Microsoft Receives Russian Antitrust Probe

By Kevin Parrish, published on June 5, 2009 at 2:40 PM
Source: Tom's Guide US | Keywords: , , , , | Themes: Software
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Microsoft seems to be a likely target as of late, now facing a little probing action from Russia's state anti-monopoly service.

Microsoft seems to be a likely target as of late, now facing a little probing action from Russia's state anti-monopoly service. The company is now falling under scrutiny because of alleged supply cutbacks of the Windows XP operating system in Russia. According to the agency, Microsoft has violated anti-monopoly legislation by halting delivery of XP, both as a separate product and as a pre-installed operating system. There are also questions in regards to its XP pricing policy. The agency plans to consider its case against Microsoft on July 24.

"Analysis of the market for various operating systems shows that the transfer to the new Windows Vista operating system is occurring while demand for the previous operating system, Windows XP, continues," the agency told Reuters. "Demand for separately packaged and pre-installed versions of Windows XP is also confirmed by retailers and the number of orders from the government."

The overall problem is that, according to the agency, cutting delivery of Windows XP is a violation, especially so because the operating system is still in high demand while the country slowly upgrades to Windows Vista. Of course, it doesn't help matters by cutting off the Windows XP supply while the Russian government is still placing orders. But does this constitute a full-fledged investigation? They're usually not common in Russia even though the agency is in contact with Russian companies on a regular basis.

When contacted over the allegations placed by the state anti-monopoly service, Microsoft's Moscow office said that it had not received an official query. "We (have) always answered antimonopoly service questions in full and intend to continue this practice in future," Microsoft spokeswoman Marina Levina said by telephone.

Microsoft has come under fire by European Commission, firstly for the inclusion of Media Player in the Windows operating system that eventually cost the company 500 million euros ($708.4 million). When Microsoft allegedly didn't comply with the ruling, the EU fined the company an additional 900 million Euros ($1.275 billion) for non-compliance, however Microsoft is currently appealing against the ruling. Just recently the EU came after the company again for integrating the Internet Explorer browser into the operating system as well, demanding that Microsoft remove the software from Windows or face another fine.

But in this particular instance, there was no mention of fines on behalf of the Russian state anti-monopoly service--at least, not yet. As with previous cases against Microsoft, more details will surface within the next few weeks.

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Comments

Parrdacc 06/05/2009 8:49 PM
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Russia has a anti-monopoly service? Guess that makes sense. Everyone else seems to have one so they can basically use it has the cash cow. I mean how dare M$ do they not know this can cause problems with the Russian cracked and pirated software industry that I rel...I mean do not condone. What was M$ thinking?

dman3k 06/05/2009 8:52 PM
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Surprise surprise... next up for M$, China!

So when will the Apple and their iPod/iPhone bundling with Safari and iTunes monopoly be sued?

Blessedman 06/05/2009 8:58 PM
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So I am curious how they can be probed by countries they do not call their home. If Russia doesn't like their practices then block their products from their shelves and create their own OS and quit crying.

rocky1234 06/05/2009 9:00 PM
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DO they know that Windows XP is on the way out of coarse Microsoft is gonna cut back supply of a OS that is gonna be phased out soon. This is not gonna go far & if it does all I can say is wow. To the EU ummm not include IE or Media player get off the pot already these programs are included in Windows to make life a bit easier for the everyday user & besides it is nice to have a media player to play some music while going out & looking for something else to replace the Windows Media Player keyword here go out & look for which brings me to the next point if microsoft was forced to remove IE then how the heck is a user supposed to go & get another broswer to replace IE or even be able to find another media player if there is no way to get to the web pages to find anything again EU get off the pot better yet put the crack pipe away. The EU also said that Microsoft should include other companies programs in the windows install DVD umm ok why should microsoft have to be forced to include other parties products on their install disks are these other companies gonna pay Microsoft for this right I don't think they will want to so why should Microsoft do it for free. Maybe the EU should go & look at Apple they include everything but a toilet in their OS & the EU does not seem to care about that. It's time for the EU & others like Russia & anything one else to stop worrying about crap like this & find other things to wste their time with because this crap is totally getting out of hand already it seems it is a quick way to make a buck & that is about it.

Andraxxus 06/05/2009 9:02 PM
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From Russia with...love?

magicandy 06/05/2009 9:05 PM
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'Facing a little probing action'?

Nice one :)

tenor77 06/05/2009 9:24 PM
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MS: "Did you just grab my ass?"

m3kt3k 06/05/2009 9:25 PM
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Just a money grab. This is getting just stupid. Whats next Kenyans taking americans to court because we flaunt our lifestyle of I dunno food.

hellwig 06/05/2009 9:32 PM
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IANARL, I know nothing of Russian law, but what law could possibly dictate that a company must sell a product because it's popular? The only thing I can think of is that Russia sees Microsoft abusing its dominance, and forcing the government itself to switch from XP to Vista, and, depending on any support agreements, this could be a violation of some contract. Dunno really, just speculation.

(IANARL = I am not a russian lawyer)

squatchman 06/05/2009 9:33 PM
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They're worried about Vista phasing XP out when we're staring into the maw of windows 7 eh?


kittle 06/06/2009 1:28 AM
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ok mabye I missed something...
but it sounds like russia is complaining because ms has Stopped selling XP.
WTF? Who is to say where ms can and cannot sell their OS. Now as to HOW they sell and market it -- thats a different issue.

Anonymous 06/06/2009 1:45 AM
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Its mostly because, most users in Russia probably aren't running Quad Cores with over 2 gigs of ram to be able to run Vista smoothly. I think they have the right to complain as a customer, we all do it.

Anonymous 06/06/2009 2:24 AM
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I wish I could sue an auto manufacturer for no longer selling parts I need for my 'aged' car...

falchard 06/06/2009 2:52 AM
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I think it would be funny if MS pulled out of those markets deaming them unprofitable.

starryman 06/06/2009 2:54 AM
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As much as I can't stand M$... I can't stand these damn EU countries and other rogue nations who think they can milk a US company for anti-trust. It's laughable. It's just being anti-american. If Russia wants to sue M$ then let's sue Lukoil Americas (a large gas company from Russia who operates in the US).

ronml 06/06/2009 3:33 AM
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Wouldn't a donation to One Russia and the Nashi youth brownshirts suffice?
Russia has no rule of law and they re instituted an oil monopoly, which they use a political weapon.

lordfakie 06/06/2009 3:36 AM
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JUm.. then why they don't complaint about cars having doors and tires from factory. you could always download any Internet browser for free if you want. I could see a case if microsoft did not allow or charge you for use other OS. what about apple??

lordfakie 06/06/2009 3:39 AM
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starryman 06/06/2009 2:54 AM Hide Insert quote. Report -1+
As much as I can't stand M$... I can't stand these damn EU countries and other rogue nations who think they can milk a US company for anti-trust. It's laughable. It's just being anti-american. If Russia wants to sue M$ then let's sue Lukoil Americas (a large gas company from Russia who operates in the US).


Yeah and let us sue middle east for monopolicing Oil reserrves!

anamaniac 06/06/2009 3:46 AM
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As much as I love you Russia, back off.
If all else fails, maybe Russia can buy out piratebay for their software needs. :)

starryman :
As much as I can't stand M$... I can't stand these damn EU countries and other rogue nations who think they can milk a US company for anti-trust. It's laughable. It's just being anti-american. If Russia wants to sue M$ then let's sue Lukoil Americas (a large gas company from Russia who operates in the US).



US is a global company, who gives a damn if it's amercian? Russia is pissed and they're taking it out on the one who's pissing them off... Go be patriotic elsewere.
You make this Canadian use the UK site instead...

falchard :
I think it would be funny if MS pulled out of those markets deaming them unprofitable.



I like your idea. Though in reality being a bad business decision...

dman3k :
Surprise surprise... next up for M$, China!So when will the Apple and their iPod/iPhone bundling with Safari and iTunes monopoly be sued?



Agreed.
Atleast IE isn't too horrid compared to Safari.


As a side note: I wish I had Russian heritage, the KGB are awesome, my drunken Irish heritage of wife beating war sanctioned murderes is crap...

sarkaznik 06/06/2009 10:57 AM
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Do you think Russia, the vodka, bear?

horse-radish to you!

Anonymous 06/08/2009 12:50 PM
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First and foremost, read the article and understand what it says before making comments. Different agencies within the Russian govt. are or were at the time of this suit, in sales negotiations with M$ for systems probably running the XP OS. Now under those negotiations if M$ defaults and sends them systems with Vista and they begin having problems, as most people have, converting over it could cause lot's of internal and international difficulties.

As to the browser subject of IE in the OS. They aren't complaining about the browser being there, just that it has been INTEGRATED into the OS. Now if you are going to have a default browser keep it stand alone so that those that do not wish to use said browser can use it once to get the one they desire and then delete it from their system.

Can you do that with IE? No. Why? Because it is INTEGRATED into the OS.

People please use some common sense and read what the article is actually saying before opening your mouths and spewing to be heard. It shows a serious lack of intellect and common sense.

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