The Decoder: Is Windows XP Smarter Than You?

Remember in the anti-trust trial when Microsoft argued it did not have monopoly power because, if it did, the price of Windows would be $900? The company had an economist, numbers, fancy charts — the works. Though I thought the claim was garbage, they were discussing what "might have been," so I couldn’t conclusively disprove it.

But after working with Windows XP, I’m convinced Windows Media Technologies (WMT) will dramatically reduce competition among digital and streaming media technologies on the Windows platform and, over time, on other platforms as well. However, some industry experts, whose opinions I respect, strongly support Microsoft’s actions as fair competition, and I’ve been in the computer industry too long to say I’m definitely right about anything anymore.

So, I can’t prove a thing about XP’s WMT integration hurting the industry or consumers, but damn the torpedoes, I’m going to tell it like I think it is, and I expect you to listen up.Oh yeah, one more thing. I’ll be using fictional "voices" to pose some pro-Redmond arguments.

Voices of Indignation

The Voice of Innovation (VoI) chastises me, insisting, "Microsoft should be allowed to innovate by adding streaming media capabilities into Windows." I couldn’t agree with you more, VoI. Bundling a product means distributing it with another product, and that’s a generous and welcome gesture. On the other hand, commingling a product means intentionally and permanently "welding" it to many different places such that it cannot be removed or replaced without wrecking the entire product. For example, if a consumer couldn’t entirely remove IE without rendering Windows inoperable, that would be commingling.

In XP, there are no end-user options for removing, replacing, or choosing not to install Windows Media Player (WMP), Microsoft Movie Maker, Windows Media Rights Manager, the Media Guide in WMP, or the Radio Tuner in WMP. Delivering great products is a wonderful thing; going out of one’s way to revoke people’s freedom of choice is not. Doing both in one fell swoop — innovation, indeed.

The Voice of Legal Technicalities (VoLT) pleads a simple case: "Microsoft is not a monopoly; therefore, it can’t be accused of abusing monopoly power with XP’s WMT integration." Wait, Mr. VoLT — both a federal district court and the corresponding circuit court of appeals have unanimously found Microsoft to be a monopoly.

Next, the Voice of Competition (VoC) snorts angrily, "Microsoft will win because its products are better." Okay VoC, my imaginary acronymic friend, your argument is tricky. Microsoft does deliver great products that are often better than the competition. But having great products doesn’t exculpate the company from picking up market share through surreptitious means. We all know that products rarely, if ever, succeed on technical merit alone. High product quality proves nothing, and is a red herring designed to distract people from arguing about whether or not there was anti-competitive behavior. I won’t bite. And for the record, homogeneity aside, I think the media technologies in Windows XP are outstanding — great, great software.

The Voice of There Is Only Now (VoTION, pronounced "vo-shun") sounds off with a coy lilt of innocence, "WMT is not the product with the most market share, so why even worry about it?" Well, Messr. VoTION, let’s recap. In February of 1996, IE had 3 percent market share. Then Microsoft began to "innovate." Today, IE is ubiquitous. The media battle is all about the future — five, 10 or more years from now — and it is important to consider XP in terms of the leverage the WMT integration exerts when applied over time.

The Voice of Reason

My fear is that while we’re arguing about the difference between bundling and commingling, as well as other things, we’ll see digital and streaming media competition dry up. But don’t take my word for it. Do what Microsoft won’t let you do with its media technology on Windows XP. Decide for yourself.

Fortunately, with free software (i.e., Linux), open standards (i.e., MPEG-4), and the Internet, Microsoft cannot strangle the channels of distribution or send all competitors to cash-deprived graves. So, while anti-competitive danger looms large, there’s a chance competition will flourish in spite of it.