The Victim Microsoft
July 12, 2000
Found in Reason magazine, under the pen of James
Hankins, Professor of History, Harvard University,
jhankins@fas.harvard.edu "... if an issue is
sufficiently complex, you can lie with impunity.
Neither the public nor the press have the patience
to sort out complicated issues regarding regulations
and legal procedure. You can laugh in the face of the
10 percent of the people who understand the issues if 90
percent of the people dismiss any discussion of them
as the incomprehensible legal jockeying of paid
flacks. If matters seem in danger of coming into
focus, obfuscate and complexify with an air of
injured rectitude."
A thought experiment:
At the dawn of the video age, the consumer technology
giant Megabit invents software for a video recording
and playback system. The invention is, primarily, an
algorithm that can digitize and compress video data
and write it to an optical disk, and that can read the
compressed data and reconstitute the image on your
TV set.
Although Megabit makes a fair bit of money by
licensing its technology to videodisk hardware
manufacturers, it doesn't take much foresight to
realize that while every household in the
TV-mesmerized world is going to want a (as
in *one*) videodisk player that uses Megabit
technology, each of these households is going
to buy (or rent) hundreds of videodisks every
year. In anticipation of this demand and the
turn-of-the-crank revenue it represents, Megabit
buys up as many movie libraries as it can and
starts stuffing Megabit brand videodisks into
the retail channels.
Megabit nearly corners the video market;
but it can't buy *every* library -- and, on closer
look, the quality of the Megabit-encoded picture,
while good enough for the junk your neighbors
watch, makes the cinephile cringe. Furthermore,
licensing the Megabit encoding format is too
expensive for independent studios. Luckily, a
handful of new technology companies come
along that offer smaller, cheaper encryption
schemes and faster, cleaner decoders. The
movie studios are overjoyed, the consumer is
delighted, and videodisk manufacturers, always
looking for another bullet on their features lists,
step up plans to include multiple decoders on
their videodisk players.
Great, says Megabit to the manufacturers, we're all for
competition! Just remember that the Megabit
license says that if you include any other decoder
on your hardware (which you are, of course, free to do),
you have to use the Megabit Decoder Chooser to
switch between them. And, one more thing, do try to
keep in mind that under the terms of the Megabit
Decoder Chooser license, you may only use the
MDC to choose from among Megabit-provided
decoders...
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I once preached peaceful coexistence with Windows.
You may laugh at my expense -- I deserve it.
While I rambled on about peace on the hard disk,
Microsoft made it lethal for a PC OEM to factory-install
BeOS (or Linux, or FreeBSD) next to Windows on the
computer's hard disk. If you, as a PC OEM, don't use
the Windows boot manager or configure it to load
Linux or BeOS, you lose your Windows license and
you're dead. That's why you can't buy a multi-OS
machine from Compaq, Dell, HP or anyone else for
that matter. (Yes, you can buy a Linux laptop from IBM,
but not one that runs the Windows Office applications
you need or that can switch to Linux or BeOS when
you want.)
But what if PC OEMs had always been free to
offer multi-OS PCs? Would it matter? Would we
have seen the emergence of Ausländer-OS
applications that could solve the problems that
Windows doesn't handle well -- little problems
such as stability, configurability, media creation
and rendering, to name a few? Feel free to speculate.
What we know for sure is that Microsoft
treated the PC hardware platform as if it owned it,
and thus hurt consumers, software developers, PC
OEMs, OS competitors, and the industry in general.
That's a layman's definition of abusing a monopoly.
Microsoft has carefully avoided public comment
on this, preferring to portray itself as an innocent
victim. In private, PC OEMs acknowledge the
stranglehold Microsoft has on them --
but, in public, they have to take care of their
shareholders (and their own families).
We welcome conduct remedies if they will prevent
Microsoft from unfairly and illegally abusing their
position of power.