Microsoft and the courts

According to the news from Reuters, the EU is investigating whether Microsoft is in violation of anti-trust rules for blocking non-MS browsers from having fill access to the Windows8 API.

http://in.reuters.com/article/2012/07/18/eu-microsoft-browser-idINL6E8IIALJ20120718

 Here’s a prediction.
Microsoft will say, basically, “It doesn’t matter, we’re not a monopoly anymore.”

To prove that, they’re argue that Windows8 is not a PC operating system, but an OS for PC’s, phones, Xboxes, notepads and greeting cards that play music when you open them. Since, they will say, Microsoft is getting walloped in non-PC devices, they don’t count as a monopoly. It’s analogous, they will say, to saying that Toyota has a monopoly on cars because it sells more hybrids. The PC, they will argue, is only one part of the target market for Windows8, in the same way that the Prius is only one target for windshields.

 Microsoft has a lot of reasons to push Windows8. They seriously have fallen behind in their business strategy. But one of the key reasons, I’m guessing, is that by creating a “one OS to rule them all” platform, they create a legal hole to crawl into.

 For years, they’ve been a monopoly (as defined by law, anyway) and they’ve made a zillion dollars. But they’ve also paid billions in fines for breaking anti-trust laws. If they can convince the courts that Windows8 combines markets the way Toyota combines car styles, they can still keep their current markets and profits without the annoying billions of dollars in fines they face all the time. To them, it must seem like a huge win.

Have your cake + eat it = no more anti-trust.

Personally, I think their argument is actually decent and the courts may go for it. I also think we’ll see more restrictions and modifications to Windows8 to make it better fit the model and support the legal argument. I think that’s actually their hidden reason for forcing PC users to use the Metro start screen. And to that end, ultra-books are a Godsend for Redmond. With them, they get to launch the same ARM-based Windows8 they plan to put on notepad and say “see? A laptop is just a glorified notepad. Since we’re not a monopoly in notepads, we’re not one in notebooks either.”

Will be interesting following what happens in the European courts.

 --kevin