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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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