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- Path: sparky!uunet!paladin.american.edu!gatech!usenet.ins.cwru.edu!agate!spool.mu.edu!umn.edu!csus.edu!beach.csulb.edu!sichermn
- From: sichermn@csulb.edu (Jeff Sicherman)
- Subject: Re: FCC will proclaim Microsoft is run by Communists! : )
- Message-ID: <C07392.CyE@csulb.edu>
- Organization: Cal State Long Beach
- References: <1992Dec24.175117.12752@pcatsc.UUCP> <1hn6pkINNg5u@transfer.stratus.com>
- Distribution: na
- Date: Fri, 1 Jan 1993 21:48:38 GMT
- Lines: 59
-
- In article <1hn6pkINNg5u@transfer.stratus.com> jmann@vineland.pubs.stratus.com writes:
- >In article <1992Dec24.175117.12752@pcatsc.UUCP> palmer@pcatsc.UUCP
- >(Doug Palmer) writes:
- >> You are *completely* missing the point. It's not the hardware
- >vendors
- >> who are adversely affected by MicroSoft's predatory practices, but
- >the
- >> competitor OS vendors. In effect, when MicroSoft enters into an
- >agreement
- >> to tie royalty payments to units sold, they are forcing the
- >hardware
- >> vendor to add the price of DOS/Windows to any other bundled
- >operating
- >> system. This is an "unfair" practice in re the OS vendor, not the
- >> hardware vendor. They have effectively increased the cost of all
- >other
- >> operating systems. That's illegal.
- >>
- >
- >The various parts of this paragraph don't hold together. First
- >off, many companies, not just Microsoft, provide volume discounts,
- >which is what I assume you mean by "tie royalty payments to
- >units sold." (Or are you somehow saying that Microsoft should
- >NOT charge for every unit sold?) I'm sure Goodyear gives
- >Ford a discount for buying millions of tires, and that Ford
- >can pay less for tires by putting Goodyear's on all their cars
- >rather than Goodyear's on some, Michelen's on others, and Dunlop's
- >on yet others, since Goodyear will give a far bigger discount if
- >Ford buys all (rather than 25%) of their tires from Goodyear.
- >(Warning to the literal minded: this is a hypothetical example.
- >I don't know if Ford actually uses Goodyear.)
- >
- >Second, you keep using the word "forces." Microsoft is not
- >"forcing" anyone to bundle DOS/Windows. They are just giving them
- >bigger discounts if they do. And, in a market where almost
- >everyone is asking for Windows and DOS, it is probably cheaper
- >for a hardware company to put DOS/Windows on every machine
- >(and load every machine from the same tape) than to customize
- >every machine someone orders.
- >
-
- There are two problems with your analysis, as I know the facts:
-
- 1. As I understand it, MS wants the vendors to pay based upon total
- units sold, not the number of units sold with DOS or Windows on it.
- That sounds to me more like paying for the right to sell it than it
- does purchasing and reselling the product. That constitutes a very
- fine line between commerce and extortion.
-
- 2. MS's scenario virtually prevents the machine seller from bundling
- some other OS without taking a financial hit on the transaction. In
- effect, it is paying the vendor to not use the competitors product
- (because of the higher volumes and discounts associated with the
- agreement). That is a deliberate restraint of trade, not honest competition.
-
-
- --
- Jeff Sicherman
- up the net without a .sig
-