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M$ Monitor: Buying Spree
The Micro$oft Monitor
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Published by NetAction Issue No. 18 November 12, 1997
Repost where appropriate. Copyright and subscription info at end of message.
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In This Issue:
Microsoft's Buying Spree
About the Micro$oft Monitor
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Microsoft's Buying Spree: From MS Word to MS World
In a comprehensive White Paper released today, NetAction reports that
Microsoft has invested an estimated $4-$5 billion in its quest for control
of cyberspace and is acquiring key strategic technologies at a rate of over
one per month.
The report, "From Microsoft Word to Microsoft World: How Microsoft is
Building a Global Monopoly," provides an in-depth look at Microsoft's
strategy for domination of the global information technology industry.
The complete report is available on NetAction's Web site, at:
<http://www.netaction.org/msoft/world/>.
The report was researched and written by Nathan Newman, Project Director for
NetAction's Consumer Choice Campaign <nathan@netaction.org>.
What is most disturbing about Microsoft's buying spree, according to Newman,
is that Internet markets are expected to explode geometrically within the
next few years. Financial analysts are predicting anywhere from $80 billion
to $160 billion in electronic commerce by the year 2000, so the stakes are high.
The White Paper warns that if Microsoft isn't reigned in soon, there is a
very real possibility that it will become an unprecedented financial and
technological colossus, reaching into more markets and industries than any
monopolist has ever aspired to dominate.
NetAction's research documented nearly 50 Internet-related investments and
acquisitions made by Microsoft, most of them within the past 24 months, and
the White Paper traces the company's leveraging of these investments into
dominance of the global information technology industry.
In addition to a detailed description of the steps Microsoft is taking to
gain control of Internet access, content, and commerce, NetAction's report
reveals that the company is spending millions of dollars to subsidize
developer tools and train software developers and other computer
professionals in order to tie them to the Microsoft framework. Microsoft's
tactics range from forging partnerships with commercial and academic
training institutions, to stealing key employees away from its competitors.
The White Paper is one of the most comprehensive examinations to date of
Microsoft's strategy for global dominance. NetAction is distributing copies
to key members of Congress and the Justice Department, as well as to
participants in Ralph Nader's Appraising Microsoft Conference, which takes
place Thursday and Friday in Washington, D.C.
Micro$oft Monitor readers are encouraged to print out the chart of
Microsoft's known Internet-related investments and acquisitions, and forward
it to their representatives in Congress with a brief note urging their
support for Congressional hearings to put consumer concerns on the record.
Although the Senate Judiciary Committee heard testimony regarding
Microsoft's anti-competitive actions at a recent hearing on computer
industry issues, no consumer representatives were among the witnesses
invited to testify.
The chart is at: <http://www.netaction.org/msoft/world/table.html>.
The report includes five recommendations for action by policy makers to
restrain the negative aspects of Microsoft's dominance:
* Require Microsoft to divest its Windows operating system monopoly into a
separate company from the application and Internet divisions, and determine
whether there is a need for divestiture of the Internet division, as well.
* Restrain predation by stopping Microsoft from giving away its Internet
browser.
* Prohibit licensing practices that restrict customer dealings with
Microsoft's competitors, as well as exclusive dealing and tying arrangements
for products.
* Promote processes that support open standards, and defend open standards
established through industry processes from anti-competitive abuse by Microsoft.
* Establish processes to ensure that Internet users can participate in
policy decisions effecting consumer use of the Internet, including
appropriate mechanisms for addressing complaints about product marketing and
the quality and reliability of Internet services.
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About The Micro$oft Monitor
The Micro$oft Monitor is a free electronic newsletter, published as part of
the Consumer Choice Campaign <http://www.netaction.org/msoft/ccc.html>.
NetAction is a national, non-profit organization dedicated to educating the
public, policy makers, and the media about technology-based social and
political issues, and to teaching activists how to use the Internet for
organizing, outreach, and advocacy.
To subscribe to The Micro$oft Monitor, write to: <majordomo@netaction.org>.
The body of the message should state: <subscribe monitor>. To unsubscribe
at any time, send a message to: <majordomo@netaction.org>. The body of the
message should state: <unsubscribe monitor>
NetAction is seeking sponsors to provide financial support for the continued
publication of the Micro$oft Monitor. Sponsors will be acknowledged in the
newsletter and on NetAction's Web site. NetAction is supported by
individual contributions, membership dues and grants.
For more information about contributing to NetAction, or sponsoring the
Micro$oft Monitor, contact Audrie Krause by phone: (415) 775-8674, by
E-mail: <mailto:audrie@netaction.org>, visit the NetAction Web site at:
<http://www.netaction.org>, or write to:
NetAction * 601 Van Ness Ave., No. 631 * San Francisco, CA 94102
To learn more about how activists can use the Internet for grassroots
organizing, outreach, and advocacy, subscribe to NetAction Notes, a free
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Copyright 1997 by NetAction/The Tides Center. All rights reserved.
Material may be reposted or reproduced for non-commercial use provided
NetAction is cited as the source. NetAction is a project of The Tides
Center, a 501(c)(3) non-profit organization.