DOJ and US Lawmakers on EU's Decision and My 2 Cents As Well

”The European Commission's order for Microsoft Corp. to ship a version of Windows without the Windows Media Player could stifle innovation and help Microsoft's rivals instead of promoting fair competition, the U.S. Department of Justice's antitrust chief said Wednesday..."The U.S. experience tells us that the best antitrust remedies eliminate impediments to the healthy functioning of competitive markets without hindering successful competitors or imposing burdens on third parties, which may result from the EC's remedy," [1]

“This effort by the commission to address issues that were previously settled in the U.S. courts will undermine the global competitiveness of many U.S. firms, impede American job growth, and impair innovation in many U.S. sectors," Representative Robert Wexler” [2]

The EU commissioner Monti wrote in his statement about the Microsoft decision:

“In the end, I had do decide what was best for competition and consumers in Europe. I believe they will be better served with a decision that creates a strong precedent. It is essential to have a precedent which will establish clear principles for the future conduct of a company with such a strong dominant position in the market.“ [3]

I really don't get this. How are consumers better off having to pay $500 for their PC and then another $500 for software programs to handle every-day functions (such as media playback, web browsing, entertainment, and document creation)? Taking this future, can we expect that from now on every time a new technology comes out that consumers will have to pay for additional products to take advantage of it? So, when speech recognition becomes good enough for every day use, Microsoft won't be able to include speach recognition with the OS, you will have to go buy a copy of “Real-Voice“ to take advantage of it. When biometric security becomes a viable technology, you will have to go out and buy a copy of “Real-Bio“ too. And while you're at it, lets make people go buy a copy of “Real-3D“ to handle all the 3d computations, “Real-Transaction Manager“ for distributed transaction support and “Real-Pain-In-The-Ass“ for all their other daily needs.

Saying that Microsoft including a media player with their OS injures consumers is like saying Ford installing CD players in cars hurts consumers. It is just rediculous. Installing CD players in cars is not only good for consumers but it helps a boatload of others, such as the recording industry, by increasing the adoption rate of CDs. Microsoft including a media player with the OS is good for consumers in the same way, but also is good for the industries that will benefit from digital media distribution (the potential revenues there are HUGE). Nothing prohibits consumers who aren't satisfied with their standard CD player from going out and buying a new one, and nothing prohibits consumers who aren't satsified with their standard media player from going out and buying a new one. However, the simple fact is that the average consumer would much rather just use the free one, because if they had a choice between having to pay for one and not having one at all, they would end up choosing not having one at all, because they just don't have them money. At least with hardware, prices decrease over time, so people eventually switch when the cost is low enough that it no longer seems like a waste of money. However, software packages generally do not decrease too rapidly (if at all) in price as time goes on so they do not benefit from the “I'll just buy it when it is cheap“ mentality. Yah, maybe $20 for a media player isn't too bad, but add that on top of all the regular stuff (like AntiVirus, etc.) and you could very quickly add up hundreds of dollars worth of relatively basic items just to get your computer up to snuff.

Just because an operating system didn't used to contain X functionality and some third party vendor just happens to make a product that provides such functionality, users shouldn't be forced to dish out extra cash to take advantage of it. If we restrict the OS features to what they were in 1990, then software is not going to progress and all our software dev sure as hell is going to be shipped off to India, because creating quality software is going to be just to darn hard. Maybe in 1990 media players didn't make sense as a core OS service, but take a look at what MS has done with the Media Center PC and you can see a perfectly valid reason why media playback at the OS level makes sense (I wish every computer had that functionality out of the box because it is just so darn cool). You might say, “but Media Player is just a shell on top of the basic media services, you should ship the services, but not the shell.“ To which I would reply, “Are you freaking insane? The part of the OS that draws the start menu and all the windows you see popping up on your monitor is 'just a shell' too you dimwitted moron.“ How does the fact that something lights up some pixels on your monitor make it harmful to consumers? Maybe media playback doesn't seem like a core OS component to you, but maybe you just don't listen to enough music or watch enough videos. 20 years ago, graphical Windows and True Type fonts were not something that people would have seen as a core OS component. The OS was just about proving reliable and standard basic services such as file management so that users didn't have to write those complex INT 13h calls themselves and turn a user's hard disk into spagetti. I would contend that for a large number of college students who use their computers for nothing more than downloading songs from Napster, a media player makes a hell of a lot more sense as a core OS component than something like distributed transaction management, which no one seems to be complaining about. Providing as broad a base for application development as possible ensures that as broad a base of consumers can be satisfied.

Sun wants Microsoft to unbundle .NET. Real wants Microsoft to unbundle Media Player. Netscape wants Microsoft to unbundle IE. If everyone has their way users are going to bring home a pretty useless box of metal from BestBuy. Is Microsoft just prohibitted from adding features to the OS? Are they prohibitted from making the OS more useful to consumers? It's not like they are forcing people to upgrade their systems or developers to write code on newer platforms. If you want to run or build software on Windows 3.1, you still can. If you want to run or build software on Windows 95, you still can. But, you probably don't want to, because OS level improvements have made much of the software that you are using today possible, because they have lowered development costs.

[1] http://www.infoworld.com/article/04/03/25/HNcritique_1.html

[2] http://www.infoworld.com/article/04/03/25/HNeudecision%20_1.html

[3] http://news.com.com/2100-1014-5175160.html?tag=nl

10 Comments

  • LOL

    Jesse Ezell

    "Saying that Microsoft including a media player with their OS injures consumers is like saying Ford installing CD players in cars hurts consumers. "

    Right on the point Shannon J Hager



    But to put it even more lightly, It would be equivalent to Ford having 95% market share in cars (well another LOL), and then it starts making CD players and installing them on their cars and saying ripping them off with render the car useless. And after that it starts doing the same thing with tyres. Does not matter its tyres are not as good as say Bridgestone, but now it has a monopoly in all three markets. Now replace Ford with MS and CD player with browser and tyre with Media Player.



    PS: Jesse, at a personal level I also do not like Real. It is full of c***. I use Winamp and mplayer2 with the newer codecs installed.



    RJ

  • Oh, btw, I think this issue will be gone with Longhorn because the media will be a part of the OS. It isn't at the moment, it is just another thing added on. Microsoft lying about that certainly didn't help them in court.

  • RJ,



    I would argue that consumers are not being hurt at all by Microsoft's actions, and that Microsoft did not bundle the software to stiffle innovation. Quite to the contrary, the windows media player stuff that has come out of MS has had plenty of innovation.

  • I disagree with your interpretation of the EU's argument. They were concerned with MS tying Media Player to Windows. Not "including with", but "tying to". If simply "including with" was wrong or illegal, then the Commission would not allow that to happen. You can see that the Commission definitely allows MS to continue to sell Windows with Media Player included, but they now want MS to also allow a version without Media Player. The is the correction to the problem they saw: the impossibility of getting Windows without Media Player. Nowhere does the Commission indicate that simply "including" Media Player is illegal. However, they use the word "tying" and many lazy journalists have simplified that to "bundling" and even to "including" when the Commission obviously did not mean that.

    The proof of this is obvious. If "including" Media Player were illegal, then it would still be illegal tomorrow. This sentence, from the Commission's press release, makes it obvious that the Commission doesn't think that "including" is illegal:



    "Microsoft retains the right to offer a version of its Windows client PC operating system product with WMP."



    If the EU did think that "including" WMP with Windows was illegal, they would not say that MS had that right and gets to retain that right. If the EU had said that "including" was illegal, I would agree with you on all on almost everything you've said.



  • TC,

    The argument that media player is bad because you can't remove it is not something that makes sense. You can't remove Internet Connection Firewall. It is definately eating away at market share of people providing firewall software (and more so as it gets beefed up). Do this mean that ICF should be removed? Should Microsoft be barred from building anti-virus software into the OS like they are planning on doing?



    With IE, Microsoft was concerned that Netscape might render the operating system useless, so they really had reason to compete hard core against them. And the truth is that they did compete and they did develop a kick ass browser compared to what Netscape had around the time IE 5.0 came out. This competition was a good thing, IMO. IE has stagnated, because it is no longer a viable technology for the kinds of apps that people are wanting to develop. The HTML client world is going to fade away, to be replaced by Rich Clients and Smart Clients, and this is where Microsoft is now focusing their efforts. This has absolutely nothing to do with them winning the "browser war." The war ended on its own.



  • TC,



    MS never said you couldn't replace it, they just said uninstalling it would break certain OS features. This is especially evident in the media center edition of XP, which really could not function without WMP integration. Media Center PCs are still a little out of the price range of the average user, but as the cost for the required hardware goes down, you can definately expect to see Media Center Edition features making it into the mainstream OS, which would be very good for consumers, unless the EU has its way and stiffles the innovation that is happening over in Redmond.



    Sounds to me like you've never worked on a large scale software project. It costs a ton more money to develop things when you are going to allow swappable providers. Microsoft could make everything in the OS swappable if they really wanted, but the price of the OS would have to go up significantly in order for that to happen. With Microsoft facing heavy competition from Linux, that is the last thing they need.

  • I really have a problem with this statement:



    "Sounds to me like you've never worked on a large scale software project. It costs a ton more money to develop things when you are going to allow swappable providers. Microsoft could make everything in the OS swappable if they really wanted, but the price of the OS would have to go up significantly in order for that to happen. With Microsoft facing heavy competition from Linux, that is the last thing they need."



    Having worked on a number of projects large and small, it has almost always been the case that NOT making things swappable was far more costly in both time and money, at least in the mid to long run. Why? At some point you probably are going to have to "ear your own dog food" and when the time comes you can't just swap providers, but you have to modify or swap the consumer too. This is expecially true on large projects where different teams are producing the service consumer and supplier(s). Without pluggability you may not be able to rev your "Media Player" without revving the shell, kernel, and who knows what else.

  • Sounds like your products must be pretty insecure or not quite as complex as what I generally think of as a large scale project. There is a HUGE difference between standard OO techniques that technically allow a provider to be swapped and supporting multiple swappable providers as an official feature. If you don't realize this, I'm not even going to waste my time explaining because you are so far off base that it would be pointless.

  • PS: this is the reason modern OO languages have the "sealed" keyword. It is just common knowledge.

  • It amazes me the immaturity that people can have.



    Jesse, do you talk to everyone the way you talk to these people? They seem very smart and have intelligent arguments. This is a prime example of there is no Black and White "RIGHT" answer... so everyone's opinions should be RESPECTED. RJ even had to make a comment to you about "ground rules".



    Jesse, you are smart and have good opinions. There are millions of smart people who disagree with you. Will you be rude and condescending to all of them too? Grow up!!





    Now for my thoughts on the issue......

    I definitely believe that MS leveraging the OS to put more software should not be done; hence, I agree with the laws that make it illegal. Jesse has some good points about "value" to consumers in the overall OS package. IMHO, I think the model that Linux distros have used could possibly be an applicable solution to this debate. MS is an OS company at its roots. Why not have MS supply only the OS part and have other companies supply the enduser packaging that would include utilities, essential software, etc. There could be many companies or OEMs all doing that..... In fact, you are probably thinking that companies like Dell already do something like that. Well, it could be more widespread and better implemented if MS went along with it and changed their pricing model to adapt to this model.



    Now, I will be the first to admit that I have not thought through all the details (pros and cons) of how this would be implemented. I literally just thought of it while reading the posts and had the thought of "why not?", so dont rip the idea to pieces to make yourself feel better about your own intelligence.

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