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Paul Merrell

Rapid - Press Releases - EUROPA - 0 views

  • MEMO/09/15 Brussels, 17th January 2009
  • The European Commission can confirm that it has sent a Statement of Objections (SO) to Microsoft on 15th January 2009. The SO outlines the Commission’s preliminary view that Microsoft’s tying of its web browser Internet Explorer to its dominant client PC operating system Windows infringes the EC Treaty rules on abuse of a dominant position (Article 82).
  • In the SO, the Commission sets out evidence and outlines its preliminary conclusion that Microsoft’s tying of Internet Explorer to the Windows operating system harms competition between web browsers, undermines product innovation and ultimately reduces consumer choice. The SO is based on the legal and economic principles established in the judgment of the Court of First Instance of 17 September 2007 (case T-201/04), in which the Court of First Instance upheld the Commission's decision of March 2004 (see IP/04/382), finding that Microsoft had abused its dominant position in the PC operating system market by tying Windows Media Player to its Windows PC operating system (see MEMO/07/359).
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  • The evidence gathered during the investigation leads the Commission to believe that the tying of Internet Explorer with Windows, which makes Internet Explorer available on 90% of the world's PCs, distorts competition on the merits between competing web browsers insofar as it provides Internet Explorer with an artificial distribution advantage which other web browsers are unable to match. The Commission is concerned that through the tying, Microsoft shields Internet Explorer from head to head competition with other browsers which is detrimental to the pace of product innovation and to the quality of products which consumers ultimately obtain. In addition, the Commission is concerned that the ubiquity of Internet Explorer creates artificial incentives for content providers and software developers to design websites or software primarily for Internet Explorer which ultimately risks undermining competition and innovation in the provision of services to consumers.
  • Microsoft has 8 weeks to reply the SO, and will then have the right to be heard in an Oral Hearing should it wish to do so. If the preliminary views expressed in the SO are confirmed, the Commission may impose a fine on Microsoft, require Microsoft to cease the abuse and impose a remedy that would restore genuine consumer choice and enable competition on the merits.
  • A Statement of Objections is a formal step in Commission antitrust investigations in which the Commission informs the parties concerned in writing of the objections raised against them. The addressee of a Statement of Objections can reply in writing to the Statement of Objections, setting out all facts known to it which are relevant to its defence against the objections raised by the Commission. The party may also request an oral hearing to present its comments on the case. The Commission may then take a decision on whether conduct addressed in the Statement of Objections is compatible or not with the EC Treaty’s antitrust rules. Sending a Statement of Objections does not prejudge the final outcome of the procedure. In the March 2004 Decision the Commission ordered Microsoft to offer to PC manufacturers a version of its Windows client PC operating system without Windows Media Player. Microsoft, however, retained the right to also offer a version with Windows Media Player (see IP/04/382).
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    It's official, hot off the presses (wasn't there a few minutes ago). We're now into a process where DG Competition will revisit its previous order requiring Microsoft to market two versions of Windows, one with Media Player and one without. DG Competition staff were considerably outraged that Microsoft took advantage of a bit of under-specification in the previous order and sold the two versions at the same price. That detail will not be neglected this time around. Moreover, given the ineffectiveness of the previous order in restoring competition among media players, don't be surprised if this results in an outright ban on bundling MSIE with Windows.
Gonzalo San Gil, PhD.

Robert McDowell: The U.N. Threat to Internet Freedom - WSJ.com - 5 views

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    [Top-down, international regulation is antithetical to the Net, which has flourished under its current governance model. ...]
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    Trying to fix what ain't broken ...
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    I wish it were a matter to "fix" anything... The issue is trying to Control something that comes working fine without such 'control'...
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    You're right. The desire to censor is the real driving force here, I think.
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    A further thought: There is binding and enforceable international law on the subject of freedom of speech and access to information in a treaty that has been ratified by all nations other than China, which has signed but not yet ratified the treaty. That treaty's terms might provide a rallying point for at least limiting the ITU's desire to grab power over the Internet. The International Covenant on Civil and Political Rights ("ICCRR") Article 19 provides: "1. Everyone shall have the right to hold opinions without interference. "2. Everyone shall have the right to freedom of expression; this right shall include freedom to seek, receive and impart information and ideas of all kinds, regardless of frontiers, either orally, in writing or in print, in the form of art, or through any other media of his choice. "3. The exercise of the rights provided for in paragraph 2 of this article carries with it special duties and responsibilities. It may therefore be subject to certain restrictions, but these shall only be such as are provided by law and are necessary: (a) For respect of the rights or reputations of others; (b) For the protection of national security or of public order (ordre public), or of public health or morals." http://www2.ohchr.org/english/law/ccpr.htm The last exception is broader than what I would prefer. However, while the rights created by by the ICCRR transcend national boundaries, the quoted provision unquestionably stands for the proposition that exception (b) applies only to nations and not to a U.N. body itself. Therefore, there is a very strong argument that content-based both content-based restrictions and changes in the internet's functioning to facilitate such restrictions are beyond the legal jurisdiction of the ITU. I.e., changes in the internet's functioning to facilitate content-based restrictions require consideration of the content types to be restricted. The treaty permits only national level restrictions and arguably, it thereb
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    *Oh, we got -even from before- The Art 27 of The THE UNIVERSAL DECLARATION OF HUMAN RIGHTS https://www.un.org/en/documents/udhr/index.shtml#a27 [(1) Everyone has the right freely to participate in the cultural life of the community, to enjoy the arts and to share in scientific advancement and its benefits. ...] And, as 'NOBODY' (Repeat 'NOBODY') has demonstrated that sharing affects negatively to creators (more yet, all the contrary), saying that SHARING (in any way the technology allows) is an EXCELLENT way to "participate in the cultural life of the community, to enjoy the arts and to share in scientific advancement and its benefits." is The Ultimate Truth. http://www.p2pnet.net/story/7566 *'Authorities only want to control the Information Flow... ...Nothing related with the "Defence" of Anything... but their own craving of control.
Paul Merrell

House Passes Cellphone Unlocking Bill While New Provision Causes Withdrawals | Bloomber... - 0 views

  • On Feb. 25, the House of Representatives passed by a vote of 295-114 under suspension of the rules a bill aimed at creating a statutory right for owners of cellphones to be able to “unlock” their phones so that they can use the same phone with a different service provider.The Unlocking Consumer Choice Act (H.R. 1123), which was introduced in March by Rep. Robert W. Goodlatte (R-Va.), chairman of the House Judiciary Committee, was widely supported by members on both sides of the aisle.However, some representatives expressed objections to the current form of the legislation and even suggested that statutory protection of unlocking was no longer necessary, given that the Federal Communications Commission had in December persuaded the wireless industry to allow unlocking on a voluntary basis (241 PTD, 12/16/13).
  • On the morning of the day that the vote was to take place, several representatives who had previously supported the bill, issued a letter to their colleagues urging that H.R. 1123 be defeated on the floor of the House. The letter--signed by Reps. Zoe Lofgren (D-Calif.), Anna G. Eshoo (D-Calif.), Thomas H. Massie (R-Ky.), and Jared S. Polis (D-Colo.)--objected to a provision added to the bill after its approval by the full committee in July (148 PTD, 8/1/13).The new provision would exempt from protection “bulk unlocking” of phones. This provision might have something to with concerns expressed by some members of the Judiciary Committee in last year's hearings on the bill that permitting individual consumers to unlock their phones should not extend to businesses who charge consumers to unlock their phones for them.The letter referred to statements by the Electronic Frontier Foundation and Public Knowledge, consumer groups that had both supported the bill in the past, in which they withdrew their support because of the appearance of the new provision.
Paul Merrell

Rapid - Press Releases - EUROPA - 0 views

  • The Commission found that Intel engaged in two specific forms of illegal practice. First, Intel gave wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, their x86 CPUs from Intel. Intel also made direct payments to a major retailer on condition it stock only computers with Intel x86 CPUs. Such rebates and payments effectively prevented customers - and ultimately consumers - from choosing alternative products. Second, Intel made direct payments to computer manufacturers to halt or delay the launch of specific products containing competitors’ x86 CPUs and to limit the sales channels available to these products.
  • Intel awarded major computer manufacturers rebates on condition that they purchased all or almost all of their supplies, at least in certain defined segments, from Intel: Intel gave rebates to computer manufacturer A from December 2002 to December 2005 conditional on this manufacturer purchasing exclusively Intel CPUs Intel gave rebates to computer manufacturer B from November 2002 to May 2005 conditional on this manufacturer purchasing no less than 95% of its CPU needs for its business desktop computers from Intel (the remaining 5% that computer manufacturer B could purchase from rival chip maker AMD was then subject to further restrictive conditions set out below) Intel gave rebates to computer manufacturer C from October 2002 to November 2005 conditional on this manufacturer purchasing no less than 80% of its CPU needs for its desktop and notebook computers from Intel Intel gave rebates to computer manufacturer D in 2007 conditional on this manufacturer purchasing its CPU needs for its notebook computers exclusively from Intel.
  • Furthermore, Intel made payments to major retailer Media Saturn Holding from October 2002 to December 2007 on condition that it exclusively sold Intel-based PCs in all countries in which Media Saturn Holding is active.
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  • In its decision, the Commission does not object to rebates in themselves but to the conditions Intel attached to those rebates.
  • Intel structured its pricing policy to ensure that a computer manufacturer which opted to buy AMD CPUs for that part of its needs that was open to competition would consequently lose the rebate (or a large part of it) that Intel provided for the much greater part of its needs for which the computer manufacturer had no choice but to buy from Intel. The computer manufacturer would therefore have to pay Intel a higher price for each of the units supplied for which the computer manufacturer had no alternative but to buy from Intel. In other words, should a computer manufacturer fail to purchase virtually all its x86 CPU requirements from Intel, it would forego the possibility of obtaining a significant rebate on any of its very high volumes of Intel purchases. Moreover, in order to be able to compete with the Intel rebates, for the part of the computer manufacturers' supplies that was up for grabs, a competitor that was just as efficient as Intel would have had to offer a price for its CPUs lower than its costs of producing those CPUs, even if the average price of its CPUs was lower than that of Intel.
  • For example, rival chip manufacturer AMD offered one million free CPUs to one particular computer manufacturer. If the computer manufacturer had accepted all of these, it would have lost Intel's rebate on its many millions of remaining CPU purchases, and would have been worse off overall simply for having accepted this highly competitive offer. In the end, the computer manufacturer took only 160,000 CPUs for free.
  • Intel also interfered directly in the relations between computer manufacturers and AMD. Intel awarded computer manufacturers payments - unrelated to any particular purchases from Intel - on condition that these computer manufacturers postponed or cancelled the launch of specific AMD-based products and/or put restrictions on the distribution of specific AMD-based products. The Commission found that these payments had the potential effect of preventing products for which there was a consumer demand from coming to the market. The Commission found the following specific cases: For the 5% of computer manufacturer B’s business that was not subject to the conditional rebate outlined above, Intel made further payments to computer manufacturer B provided that this manufacturer : sold AMD-based business desktops only to small and medium enterprises sold AMD-based business desktops only via direct distribution channels (as opposed to through distributors) and postponed the launch of its first AMD-based business desktop in Europe by 6 months. Intel made payments to computer manufacturer E provided that this manufacturer postponed the launch of an AMD-based notebook from September 2003 to January 2004. Before the conditional rebate to computer manufacturer D outlined above, Intel made payments to this manufacturer provided that it postponed the launch of AMD-based notebooks from September 2006 to the end of 2006.
  • The Commission obtained proof of the existence of many of the conditions found to be illegal in the antitrust decision even though they were not made explicit in Intel’s contracts. Such proof is based on a broad range of contemporaneous evidence such as e-mails obtained inter alia from unannounced on-site inspections, in responses to formal requests for information and in a number of formal statements made to the Commission by the other companies concerned. In addition, there is evidence that Intel had sought to conceal the conditions associated with its payments.
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    This is an uncharacteristically strong press release from DG Competition. I still must read the order, but the description of the evidence is incredible, particularly the finding of concealment of its rebate conditions by Intel.
Gonzalo San Gil, PhD.

Technology Changes; People Don't | Baseline [# ! Note] - 0 views

    • Gonzalo San Gil, PhD.
       
      # ! ... Pe@ple evolves... technology just helps... if used in a riight way. # ! Don't mistake the object with its uses...
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    "As smart devices advance, they deliver more detailed, actionable data, but it's doubtful whether they will actually make any significant difference in our lives."
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    "As smart devices advance, they deliver more detailed, actionable data, but it's doubtful whether they will actually make any significant difference in our lives."
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