Tuesday, September 18, 2007

Microsoft gets scolded but Google is around so who cares?

Of Interest to the businessman:

The European Courts ruled against Microsoft, claiming the company held a monopoly through its Windows Media player and that it withheld confidential computer code further restraining competitors from using Microsoft technology with their own. In an effort to avoid a ruling like this, Microsoft provided a line of computers in Europe without the new Vista operating system, so no trade-secrets were needed and computers could still be purchased. That didn't go so well. Nobody wanted second rate systems. So the hammer fell, and Microsoft is being punished. It must provide a Windows Media Player free version of Windows, disclose confidential computer code, and pay some 497 million euros or $689.4 million. The decision also makes it more difficult for Microsoft to put a mix of new features into products. If competitors complain, authorities will listen and enforce.
Ok, well, what's done is done. It's over. One interesting part is how the media approached this story. In the The New York Times, the story's angle focused on how this will affect other technology giants like Apple and Google:

"Software and legal experts said the European ruling might signal problems for companies like Apple, Intel and Qualcomm, whose market dominance in online music downloads, computer chips and mobile phone technology is also being scrutinized by the European Commission."

While in the Financial Times, the actual ruling and Microsoft's grievances felt more attention. An editorial in the FT read:

"Despite the Commission's ruling, Windows Media Player dominates its market, and though Microsoft was forced to provide a version of Windows without Media Player it had little effect because there was no price different between the two."

Basically the FT believes the ruling was a good start but not really the appropriate medicine. That may be true, but to stateside folk, it all seems slightly meaningless. Recently, Google bought a NASA landing strip that wasn't for sale. The search-engine juggernaut also has numerous other projects in virtually every area of innovation -it just announced a moon-landing competition. To those who share a home continent with Apple and Google, it's easy to see which ones are the new young hot shots on the scene and which are the old, impotent ones. The truth is Microsoft is fading away. More and more of its products are second rate compared to Apple and Google. Sure this may be the beginning of a general taming of super-companies but to Americans, it's a slow start. Microsoft has been fighting a losing battle with Apple. When penalties come down on Apple or Google or major telecommunications companies, then we'll talk.

2 comments:

JadedHack said...

Do you think apple and google have become monopolies?

Daniel said...

I think they are truly dangerous in a lot of ways, especially Google.