Networker: Clubbing the competition

Picture this: two computer operating systems are fighting it out
for control of millions of personal computers around the world (the operating
system is the fundamental piece of software which allows a computer to
work). One of these is owned and promoted by a giant global corporation.
The other, a free program, is written by enthusiastic volunteers (and backed
by a handful of lesser giant corporations fearful for their own survival).

A venerable software company, some of whose products have been household
names, has fallen on hard times. But it still hopes to make a comeback.
Seeing a market opportunity, it makes a major investment in developing
software for the free (and more reliable) operating system. After major
investment the development is starting to take shape. But the stock market
is impatient, and the share price falls.

Suddenly the giant corporation swoops, picking up 24 million shares
for around $200 million.

Within weeks the company announces a restructure. But the only thing
it restructures is its Linux development strategy, which it throws out.

No, it isn't a new movie presenting a thinly disguised and slightly
exaggerated description of Microsoft Corporation and the monopolistic practices
that got it into trouble with US anti-monopoly legislation in the last
couple of years. It is the actual events of the past few weeks. The companies
involved are Microsoft and embattled software company Corel.

Depending on your point of view, Microsoft is either a greedy and opportunistic
monopoly producing cumbersome and shoddy software based on its market position,
or a heroic leader of the computer revolution criticised for its brilliance
and success.

The earlier case against Microsoft depended to a fair extent on deduction
(Microsoft holds nearly 100% of several market areas, so therefore it is
in a monopolistic situation) and accusation (multi-billion dollar corporations
testifying that “Microsoft told us that it would destroy us if we didn't
give in its demands”). The latest case is just good old fashion market
domination, mugging the opposition in plain daylight.

Some of the computer industry press (which relies heavily on Microsoft
for advertising revenues) gave great detail about the difficulties Corel
faced with Linux. “We thought that Linux on the desktop would grow more
quickly than it did”, Corel's president Derek Burney is quoted in one.
He then mumbles about how wonderful Microsoft's promised .net architecture
will be (Microsoft enthusiasts are ceaselessly describing how wonderful
things are going to be in the future).

Others were less than ecstatic. Tom Miller is governor of the US state
of Iowa and represents a coalition of 17 US states suing Microsoft in an
antitrust lawsuit. The states are angry at the amount of money they have
to pump into the pockets of Microsoft boss Bill Gates. On February 15 the
Washington Post quoted him as saying his coalition was looking at
the Corel decision. The US Justice Department is also investigating. The
new Bush government has yet to let it be known if it will let Microsoft
off the hook.

BY GREG HARRIS (gregharris_greenleft@hotmail.com)

From GLW issue 439