California sues Microsoft for antitrust--again

California is trying to make Microsoft pay--again.

Five state counties and two cities have filed a class-action lawsuit against the software giant for using its monopoly power to deny government agencies free choice in software products and charge high prices. The legal action, filed by the city and county of San Francisco, said that Microsoft's tactics caused harm to government users of its Windows operating system and Word and Excel software.

"It's anticompetitive, it's predatory, and it denies consumers, and in this case taxpayers, the benefits of innovation that a free marketplace should provide," Dennis Herrera, attorney for the city of San Francisco, said in a statement.

The lawsuit follows successful class actions against Microsoft in several states, including a $1.1 billion award to California consumers. The same law firm that argued that civil action is representing California counties and cities in the latest legal maneuver. The lawsuit, which could recoup millions of dollars for the California government, also comes as the state took out loans to compensate for a $15 billion budget shortfall.

Microsoft had not seen the complaint against the company, but a representative said Microsoft's policies have been fair.

"We value our relationship with these cities and are grateful for the opportunity to provide them with software at very reasonable prices," said Stacy Drake, a spokeswoman for the Redmond, Wash., company.

The city and county of Los Angeles, Santa Clara County, San Mateo County and Contra Costa County are all taking part in the class action.

"When the (previous California) settlement was announced, we had governmental agencies asking for their part of the recovery," said Daniel Furniss, litigation partner for Townsend, Townsend & Crew, the law firm that represented California consumers in the previous case and that filed the current class action on the part of the government agencies. "Having seen what has happened nationwide, they have a feeling that money is owed."

While the previous case has taken more than five years to wend its way through the courts, Furniss said the time does not make much difference to the legal standing of the complaint.

The lawsuit also comes as Microsoft is facing increased competition by open-source groups and their community-developed software, such as Linux.

A body of independent auditors and experts recommended this month that California consider open-source software and voice over Internet Protocol telephony as two measures to cut costs. The suggested measures are a small part of the voluminous California Performance Review, released Aug. 2.

Open-source software and the Linux operating system are widely considered the most serious competitors to Microsoft in the operating system and enterprise software market.

[unknown unknown]

Threaten to switch to Linux...

Microsoft has given large discounts to cities etc that threaten to switch to Linux and other open source software. As for Word and Excel you could very easily use Open Office. Short of signing a deal to exclusively purchase from Microsoft I don't see what's stopping California cities and government from consider other software. If they did sign such an agreement then they're as much to blame for their problems as Microsoft. They should also fire whoever made the recommendation to enter such an agreement.

I am behind California all the way.

To Californian: Good luck, I hope you win this case. At least you have the Governator on your side.

[ubergeekster]

Scared to change, happy to sue.

While everyone knows Microsoft has been
overcharging everyone for insecure products for
years it is mildly pathetic that the way they chose
to fight it is to sue rather than change. There
are alternatives, they are more secure, cost less
and work better. So why use something with so
many problems?

The average brand new, out of the box, windows
system won't last long enough on the internet to
even get all of the holes patched before its
infested with virus's and worms. Using IE is the
quickest way to harvest a huge collection of
spyware and this only happens with windows, no
other OS.

Why would anyone want to run their business on
it? Why? Anyone building new IT systems is not
doing their Due Diligence if they are deploying
windows inside of any corporation or government,
period!

Convert or suffer, its as much your fault as it
is theirs since all of these things have been
known now for a long time. yet everyone still
uses Internet Explorer and insists on running
windows. Only one who prospers with this is the
lawyers.

Their is an old saying, people can only walk on
you if you keep laying down in front of them.
Tnt

I don't get it....

Microsoft makes a good product... if they want to, they can use OpenOffice on windows... no one is forcing them to run Microsoft Office, but they don't like the cost associated with it, and this is somehow Microsoft's fault?

Grow up and pay for it like everyone else in the world.

[sd.lawrence]

Let the California crybabies go to another software vendor.

I think Microsoft is getting a lot of false blame laid on them. After all, was Califoprnia forced to buy their software from Microsoft?? California is just looking for another way to pay the bills. It's not Microsoft's fault California is in the shape it's in!!!! Tell California to go fly a kite!!!!!!!!!!! everybody - off Microsoft's back! If it weren't for them, technology would not be what it is today!!! Stan Lawrence

[warhog72]

Stan the Man and the Shrill MS Wonkers

Stan, you're pretty cool. I'm gut-sick of all of the whining, wanking, wonking anti-MSers out there, and it's exactly as you say- computing was put into the hands of the average person by MS. As best as I can figure, the "old-timers" who had computing all sewed up for themselves got on a hate-binge with Mr. Gates because he opened up their secret ways, which they had all to themselves, plus they didn't have enough sense to take the ball and go like he did, so they're doubly mad, and jealous to boot. Stupid-***** better be happy there are Corporations like MS to give 'em jobs and pay taxes into this country, man, everything is moving out of this country, and we are in a hurt that these folks do not seem to understand. They'll whine about outsourcing while damning MS and Bill Gates. I know MS might not be a role model for the "Good Folk", but historically and realistically, no large, successful company ever "played by the rules" and became a success. That's what it's about, and that's what makes a winner, not a whiner. There'a lot of Fairy World Folk out there, who think "life should be fair" and we should all get along, and the playing field should always be equal, and lots of other niceties that have never worked and never will on this Earth. Unless they hire the almighty lawyer, the answer to all of man's problems, sue them until you win, and then sue them some more after you win, as long as you get your way, no matter the social cost. When CA slides into the ocean, we'll know why: They sued God and he got tired of that crap and dumped 'em. Take care Stan. Thanks.

[HughT]

Good for California

There is no question that the allegations against Microsoft are true. I hope they get what they deserve.
On a positive note, if Microsoft really wanted to serve its customers rather than simply gouge them they would
1. unbundle their browser, email client and multi-media components from the OS and simply offer the OS alone.
2. Price their products to make a reasonable profit but not continue to gouge simply because they can.
3. Cooperate with open source developers with a view to providing a better product and service to the consumer.
If they cared for anything other than making a few more billions off the consuming public they wouldn't have to be told things like this and they wouldn't be facing continuous law suits.