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- Date: Tue, 22 Dec 1992 17:26:53 EST
- From: James Justice <JAY@wvnvm.wvnet.edu>
- Message-ID: <92357.172653JAY@wvnvm.wvnet.edu>
- Newsgroups: comp.os.os2.advocacy
- Subject: Re: ftc and ms
- Distribution: usa
- References: <BzoCzH.Ds0@news.iastate.edu>
- Lines: 37
-
- Computer World December 21,1992
- -------------------------------
- Following complaints from several British hardware manufactures, the UK
- government has moved to investigate Microsoft Corp's DOS licensing practices.
-
- Member of Parliament Nigel Griffiths, the Labour Party's spokesman on
- consumer affairs, confirmed last week that he will pass a dossier on
- Microsoft's UK activities to the Office of Fair Trading (OFT) government
- department. OFT is the UK equivalent of the US Federal Trade Commission,
- which is winding down its own investigation of Microsoft.
-
- Griffiths, who has received complaints from vendors, had previously
- tabled two written question in the House of Commons asking the government
- to investigate Microsoft's supply and charging practices.
-
- Microsoft formerly sold MS-DOS to its UK customers through two channels -
- a high-end licensing scheme for large OEMs and in units of 20, 50, or 100
- to smaller IBM PC clone makers. Late last month, more than 400 UK
- companies received letters inviting them to join the Microsoft Easy
- Distribution plan.
-
- The Microsoft plan commits vendors to paying royalties for every Intel
- Corp. based 80286, 80386. I486, or Pentium PC they ship, whether they are
- DOS machines or not.
-
- If they decide not to sign up, they face paying more for DOS because
- Microsoft will change its UK pricing from pounds sterling to US dollars.
-
- Griffiths likened the arrangement to a scenario in which a company that is
- paying a 5-cent-per-bottle royalty on every Coke sold in the UK is suddenly
- asked to pay 5 cents on every other bottle it sells, even if it contains
- milk or fruit juice.
-
- "This is the back end of a bad monopoly." said Mark Travers, production
- manager at Edinburgh based Datalink Computer Systems. "It's like Microsoft
- wants a percentage of every PC in the world, whether or not you're
- using the company's software on it."
-