Re: bundling (again)

["Lewis A. Mettler" <lmettler@lamlaw.com>]

Joe,

Let's assume even more facts that you have allowed in your suggestion
that some consumers are not harmed by bundling.

Joe Moore wrote:
> 
> 
> 4) Those who choose to purchase the complete bundle because the amount
> paid for the bundle is lower than the cost of the required minimal
> functionality, if purchased separately.
> 

Let's assume that a particular customer wants to only purchase Microsoft
products.

Let's assume that a particular customer also wants an OS and a browser.

Now.  Your argument is that since the bundle costs less than buying the
two products separately, that consumer is not harmed, right?

What if they only have enough money for one of them on the day they
purchase?  Have you not forced them to either borrow money or not buy at
all?  Yes, you have.  You caused harm.

What if they want their browser to work best in conjunction with some
other package (a web server or some other application like a billing
package)?  Have you harmed them?  Yes, you have.  

What if the "required minimal functionality" does not come in any
bundle?  What if you need a browser but not IE?  What if you are not
sure what browser you will need (next week) and you want to wait until
you ascertain your browser requirements?  Are you harmed then?

What if you already own a browser?  Are you still stupid enough to buy
the bundle?  Most consumers are not.  

Is there a difference to you in the "cost of the required minimal
functionality" if you already have some of those applications?  What
percent of new computer users already have a browser?  5%?  2%?  10%? 
Or, do you suppose it is closer to 50-60% or more?  Why are they being
forced to buy the bundle?

Your "exception" above fails in most cases.

If you already have a copy of Word, should you be required to buy
another in order to get Excell?

If you already have a copy of IE, should you be required to buy it yet
again in order to upgrade your OS?

Why do you think Microsoft distributes IE separately and independently
of any OS?  Why do you think that you have to buy IE in order to get an
OS but not the other way around?  Your exception above fails to take
that into account.  If you need a browser and an OS, then you should
rightly be forced to buy both with you buy one of them, right?  That is
the bundling you are referring to.  But Microsoft does not do that. 
They do not require that you always buy both at the same time at all. 
They only require that you always buy IE.

And, as has been pointed out, if you already have a copy of IE, you are
a fool for buying it yet again.

So, even in the above so called exception, consumers are in fact harmed.

All products must be sold separately (or at least that option made
available to the individual buyer) or they are harmed.

-- 
Lewis A. Mettler, Esq.(Attorney and Software Developer)
lmettler@LAMLaw.com
http://www.lamlaw.com/ (detailed review of the Microsoft antitrust
trial)