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Readers Comments on Government Regulation
In my last article, I discussed the role of government
in regulating high technology- computers, software, etc
(sorry it took this long for a new article- I'll spare
the excuses, but I've been rather indisposedÖ) While
the response sampling has not been very big, the
respondents were very succinct and offered very useful
viewpoints. By and large, the respondents fall into
one of two categories:
Jim Bryson wrote:
The counterpoint is that unchecked business will in its
nature tend to monopoly. Cameron Reddy wrote:
Others offered into evidence
Microsoft as an example, who forced "inferior" or
"poorly implemented" products on customers and quashed
competing products regardless of their comparative
quality. Ultimately, There doesn't really seem to be a
logical high ground as to government rights and
responsibilities in this matter.
Consequently, there were only very few individuals who
broached the issue of control remedies. Wyatt Earp
offered this:
As the righteousness of government is unclear, the remedies
are doubly so. One thing became clear: no one really
believes that Microsoft is acting in the best interests
of the public or the industry.
So what is to be done? So far, none of the big players
in the industry have shown that they are capable of
self-regulation. The profits are just too lucrative,
and the pride of success is not easily swallowed.
History tells us that in the absence of regulating
power, every free market degenerates to an oppressive
oligarchy of the most powerful, which is nearly as
destructive as a Soviet style command economy, and it
is the responsibility of our government to ensure that
this doesn't happen. Since the public interest
spotlight is currently pointed squarely at Microsoft,
I'm going to use them in the context of this study.
Microsoft rose to prominence by realizing the potential
of various concepts in the computer industry and
presenting them to a greater population of customers
than the originators. Apple popularized the GUI-
Microsoft sold it on open hardware. Lotus popularized
the spreadsheet- Microsoft made it GUI. The examples
are numerous. But then came a point when Microsoft
eclipsed all of their competition, and for one reason
or another Microsoft's products became synonymous with
inefficient, buggy bloatware- while no competitor
managed to enter the market. Microsoft's tactics
shifted from cutting deals to ensure the best
distribution for their products to forcing vendors to
cut the deals to assure Microsoft will even allow them
the product to begin with. Windows became such a
de-facto part of the modern PC that no vendor DARES to
mess with Microsoft, effectively locking out any viable
OS alternative. With this club at hand, Microsoft can
force vendors into selling their other products, or
shutting out competitors in other fields, etc. Long
story short- Windows IS the crowbar, and Microsoft has
no moral or ethical qualms about using it.
The government can't and shouldn't punish the success
Microsoft enjoyed that brought them here. But- the
government MUST act to stop the outcome. There really
is only one way to affect this, and it is by taking the
crowbar away. What if someone else could sell Windows?
The whole monopoly goes away. Microsoft no longer can
demand bundling, nor can it withhold licenses from
resellers, nor can it withhold OS support from third
party ISVs. What if Microsoft is forced to offer the
base source code of Windows 95 to the public domain,
but remains entitled for a royalty fee for every copy
of a derivative product commercially sold? They can
continue to sell the Microsoft branded Windows 95,
Windows 98, Windows NT, 2000- whatever- But a
competitor can take the source code and compile a
different- maybe even better- Windows version and sell
it as well! If Microsoft's arguments are true, that
they are providing the best product for the customer,
then the market will back them up, and will shut up all
the critics that are complaining about what a terrible
product Windows is. But, If Red Hat Windowsô sells
crashes less and sells twice as many copies- Microsoft
is forced to put its money where its mouth is or lose
sales. Either way, Microsoft is not penalized for its
previous success- Red Hat will pay Microsoft some
royalty ($20 per commercial sales? Just a thought.)
What do you think?
I welcome all questions and comments at
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