Linked by Thom Holwerda on Wed 7th May 2008 18:11 UTC, submitted by Dan Warne
Hardware, Embedded Systems As we all know, the Eee PC, running a modified Xandros, has been a major hit for Asus, and because of that, also a major hit for Linux. The device proved that a computer with a pre-installed Linux distribution can still be s successful machine, and many hoped that this would push Asus and other vendors to produce more computers with Linux pre-installed. This hope could be in vain after all if the new Windows XP-based Eee PC has anything to do with it.
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RE: Scared
by lemur2 on Thu 8th May 2008 12:42 UTC in reply to "Scared"
lemur2
Member since:
2007-02-17

Microsoft is terrified of any linux computer having broad market penetration and is likely subsidising the Windows version and putting pressure on Asus to sell more Windows versions than Xandros versions. When you have a near monopoly you will do almost anything to protect it. Even if it ends up costing Microsoft hundreds of millions, it is worth it to them. Just my $0.02.


Without doubt this is the case.

The problem will be demonstrating that this is the case to the ACCC.

http://en.wikipedia.org/wiki/Australian_Competition_and_Consumer_Co...

The Australian Competition and Consumer Commission (ACCC) is an independent authority of the government of Australia. It was established in 1995 with the amalgamation of the Australian Trade Practices Commission (TPC) and the Prices Surveillance Authority to administer the Trade Practices Act 1974 (Cth). Its mandate is to protect consumer rights, business rights and obligations, perform industry regulation and price monitoring and prevent illegal anti-competitive behaviour.


It is clearly "illegal anti-competitive behaviour" and also against "consumer rights & business rights" for Microsoft to be able to force Asus to not offer to Asus customers the option to get the best deal.

http://en.wikipedia.org/wiki/Trade_Practices_Act_1974

The things that could potentially apply here I have shown in bold from the Wikipedia extract:

http://en.wikipedia.org/wiki/Trade_Practices_Act_1974#Part_IV:_Rest...

===================
These provisions prohibit:

* Most Price Agreements (see Cartel and Price-Fixing)

* Primary boycotts (an agreement between parties to exclude another)

* Secondary boycotts whose purpose is to cause substantial lessen competition (Actions between two persons engaging in conduct hindering 3rd person from supplying or acquiring goods or services from 4th)

* Misuse of market power - taking advantage of substantial market power in a particular market, for one or more proscribed purposes; namely, to eliminate or damage an actual or potential competitor, to prevent a person from entering a market, or to deter or prevent a person from engaging in competitive conduct.

* Exclusive dealing - an attempt to interfere with freedom of buyers to buy from other suppliers, such as agreeing to supply a product only if a retailer does not stock a competitor's product. Most forms of exclusive dealing are only prohibited if they have the purpose or likely effect of substantially lessening competition in a market.

* Third-line forcing: A type of exclusive dealing, third-line forcing involves the supply of goods or services on the condition that the acquirer also acquires goods or services from a third party. Third-line forcing is prohibited per se.

* Resale price maintenance - fixing a price below which resellers cannot sell or advertise

* Mergers and acquisitions that would result in a substantial lessening of competition

=====

... There is also a prohibition on "predatory pricing" of product on a market in order to remove a competitor.

http://en.wikipedia.org/wiki/Predatory_pricing
http://www.accc.gov.au/content/index.phtml/itemId/816375

Finally, in Australia, AFAIK product "tying" is also illegal

http://en.wikipedia.org/wiki/Tying_(commerce)
"Some kinds of tying, especially by contract, have historically been regarded as anti-competitive practices. The basic idea is that consumers are harmed by being forced to buy an undesired good (the tied good) in order to purchase a good they actually want (the tying good), and so would prefer that the goods be sold separately. The company doing this bundling may have a significantly large market share so that it may impose the tie on consumers, despite the forces of market competition. The tie may also harm other companies in the market for the tied good, or who sell only single components."

Edited 2008-05-08 12:49 UTC

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