paralleling the Justice
Department's
investigations into Microsoft. The European Commission's first area of
concern
were contracts with Internet Service Providers which required exclusive
promotion of Microsoft browsers. In early March, with the U.S. Justice
Department making similar investigations, Microsoft altered its contracts
to
give ISPs the freedom to support alternative browsers.
The European Commission also played an important role in forcing Microsoft
to stop interfering with the development of a key UNIX competitor to its
Windows NT operating system. Back in the 1980s, Microsoft had developed
its
own version of UNIX called Xenix. A part of that code was incorporated
into
a version of UNIX owned by AT&T at the time. When the Santa Cruz
Operation
(SCO) acquired that version of the UNIX operating system in 1995,
Microsoft
used court orders to not only collect royalties on the old code but
prevent
SCO from developing more advanced versions of UNIX that would no longer
use
Microsoft's code.
With Microsoft's legal demands hampering SCO's ability to innovate around
its
operating system, and costing SCO $4 million per year in royalties to
Microsoft, SCO filed a complaint with the European Commission in January
1997. (Microsoft's actions are ironic in light of the company's
complaints
about legal actions restraining its innovation.) The Commission agreed
that
Microsoft's legal actions had "hampered (SCO's) ability to compete with
Microsoft's own products, particularly Windows NT." Before the Commission
took final action, Microsoft, in November, notified the Commission that it
would waive both royalties and requirements that its code be incorporated
in
future versions of UNIX worldwide. This is an important victory in
assuring
that UNIX remains a viable competitor to Microsoft on business machines.
===== Japan
Japan began its investigations of Microsoft later than both the United
States and Europe, but Japan's Fair Trade Commission has made up for it in
the aggressiveness of its efforts. In early January, amid suspicion that
the company was violating anti-monopoly laws, investigators from Japan's
FTC
searched Microsoft's Tokyo offices. With the evidence they collected, the
Fair Trade Commission announced a full scale antitrust investigation of
Microsoft.
Japan's first major concern parallels the U.S. Justice Department's
opposition to Microsoft requiring the "bundling" of the company's Internet
Explorer browser as a requirement for computer manufacturers to license
Windows 95. The Fair Trade Commission has charged Microsoft with unfairly
pressuring those manufacturers.
The Japanese government's second major concern focuses on Microsoft's
bundling of Office software applications. Microsoft is charged with using
the bundling of software to unfairly compete against a Japanese word
processor called Itchitaro. Japan is exploring whether Microsoft made
installation of Microsoft Word and Excel a precondition with some
manufacturers for licensing Windows 95.
===== Brazil
While much of the third world has not had the economic or political clout
to
take on Microsoft, Brazil's Justice Ministry this month opened an
investigation
into Microsoft's Brazilian subsidiary over alleged violations of antitrust
law.
Microsoft's Office suite of applications already dominates 95% of the
Brazilian
market and the newest complaints focus on Microsoft's Money financial
software.
Microsoft has attempted to lock-up the marketplace by giving its Money
software
away to Brazilian banks and bundling it with a general package of software
for
small business. Paiva Piovesan, a local competitor which makes a rival
package
called Finance for Windows, has charged Microsoft with unfair competition,
and
the Justice Department has followed up with its own investigation.
===== Israel
In Israel, the Antitrust Authority is considering declaring Microsoft a
monopoly
under Israel law and subjecting it to new restrictions. Authority
director
David Tadmor sent a letter several months ago to Microsoft and informed it
that
the authority was considering declaring it a monopoly. The effort was
launched
in response to complaints from a number of sources regarding Microsoft's
activities in Israel.
===== Grassroots Global Activism
Even in places where Microsoft has threatened or cajoled support from
local
governments, grassroots activists are raising concerns about Microsoft.
In
the Philippines, activists within that nation's Green movement have
criticized their own government for accepting $1 million in free software
from Microsoft while, at the same time, launching raids on local public
schools to root out software piracy at the behest of Microsoft. Accusing
the government of being bribed, the Philippine Greens have suggested that,
"The government may now hypocritically conduct police raids on others who
continue to do as the government did, copying commercial software."
Microsoft's competitors and local activists around the world have charged
that
Microsoft has used anti-piracy campaigns as part of its anti-competitive
practices in the third world. One example, uncovered by the magazine
Mother
Jones, was the case where Antel, the national telephone company of
Uruguay,
was caught pirating $100,000 of software in 1995 by the Business Software
Alliance. At the time, the BSA was funded by Microsoft, Lotus, Novel and
other
companies. After the BSA launched the legal case against Antel, Microsoft
used
this as leverage to get Antel to exclusively use Microsoft software -- and
then pressured BSA to drop its suit. Lotus and Novell dropped out of the
BSA's foreign operations soon after, with Novell citing this and other
instances of Microsoft abuse of anti-piracy campaigns as a reason.
Many other activists have complained of Microsoft's close collaboration
with
authoritarian governments. In China, Microsoft in 1996 cooperated with
police raids on computer software stores after anti-Beijing phrases were
discovered in Microsoft software produced by Taiwanese contractors.
Microsoft halted sales of its Chinese-language operating system until the
ideological content met with the Chinese government's approval. At least
in the case of ideological censorship, Microsoft seemed quite happy to
accommodate that government's requests for regulation.
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edited by Harkank
published on: 1998-04-27
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