Coyote Blog

We seem to be getting these stories in batches lately (others here and here) but leave it to the EU to trump even San Francisco in anti-consumer stupidity:

Microsoft lost its appeal of a European antitrust order Monday
that obliges the technology giant to share communications code with
rivals, sell a copy of Windows without Media Player and pay a $613
million fine - the largest ever by EU regulators.

The EU
Court of First Instance ruled against Microsoft on both parts of the
case, saying the European Commission was correct in concluding that
Microsoft was guilty of monopoly abuse in trying to use its power over
desktop computers to muscle into server software.

It also said regulators had clearly demonstrated that selling media software with Windows had damaged rivals.

"The
court observes that it is beyond dispute that in consequence of the
tying consumers are unable to acquire the Windows operating system
without simultaneously acquiring Windows Media Player," it said.

"In
that regard, the court considers that neither the fact that Microsoft
does not charge a separate price for Windows Media Player nor the fact
that consumers are not obliged to use that Media Player is irrelevant."

Yes, you are reading it correctly.  Microsoft is being penalized for giving the consumer too much value by bundling in additional features and programs for free into its OS.  And just to make sure that you understand that this has nothing to do with the consumer, but is purely a complaint of large competitors that can't keep up, they make it clear that they want the bundling stopped even if it does not change the price of the OS one penny (pfennig or whatever the Euro equivalent is).  They want the product stripped down and are deliberately trying to reduce its value to customers.

Gwynnie at Maggie's Farm has a funny comment, saying, "Microsoft is guilty of succeeding while American."

Yes, for those who are counting, this is something like post number 157 on the mismatch between anti-trust myth and reality.  The myth is that it is about protecting the consumer.  The reality is that anti-trust is an opportunity for companies to get the government to sit on their competitors:

In their new version of Windows dubbed "Vista," Microsoft has included a number of useful features that has several companies rattling the anti-trust sabers once again.

For instance, Adobe Inc., creators of the widely used PDF
document standard, object to Microsoft's built-in functionality that
gives users the ability to create PDF files without having to use
Adobe's own software.

Real Networks, per usual, is protesting that Microsoft is integrating media playback capabilities in the form of Windows Media Player 11, which competes directly with Real Player.

And now Symantec, developers of anti-virus software, is complaining that Microsoft will include their own firewall, which could lower sales of Symantec's own solutions.

And as mentioned above, all three of these firms are appealing to regulators to "solve" what they see as anti-competitive business practices to prevent their sales from eroding.

Surely then, it is only a matter of time before software firms that
make calculators or solitaire protest the inclusion of such services
into Windows. Is not the native support of the English language (and
dozens of others) a clear and present danger to third-parties eeking
out a living?

Soon thereafter, perhaps boutique's specializing in steering-wheels
and headlights may begin to sue automobile companies for integrating a
steering-wheel and headlights into cars. And no one should forget about
those built-in cassette and CD players.

It's hard to see how consumers are hurt by getting more free functionality in their operating system.  Of course, the companies above will work very hard to get the government to require that you pay extra for these components.