Microsoft: Difference between revisions

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==Consumer impact summary==

===Anti-competitive practices===

*'''Monopolistic bundling'''

:Forcing OEMs to preinstall Microsoft software such as Internet Explorer (IE) with Windows, making it difficult for competitors like Netscape to compete.<ref name=":0">{{Cite web |date=January 25, 2002 |title=Competitive Processes, Anticompetitive Practices And Consumer Harm In The Software Industry: An Analysis Of The Inadequacies Of The Microsoft-Department Of Justice Proposed Final Judgment |url=https://www.justice.gov/atr/competitive-processes-anticompetitive-practices-and-consumer-harm-software-industry-analysis |website=DOJ }}</ref><ref name=":1">{{Cite web |last= |first= |date= |title=Microsoft Antitrust Case |url=https://corporatefinanceinstitute.com/resources/management/microsoft-antitrust-case/ |website= }}</ref>

*'''Exclusionary contracts'''

:Blocking rivals' distribution channels by signing exclusive deals with PC manufacturers and ISPs. <ref name=":0"></ref>

*'''Sabotaging competitors'''

:Deliberately degrading interoperability of competing software (e.g., Java, ''Netscape'') with Windows. <ref name=":0"></ref>

*'''Predatory pricing'''

:Offering IE for free to undercut ''Netscape'', later ruled anticompetitive. <ref name=":1"></ref>

===Cloud computing monopoly abuse===

*'''Discriminatory licensing'''

:Charging higher fees for running Windows Server on rival clouds versus Azure, stifling competition.<ref name=":2">{{Cite web |last=Browne |first=Ryan |date=December 3, 2024 |title=Microsoft faces £1 billion lawsuit in UK for allegedly overcharging rival cloud firms’ customers |url=https://www.cnbc.com/2024/12/03/microsoft-overcharging-rival-cloud-firms-customers-uk-lawsuit-says.html |website=cnbc.com }}</ref><ref name=":3">{{Cite web |last=Godoy |first=Jody |date=November 28, 2024 |title=Microsoft faces wide-ranging US antitrust probe |url=https://www.reuters.com/technology/microsoft-faces-wide-ranging-us-antitrust-probe-2024-11-27/ |website=reuters.com }}</ref>

*'''Lock-in tactics'''

:Making it costly or technically difficult for customers to migrate data from Azure to other platforms.<ref name=":3"></ref>

*'''Settlements under pressure'''

:Facing EU and UK lawsuits, Microsoft settled with some cloud vendors but retained practices criticized as unfair.<ref name=":2"></ref>

===Anti-consumer software and hardware policies===

*'''Forced online activation'''

:Requiring internet connectivity to set up Xbox consoles or install physical game discs, even for single-player modes.<ref name=":4">{{Cite web |date=April 12, 2021 |title=DRM or Die. How Anti-Consumer Practices Became the New Norm and the Consumers Are to Blame |url=https://cgicoffee.com/blog/2021/04/drm-or-die-anti-consumer-practices |website= }}</ref>

*'''DRM overreach'''

:Xbox Series X/S games demand online verification for disc-based installations, rendering offline play difficult.<ref name=":4"></ref>

*'''Recurring billing traps'''

:Defaulting users into subscription auto-renewals while making cancellation processes opaque.<ref>{{Cite web |last= |first= |date= |title= |url=https://learn.microsoft.com/en-us/answers/questions/3869973/why-is-ms-software-so-predatory?forum=windows-all&referrer=answers |website= }}</ref>

===Privacy and data exploitation===

*'''Collaboration with surveillance'''

:Working with the NSA and FBI to bypass encryption (PRISM program) and access user data (Skype, Outlook).<ref name=":5">{{Cite web |last=Milin-Ashmore |first=James |date=October 15, 2019 |title=Microsoft Alternatives Guide: How (and Why) to Avoid Microsoft |url=https://ethical.net/ethical/microsoft-alternatives/ |website= }}</ref>

*'''Unauthorized data collection'''

:Contractors reportedly listened to Xbox/Skype/Cortana audio without clear user consent.<ref name=":5"></ref>

*'''Dark patterns in Windows'''

:Manipulative UI designs to nudge users toward data-sharing opt-ins.<ref name=":5"></ref>

===Ethical and legal controversies===

*'''Censorship compliance'''

:Removing content from Bing/LinkedIn to appease authoritarian regimes (e.g., China).<ref name=":5"></ref>

*'''Military contracts'''

:Developing ''HoloLens AR'' tech for the U.S. Army to "turn warfare into a video game," contrary to employee expectations.<ref name=":5"></ref>

*'''Patent aggression'''

:Threatening open-source projects like calling Linux a "cancer" and suing small entities such as MikeRoweSoft.com.<ref name=":5"></ref>

===Market manipulation and stifling innovation===

*'''Artificial price inflation'''

:Overcharging consumers by $20–30 billion for Windows licenses in the 1990s by hiding costs in PC bundles.<ref name=":0"></ref>

*'''Acquisition dominance'''

:Buying competitors like GitHub, VS Code, and LinkedIn to absorb markets and limit alternatives.<ref name=":5"></ref>

*'''Delaying competitors'''

:Intentionally slowing development of rival products like IBM and Apple through contractual or technical barriers.<ref name=":0"></ref>

===Monopolization===

*Exclusive licensing agreements with ''IBM'' and other PC manufacturers ensured that ''MS-DOS'' became the dominant OS.

*Exclusive licensing agreements with ''IBM'' and other PC manufacturers ensured that ''MS-DOS'' became the dominant OS.~~<ref>{{Cite web |last= |first= |date= |title= |url=https://www.britannica.com/money/Microsoft-Corporation |website= }}</ref>~~

*Priced ''MS-DOS'' significantly lower than competitors, making it the default choice for PC makers.

*Launched ''Windows 1.0'' in 1985, as a graphical extension of ''MS-DOS''. They had over 90% of the PC market by the 1990's.<ref>{{Cite web |date=January 29, 2002 |title=Competitive Processes, Anticompetitive Practices And Consumer Harm In The Software Industry: An Analysis Of The Inadequacies Of The Microsoft-Department Of Justice Proposed Final Judgment |url=https://www.justice.gov/atr/competitive-processes-anticompetitive-practices-and-consumer-harm-software-industry-analysis |website=justice.gov }}</ref>

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===Xbox 360 Defect - The "Red Ring of Death"===

In 2005, Microsoft released the ''Xbox 360''. Not very long after, consumers started reporting problems with their consoles- three red flashing lights on the ring around the power button. This was coined by consumers as the "''Red Ring of Death''", and by 2007, ''Xbox''<nowiki/>'s hardware engineers eventually discovered that the reason for it was a defect in the ''Xbox 360''<nowiki/>'s GPU.<ref name=":2">{{Cite web |date=December 13, 2021 |title=Power On: The Story of Xbox {{!}} Chapter 5: The Red Ring of Death |url=https://www.youtube.com/watch?~~v=z2d6IMBS8oY~~ |url-status=live |access-date=June 4, 2025 |website=YouTube}}</ref>

In 2005, Microsoft released the ''Xbox 360''. Not very long after, consumers started reporting problems with their consoles- three red flashing lights on the ring around the power button. This was coined by consumers as the "''Red Ring of Death''", and by 2007, ''Xbox''<nowiki/>'s hardware engineers eventually discovered that the reason for it was a defect in the ''Xbox 360''<nowiki/>'s GPU.<ref name=":2">{{Cite web |date=December 13, 2021 |title=Power On: The Story of Xbox {{!}} Chapter 5: The Red Ring of Death |url=https://www.youtube.com/watch? |url-status=live |access-date=June 4, 2025 |website=YouTube}}</ref>

For the first several months of this incident's height of prevalence in 2006, consumers had to pay to get their consoles fixed by Microsoft if the console was outside of its one year warranty. However, by September 2007, they chose to extend the warranty to three years from the date of original purchase, and refunded anyone who had previously paid to get this issue fixed.<ref>{{Cite web |last=Moore |first=Peter |date=2007 |title=Open Letter from Peter Moore |url=http://xbox.com/en-ca/support/petermooreletter.htm |url-status=dead |archive-url=https://web.archive.org/web/20071023004948/http://xbox.com/en-ca/support/petermooreletter.htm |archive-date=23 Oct 2007 |access-date=4 Jun 2025 |website=Xbox}}</ref> Judging from current and former employees' comments in the ''Xbox'' documentary, ''Power On: The Story of Xbox'', Microsoft seemed to have primarily done this to rescue the ''Xbox'' brand.<ref name=":2" /> Nonetheless, this was still beneficial to consumers who had made an investment in and enjoyed games from Microsoft's console.

@@ Line 12: / Line 12: @@
 ==Consumer impact summary==
+===Anti-competitive practices===
+*'''Monopolistic bundling'''
+:Forcing OEMs to preinstall Microsoft software such as Internet Explorer (IE) with Windows, making it difficult for competitors like Netscape to compete.<ref name=":0">{{Cite web |date=January 25, 2002 |title=Competitive Processes, Anticompetitive Practices And Consumer Harm In The Software Industry: An Analysis Of The Inadequacies Of The Microsoft-Department Of Justice Proposed Final Judgment |url=https://www.justice.gov/atr/competitive-processes-anticompetitive-practices-and-consumer-harm-software-industry-analysis |website=DOJ }}</ref><ref name=":1">{{Cite web |last= |first= |date= |title=Microsoft Antitrust Case |url=https://corporatefinanceinstitute.com/resources/management/microsoft-antitrust-case/ |website= }}</ref>
+*'''Exclusionary contracts'''
+:Blocking rivals' distribution channels by signing exclusive deals with PC manufacturers and ISPs. <ref name=":0"></ref>
+*'''Sabotaging competitors'''
+:Deliberately degrading interoperability of competing software (e.g., Java, ''Netscape'') with Windows. <ref name=":0"></ref>
+*'''Predatory pricing'''
+:Offering IE for free to undercut ''Netscape'', later ruled anticompetitive. <ref name=":1"></ref>
+===Cloud computing monopoly abuse===
+*'''Discriminatory licensing'''
+:Charging higher fees for running Windows Server on rival clouds versus Azure, stifling competition.<ref name=":2">{{Cite web |last=Browne |first=Ryan |date=December 3, 2024 |title=Microsoft faces £1 billion lawsuit in UK for allegedly overcharging rival cloud firms’ customers |url=https://www.cnbc.com/2024/12/03/microsoft-overcharging-rival-cloud-firms-customers-uk-lawsuit-says.html |website=cnbc.com }}</ref><ref name=":3">{{Cite web |last=Godoy |first=Jody |date=November 28, 2024 |title=Microsoft faces wide-ranging US antitrust probe |url=https://www.reuters.com/technology/microsoft-faces-wide-ranging-us-antitrust-probe-2024-11-27/ |website=reuters.com }}</ref>
+*'''Lock-in tactics'''
+:Making it costly or technically difficult for customers to migrate data from Azure to other platforms.<ref name=":3"></ref>
+*'''Settlements under pressure'''
+:Facing EU and UK lawsuits, Microsoft settled with some cloud vendors but retained practices criticized as unfair.<ref name=":2"></ref>
+===Anti-consumer software and hardware policies===
+*'''Forced online activation'''
+:Requiring internet connectivity to set up Xbox consoles or install physical game discs, even for single-player modes.<ref name=":4">{{Cite web |date=April 12, 2021 |title=DRM or Die. How Anti-Consumer Practices Became the New Norm and the Consumers Are to Blame |url=https://cgicoffee.com/blog/2021/04/drm-or-die-anti-consumer-practices |website= }}</ref>
+*'''DRM overreach'''
+:Xbox Series X/S games demand online verification for disc-based installations, rendering offline play difficult.<ref name=":4"></ref>
+*'''Recurring billing traps'''
+:Defaulting users into subscription auto-renewals while making cancellation processes opaque.<ref>{{Cite web |last= |first= |date= |title= |url=https://learn.microsoft.com/en-us/answers/questions/3869973/why-is-ms-software-so-predatory?forum=windows-all&referrer=answers |website= }}</ref>
+===Privacy and data exploitation===
+*'''Collaboration with surveillance'''
+:Working with the NSA and FBI to bypass encryption (PRISM program) and access user data (Skype, Outlook).<ref name=":5">{{Cite web |last=Milin-Ashmore |first=James |date=October 15, 2019 |title=Microsoft Alternatives Guide: How (and Why) to Avoid Microsoft |url=https://ethical.net/ethical/microsoft-alternatives/ |website= }}</ref>
+*'''Unauthorized data collection'''
+:Contractors reportedly listened to Xbox/Skype/Cortana audio without clear user consent.<ref name=":5"></ref>
+*'''Dark patterns in Windows'''
+:Manipulative UI designs to nudge users toward data-sharing opt-ins.<ref name=":5"></ref>
+===Ethical and legal controversies===
+*'''Censorship compliance'''
+:Removing content from Bing/LinkedIn to appease authoritarian regimes (e.g., China).<ref name=":5"></ref>
+*'''Military contracts'''
+:Developing ''HoloLens AR'' tech for the U.S. Army to "turn warfare into a video game," contrary to employee expectations.<ref name=":5"></ref>
+*'''Patent aggression'''
+:Threatening open-source projects like calling Linux a "cancer" and suing small entities such as MikeRoweSoft.com.<ref name=":5"></ref>
+===Market manipulation and stifling innovation===
+*'''Artificial price inflation'''
+:Overcharging consumers by $20–30 billion for Windows licenses in the 1990s by hiding costs in PC bundles.<ref name=":0"></ref>
+*'''Acquisition dominance'''
+:Buying competitors like GitHub, VS Code, and LinkedIn to absorb markets and limit alternatives.<ref name=":5"></ref>
+*'''Delaying competitors'''
+:Intentionally slowing development of rival products like IBM and Apple through contractual or technical barriers.<ref name=":0"></ref>
 ===Monopolization===
+*Exclusive licensing agreements with ''IBM'' and other PC manufacturers ensured that ''MS-DOS'' became the dominant OS.
-*Exclusive licensing agreements with ''IBM'' and other PC manufacturers ensured that ''MS-DOS'' became the dominant OS.<ref>{{Cite web |last= |first= |date= |title= |url=https://www.britannica.com/money/Microsoft-Corporation |website= }}</ref>
 *Priced ''MS-DOS'' significantly lower than competitors, making it the default choice for PC makers.
 *Launched ''Windows 1.0'' in 1985, as a graphical extension of ''MS-DOS''. They had over 90% of the PC market by the 1990's.<ref>{{Cite web |date=January 29, 2002 |title=Competitive Processes, Anticompetitive Practices And Consumer Harm In The Software Industry: An Analysis Of The Inadequacies Of The Microsoft-Department Of Justice Proposed Final Judgment |url=https://www.justice.gov/atr/competitive-processes-anticompetitive-practices-and-consumer-harm-software-industry-analysis |website=justice.gov }}</ref>
@@ Line 44: / Line 92: @@
 ===Xbox 360 Defect - The "Red Ring of Death"<!-- I don't know for sure if we should have a dedicated Company article for Xbox, or if we should just redirect red links for Xbox to this article (Microsoft). Personally, I think what they do is MS's responsibility because MS is the parent company, so Xbox's issues should be mentioned here. Either way- I'm just going to place this info here for now for folks to edit or change appropriately. -->===
 {{Main|Bumpgate}}
-In 2005, Microsoft released the ''Xbox 360''. Not very long after, consumers started reporting problems with their consoles- three red flashing lights on the ring around the power button. This was coined by consumers as the "''Red Ring of Death''", and by 2007, ''Xbox''<nowiki/>'s hardware engineers eventually discovered that the reason for it was a defect in the ''Xbox 360''<nowiki/>'s GPU.<ref name=":2">{{Cite web |date=December 13, 2021 |title=Power On: The Story of Xbox {{!}} Chapter 5: The Red Ring of Death |url=https://www.youtube.com/watch?v=z2d6IMBS8oY |url-status=live |access-date=June 4, 2025 |website=YouTube}}</ref>
+In 2005, Microsoft released the ''Xbox 360''. Not very long after, consumers started reporting problems with their consoles- three red flashing lights on the ring around the power button. This was coined by consumers as the "''Red Ring of Death''", and by 2007, ''Xbox''<nowiki/>'s hardware engineers eventually discovered that the reason for it was a defect in the ''Xbox 360''<nowiki/>'s GPU.<ref name=":2">{{Cite web |date=December 13, 2021 |title=Power On: The Story of Xbox {{!}} Chapter 5: The Red Ring of Death |url=https://www.youtube.com/watch? |url-status=live |access-date=June 4, 2025 |website=YouTube}}</ref>
 For the first several months of this incident's height of prevalence in 2006, consumers had to pay to get their consoles fixed by Microsoft if the console was outside of its one year warranty. However, by September 2007, they chose to extend the warranty to three years from the date of original purchase, and refunded anyone who had previously paid to get this issue fixed.<ref>{{Cite web |last=Moore |first=Peter |date=2007 |title=Open Letter from Peter Moore |url=http://xbox.com/en-ca/support/petermooreletter.htm |url-status=dead |archive-url=https://web.archive.org/web/20071023004948/http://xbox.com/en-ca/support/petermooreletter.htm |archive-date=23 Oct 2007 |access-date=4 Jun 2025 |website=Xbox}}</ref> Judging from current and former employees' comments in the ''Xbox'' documentary, ''Power On: The Story of Xbox'', Microsoft seemed to have primarily done this to rescue the ''Xbox'' brand.<ref name=":2" /> Nonetheless, this was still beneficial to consumers who had made an investment in and enjoyed games from Microsoft's console.