[Am-info] STATES SEEK MICROSOFT WINDOWS SOURCE CODE

[John Poltorak]

On Fri, Feb 15, 2002 at 09:44:17AM -0500, Sujal Shah wrote:
> On Fri, 2002-02-15 at 02:22, Mitch Stone wrote:
> [SNIP]
> > 
> > Microsoft is caught in a real logical dilemma here. How can they claim 
> > that Windows is one, big trade secret, but at the same time insist that 
> > Windows is also an equal-opportunity operating system -- when only they 
> > really know how it works?
> > 
> > On Thursday, February 14, 2002, at 01:40 PM, Erick Andrews wrote:
> > 
> > "This is the equivalent of demanding of Coke that they turn
> > over the formula," said Andrew Gavil, a professor of antitrust
> > law at Howard University. "This is exactly what Microsoft
> > wanted to avoid."
> > 
> 
> 
> I'd actually say that the premise isn't entirely faulty (though I think
> I'm saying the same thing as Mitch). It *would* be like Coke turning
> over the formula... What makes the coke scenario different is that there
> aren't a multitude of laws that protect coke from people duplicating a
> formula (you can't patent or copyright a recipe).

What makes the scenario entirely different is that Coca Cola is not a 
predatory monopoly. You get the option of buying other Colas - I believe 
Pepsi is still quite popular... Also you are not forced to buy a Coke with 
a KFC, or Big Mac / Whopper. Of course Coke *might* be the only drink 
available but its price is not included with the meal if you don't want 
it. 

In contrast Microsoft virtually have a 100% monopoly of the retail market 
for IBM compatible PCs. They do not need to observe the discipline of the 
marketplace (unlike Coke) and can and do charge exorbitant amounts for 
their software which is factored into the price of new computers so you 
never really get to see how much you pay, but whatever you do pay is not 
optional. You have to pay the Microsoft Tax whether you want the product 
or not! Whatever you say about Coke, its price is broadly in line with its 
competitors because of the marketplace. With Microsoft, where competition 
is forbidden, the price is not determined by demand since even when 
demand for computers plummeted last year, Microsoft sales, not only held 
there own but grew to record levels. That's simply because they can push 
there prices up at will, and no one can do anything about it. 


> Sujal
> 
> >    Mitch Stone
> >    mitch@accidentalexpert.com


-- 
John