[Gllug] Re: Gates to get Knighthood!!! (Andrew Halliwell)

[Richard Jones]

On Thu, Mar 03, 2005 at 03:59:34PM +0000, Jack Bertram wrote:
> * None of these other systems were able to compete against DOS, despite
> their technology superiority.  This is despite the presence of competing
> operating systems (OS/2, CP/M) on the same architecture, and at least in
> the period we're talking about (pre-1992, say) it's difficult to accuse
> Microsoft of having a monopoly position.  After all, there were DOS
> clones available in those days too!  So I'm not convinced that
> Microsoft's "parasitism" was responsible for holding back the industry,

Those who forget history ...

It was impossible to buy a PC which didn't have DOS on it (outside
expensive Macs, and some very niche markets which we needn't worry
about).

Why was this?

Because Microsoft ILLEGALLY forced manufacturers ("OEMs" as they are
called) into contracts which either prevented or penalised them from
shipping other operating systems.  Most OEMs would pay Microsoft the
full price for DOS on every machine they shipped, regardless of what
operating system it actually shipped with.  Microsoft also threatened
to remove the favourable discounts from OEMs which they enjoyed if the
OEMs stepped out of line.  This was found to be illegal in 1995, but
by then the monopoly was established, and the legal remedies were
toothless anyway.

The same situation actually prevails today, although it appears that
the agreements are now merely informal.  Dell, for instance, gets
plenty of kickbacks from Microsoft for shipping Windows on Intel only.
The kickbacks are now called marketing incentives, but the same
situation applies.

Rich.

-- 
Richard Jones, CTO Merjis Ltd.
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