Microsoft Fine of the Week: $11 Million for Office Price Fixing
Posted 04/14/09 at 04:30:10 PM by Andy Salisbury
Comments
Print
Email
$11.8 million, to be exact! Microsoft’s shenanigans have gotten them into a legal squeeze with Bundeskartellamt, an independent federal authority assigned to the Federal Ministry of Economics and Technology in Germany.
According to a report filed by Bundeskartellamt, “The product in question was heavily advertised in the autumn of 2008 in stationary retail outlets. Amongst others, a nationwide active retailer advertised the product with financial support from Microsoft. Even before the launch of the advertising campaign in mid-October 2008, employees of Microsoft and the retailer in question had agreed on at least two occasions on the resale price of the software package 'Office Home & Student 2007’.”
Sadly, price fixing has become common amongst larger companies as a way for them to show off their financial prowess (most notably amongst memory companies, who have been known to set industry-wide price points).
According to Microsoft spokesman Jack Evans, “We will use this case as an opportunity to review our internal commercial processes and ensure that we are in full compliance with German law.”
Nice blanket statement, Jacky boy.
Image Credit: Microsoft
It doesn't make much sense,
Submitted by shellpc on Tue, 04/14/2009 - 11:55pm
It doesn't make much sense, but could they be accusing them of paying off retailers to not actually compete with one another by offering the same price?
I don't see how MIcrosoft would come out ahead on such a deal though. Plus MSRP is usually just a guideline, actual prices tend to vary at release and vary even more so as time goes by.
As for the console to pc price comparison - from what I've heard developers/publishers have to pay the console companies royalties to publish games on their systems so the royalty fee is factored into the final price of the game and the industry has agreed on a $60 standard is all.
What I'm getting at is the
Submitted by Keith E. Whisman on Wed, 04/15/2009 - 11:59pm
What I'm getting at is the very thing you just stated. They set a price standard. That is price fixing. All or at least the big titles will cost $60bucks. That is price fixing. All the stores sell these games at close to that price. There are many producers of games. They release their games and they all get pretty much the same price label. That is price fixing. That is anti-competitive.
So the console game producers are more guilty of price fixxing than Microsoft with it's Office product and who did they go after? They went after Microsoft because Microsoft is the big cow that is used to getting screwed over and nobody really cares. I used to be a trucker and I have to tell you that each state has Troopers out there that are trained to rob each and every trucker they can. They look for the slightest infraction and let me tell you there are alot of infractions on the books for the troopers to get you at. It's not about safety or anything like that. It's about money. Each state looks at a trucker as a prostitute and the Troopers and the DOT are the pimps while the shippers are the Johns. The shippers pay the truckers (the prostitutes) to move products. The states want that money so they send out the troopers (the pimps) to get it from the ho's I mean the truckers. And the pimps are going to get that money.
That's the way all these countries see Microsoft as one big as ho that has worked us johns for our cash now the countries (the pimps) want that money. I'm just hoping Microsoft doesn't pay it and appeals the dumb as judgement.
Submitted by shellpc on Thu, 04/16/2009 - 1:45am
Well, the whole thing doesn't make much sense and I hope Microsoft doesn't have to pay.
But with the console issue, if anyone's guilty of pricefixing its the console makers for demanding royalties that force the producers to jack up prices and that does include Microsoft.
Submitted by BaggerX on Wed, 04/15/2009 - 6:30am
I think Apple has demonstrated that MSRP is enforceable. Nintendo too.
Submitted by shellpc on Wed, 04/15/2009 - 8:58am
Games at retail tend to lose value and eventually wind up in the bargain bin. Best Buy's been known to price software and I think even their music cds at a loss just to lure customers into the store. Bookstores often have sales on books. I've even seen special sales on the day of a new release.
Submitted by Keith E. Whisman on Tue, 04/14/2009 - 4:59pm
You want price fixing I'll show you price fixing. Just goto WalMart and look at the Xbox, Xbox 360, PS2, PS3, PSP and Computer Games. Notice how the prices for Console games are almost always $59dollars and PC games are almost all $49dollars. Not all games are made by the same producers and selling these games at the same exact price for the majority of games is awfully fishy.
There are thousands of things like that, that appear to be suspiciously fixed.
Submitted by Keith E. Whisman on Tue, 04/14/2009 - 2:43pm
Hold on.. How can Microsoft be fined for fixing the price of it's own product? Now if Microsoft had gotten together with other Office Suite producers and agreed to sell their product at or about the same price as Microsoft then that is price fixing.
I think that Microsoft should not pay this fine and appeal the judgement.
This is like me selling a knife that I make for $5.00 and then being fined for price fixing. Just because I decided to sell my product for $5 dollars? It's my product and I will sell it for whatever price I want to. That is not price fixing because I did not make any deals with other producers of knives.
I would refuse to pay the fine and I would sue the locality that accused me of price fixing to prove that I was engaged in price fixing. I would sue for Libel.
Office is Standard?
Submitted by Havok on Tue, 04/14/2009 - 4:15pm
Maybe they're talking aboutthe massive price difference between Home and student and Standard.
Example: Where I work Office Standard (ya know, Word, Excel, Powerpoint, Outlook) = about $498.84. Home and Student with the purchase of Outlook seperate (which totals Word, Excel, Powerpoint, Outlook AND One-note) is 149.99 + 149.99 = about $300.00 before tax. That's a TWO HUNDRED dollar mark up on one program less! Not to mention one DVD less...
I do agree with you though that it is their product; they can mark up or down as much as they want. It's not like Corel is competing any day soon...
OMGWTFBBQ
Must Read Articles
Feature
Review
Feature
Feature
Feature
This Month's Issue
FEATURE How to Get FREE Programs, Services, Software & MoreFEATURE Digital Photo Printer RoundupHOW TOBuild a 3D CameraFEATUREDIY Arcade PCWHITE PAPERHow TRIM Works
Technology News
Computer Cooling Fans
Computer Cases
PC Game Controllers
PC Games
Computer Hardware
Headphones
MP3 Players
Stream Video
Computer Mouse
Monitors
Motherboards
NAS Storage
Networking
Laptop Computers
DVD Burner
Digital Cameras
Portable Storage
Computer Accessories
Smartphone
Antivirus Software
Sound Cards
Speakers
Computer Systems
Thumb Drives
Video Cameras
Video Card Reviews
Water Cooling
Gadgets
- Keyboards
© 2009 Future US, Inc. All Rights Reserved.