Response to Dell's March 27, 1998 letter on non-MS OS choices

[James Love <love@cptech.org>]

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Info-Policy-Notes | News from Consumer Project on Technology
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June 8, 1998

-   This is a June 8, 1998 Letter from Ralph and 
    James Love to Michael Dell, asking that he 
    "reconsider Dell's practices and to fight 
    for the right for your consumers to make 
    real choices regarding the software systems they 
    want to run on Dell computers."  Responds to 
    a May 27, 1998 letter by T.R. Reid (Senior 
    Manager of Dell Corporate Public Relations)
    to Ralph Nader  and James Love.  Mr. Reid's 
    letter was a reply to a March 9, 1998 letter 
    asking Dell to offer consumers the opportunity
    to buy a computer with non Microsoft 
    operating systems.

(http://www.essential.org/antitrust/ms/mdelljun8.html)

                     Ralph Nader
                     P.O. Box 19312
                     Washington, DC 20036
                     Ralph@essential.org

                     James Love
                     Consumer Project on Technology
                     P.O. Box 19367, Washington, DC 20036
                     202.387.8030
                     http://www.cptech.org
                     love@cptech.org
 
June 8, 1998

Michael Dell 
Chairman and Chief Executive Officer 
Dell Computer Corporation 
One Dell Way 
Round Rock, TX  78682 
Fax 512 728 3653 

Dear Mr. Dell:

	We are writing to follow up our letter of March 9, 1998, where we asked
you to offer Dell customers the choice of buying a Dell computer with or
without buying Microsoft Windows.  We are attaching a May 27, 1998
letter we just received from T.R. Reid, the Senior Manager of Dell
Corporate Public Relations.   In that letter, Mr. Reid asserted that
Dell customers can request a Dell computer with a non-Microsoft
operating system:

"Dell can and does accommodate such requests when doing so is worthwhile
to the customer, through a program in which Dell factory-loads software
applications as computer systems are being built and tested."

	In fact, since May 27, 1998, we contacted Dell three times to ask if it
was possible for a consumer to buy a Dell computer without buying
Microsoft Windows.  In each case, we were told that a person buying a
single computer could not buy a Dell computer without purchasing
Windows.  Apparently Dell is willing to consider such requests for some
very large corporate accounts, but not for individuals or even most
small businesses or non-profit organizations.

	We were specifically told that Dell would not (a) sell a Dell computer
with a non-Microsoft OS or (b) sell a computer without any OS.  On two
occasions the Dell sales agent said that Dell was required by its
contract with Microsoft to sell Microsoft Windows with every Dell
computer[1].

Moreover, the Dell sales staff told us that if  we refused to agree to
the Microsoft End User License Agreement (EULA), and we returned the
license and the software to Dell, we would not receive any refund.  This
appears to be contrary to the terms of the EULA that appears in the
Windows 95 help files, which reads in part:

      IMPORTANT-READ CAREFULLY: This End-User 
      License Agreement ("EULA") is a legal 
      agreement between you (either an individual 
      or a single entity) and the manufacturer 
      ("PC Manufacturer") of the computer system 
      ("COMPUTER") with which you acquired the 
      Microsoft software product(s) identified 
      above ("SOFTWARE PRODUCT" or "SOFTWARE").   
      . . . 

      By installing, copying or otherwise using 
      the SOFTWARE PRODUCT, you agree to be bound 
      by the terms of this EULA.  If you do not 
      agree to the terms of this EULA, PC 
      Manufacturer and Microsoft are unwilling 
      to license the SOFTWARE PRODUCT to you.  
      In such event, you may not use or copy 
      the SOFTWARE PRODUCT, and you should 
      promptly contact PC Manufacturer for 
      instructions on return of the unused 
      product(s) for a refund.


	As you should know, consumers may have many reasons for not wanting to
purchase Microsoft Windows software.  They may want to install
alternative operating systems, including free operating systems such as
GNU/Linux or FreeBSD, or non-Microsoft proprietary systems such as BeOS,
Rhapsody or OS2, or they may be buying a replacement computer and
already own a license for Microsoft Windows.  

	Dell's policy of forcing consumers to buy Microsoft Windows harms
consumers, by denying them the opportunity to spend their money on
alternatives, or even to save money and use software they already own.

	In the next three years we expect to see the continued development of
several new or improved non-Microsoft operating systems.  If Microsoft
can use its dominant market position to force consumers to buy a Windows
OS with every new computer, consumers will paying a "tax" to Microsoft,
even if they choose to use a non-Microsoft product.

	Moreover, consumers will not have the opportunity to buy non-Microsoft
operating systems pre-installed on a computer.  This lack of opportunity
is major disincentive for consumers who are considering trying a new OS,
both because of the difficulty of installation, and the uncertainty
concerning the availability of drivers for hardware components of the
computer.

	We urge you to reconsider Dell's practices, and to fight for the right
for your consumers to make real choices regarding the software systems
they want to run on Dell computers.


Sincerely,


Sincerely,

/s/   

Ralph Nader

/s/

James Love


------begin footnote-----------
In addition to calling the Dell sales staff,  our staff contacted eleven
other OEMs, and received similar responses.  None would sell a PC unless
the customer purchased Microsoft Windows, and none would provide the
consumer a refund if the consumer did not agree to the Microsoft license
and returned the Windows software to the OEM.
(http://www.essential.org/antitrust/ms/jun3survey.html)
------end footnote-----------


--------------T.R. Reid's May 27, 1998 letter ----------
May 27, 1998

Ralph Nader
P.O. Box 19312
Washington, DC 20036

James Love
Consumer Project on Technology
P.O. Box 19367
Washington, DC 20036

Meesr. Nader and Love:

Michael Dell has received your letter regarding alternative operating
systems for personal computers, and I am responding on his behalf.

Dell Computer Corporation has always endorsed and worked toward a
computing environment characterized by open industry standards.  We
believe that such standards have simplified the development of computer
products and services, reduced costs for customers and manufacturers,
and made computers more accessible for both businesses and individuals. 
Open standards are particularly important to the corporate and
institutional customers who account for the vast majority of Dell's
sale.

Within that environment, the products and services Dell features are
based on what customers indicate is important to them when they select a
computer-systems supplier.  When it comes to operating systems, many
Dell customers ask for one by name, while others do not.  In either
case, our experience is that virtually all customers expect us to ship
their computers with a Windows operating system from Microsoft Corp. 

Requests for alternative operating systems are extremely rare today, and
typically are not made in volumes sufficient to offset the cost of
validating systems on our product platforms.  Nonetheless, Dell can and
does accommodate such requests when doing so is worthwhile to the
customer, through a program in which Dell factory-loads software
applications as computer systems are being built and tested.  

We will continue to use the knowledge we gain from customers-we have
many thousands of direct contracts with customers everyday-to shape the
way we design, build and ship Dell computer systems.  As our customers'
needs evolve, so will our product and service offerings.

Best regards.


T.R. Reid
Senior Manager,
Corporate Public Relations




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