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Another Underhanded Attempt To Abuse and Capitalize On Their Powers
November 26, 2001
Having been found guilty in class-action claims of price-gouging and abusing its monopolistic powers, Microsoft has proposed settling the more than 100 lawsuits filed against them by donating over $1 billion worth of Microsoft software and computer hardware to 14,000 of the nations poorest schools. The settlement, if approved, would undoubtedly improve the lives of nearly 7 million disadvantaged school children. But upon closer inspection, Microsoft stand to benefit even greater from the deal. Like the marketing genius Microsoft is, they have managed to redirect the focus of attention away from them and onto the poor school children. Their "Oh, think of the children!" rhetoric leads one to believe what a difference the settlement will make "in the lives of millions of school children in some of the most economically disadvantaged schools in the country." What most people, including Microsoft, fail to realize is that the settlement should, first and foremost, teach Microsoft a lesson for abusing its monopolistic powers and crushing the competition. This isn't about helping the kids. This is about punishing Microsoft for the illegal acts of which they've been convicted. Their self-proposed punishment is nothing more than a slap-on-the-wrist. You know it, and they know it. The proposal is simply a bad deal. It is nothing more than a ploy designed to strengthen their monopoly by boosting the company's market share in American schools and after getting the children hooked on Microsoft products at an early age, they will ensure that future generations will continue to use the company's products. Microsoft's $1.1 billion plan "actually consists mostly of donated software, which in real terms costs them nothing." And when the five-year term expires, the schools would then have to pay Microsoft to renew their licenses and upgrade the software. How does this proposed settlement exactly punish Microsoft, then? A possible solution to the problem, whereby the schools and children still stand to benefit, would be to consider Red Hat, Inc.'s proposal. Under their [Red Hat's] proposal, Microsoft would "redirect the money it would have spent on software into purchasing more hardware for the 14,000 poorest school districts. Under the Red Hat proposal, by removing Microsoft's higher-priced software from the settlement equation, Microsoft could provide the school districts with many more computers -- greatly extending the benefits Microsoft seeks to provide school districts with their proposed settlement." By redirecting the value of their proposed software donation, Microsoft would increase the number of computers available from 200,000 to over one million. This translates into an increase in the number of systems per school from approximately 14 to at least 70. And under the Red Hat proposal, Red Hat would also provide free of charge their Linux Operating System, office applications, and unlimited free support. And unlike Microsoft's proposal, Red Hat's would have no time limit or expiration. This solution would thus achieve three goals: improve the quality of education in the nation's poorest schools, punish Microsoft by fining them $1.1 billion, and prevent Microsoft from extending their monopoly. If you don't want to see Microsoft get off with only a slap on the wrist, then I plead with you all to take a few minutes to contact the Attorney Generals listed below and make your feelings/opinions known. They are dedicated to continuing with more stringent anti-trust prosecution. You'll also find a link to a U.S. Department of Justice website which lists other country's that are undertaking anti-trust actions.
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