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February 18, 2009 10:17 AM PST

Don't expect Obama to object to Windows' browser

by Ina Fried

While European regulators are showing a continued interest in regulating Microsoft, the Obama administration may have its sights set elsewhere.

In a speech in June, the woman nominated to be the new administration's antitrust chief said that Google, not Microsoft, is the big competitive worry.

"For me, Microsoft is so last century. They are not the problem," Christine Varney said at a June 19 panel, according to Bloomberg News, which unearthed the comments this week. In the same speech, Varney said that Google poses a threat because it already "has acquired a monopoly in Internet online advertising."

Obviously, those comments were made long before Obama's victory and her nomination, so it's not exactly administration policy. That said, it seems unlikely that Obama would have picked her if he was looking for someone to go after Redmond.

Varney, who has been working as a partner at the law firm Hogan & Hartson, did not return a call from Bloomberg News seeking comment. White House spokesman Ben LaBolt told Bloomberg News that the president nominated Varney "to vigorously enforce the law" and "is confident that she can do so in a fact-specific and evenhanded way with every matter she will face."

It's not as if Varney is a blind Microsoft loyalist, either. Bloomberg noted that Varney once lobbied the Clinton administration on behalf of Netscape urging antitrust action against Microsoft.

But, Varney said, times have changed. She pointed to Google as the current threat with its monopoly in online advertising. That position, though lawfully obtained could give the company too much control over the emerging world of cloud computing, she said in the June speech.

"When all our enterprises move to computing in the clouds and there is a single firm that is offering a comprehensive solution," Varney said, again according to Bloomberg. "You are going to see the same repeat of Microsoft."

Unfortunately for Microsoft, Varney's updated world view has not taken hold in Europe, which last month issued a preliminary finding that the inclusion of a browser within Windows violated its antitrust laws. Microsoft cautioned in a regulatory filing last month that Europe might force Microsoft to distribute multiple browsers with Windows and perhaps even disable some Internet Explorer code if a user selects a different browser.

During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina.
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by Super2online February 18, 2009 10:41 AM PST
Hallelujah! People are finally waking up to the threat that Google poses.
Reply to this comment
by SteveW928 February 18, 2009 11:48 AM PST
I don't disagree that an eye should be kept on Google.... as with on any huge company with so great a share of some market. But, AFAIK, Google's business practices have been above-board. M$ largely illegally used its monopoly to cheat its way to where it is today. That is a BIG difference. It isn't a crime to be a monopoly, just to use it in an illegal way.
by CrashPad63 February 18, 2009 1:30 PM PST
Steve.... Above board??? Look into the deal with yahoo last summer. Intentional use of a deal, never intended to follow through, to stifle a deal between MS and Yahoo to challenge Google. Ohhhh Google is just as evil as any monopoly. Dont be naive.
by Maccess February 18, 2009 11:32 PM PST
"For me, Microsoft is so last century. They are not the problem," Christine Varney said at a June 19 panel, according to Bloomberg News, which unearthed the comments this week. In the same speech, Varney said that Google poses a threat because it already "has acquired a monopoly in Internet online advertising."

Google has a dominant share of online advertising, but can't be called amonopoly because no one is compelled to buy ads in Google, other than that they offer very competitive terms and reach because of their relatively advanced technology and worldview that others seem to have missed.
by Dalkorian February 19, 2009 9:19 AM PST
ROFL - thanks CrashPad63, comparing the "evils" of Google to the evils of M$ is just laughable. Tell your doctor to increase your dosage, the meds aren't working yet.
by CrashPad63 February 20, 2009 12:52 PM PST
Dalkorian, Spoken like a true arrogant fanboi.
Maccess, Nobody is "forced" to buy Windows either. But MS was convicted as such. Now look at the Apple ecosystem, now that is being forced. Cannot pick your hardware. Cannot pick your OS. Cannot pick your upgrades, Seems pretty closed minded doesnt it? When comparing it with the MS ecosystem.
by SteveW928 February 22, 2009 1:32 PM PST
@ CrashPad63 - I wish the Microhoo deal had went through... two incompetent companies married... a match made in heaven.

As for being 'forced' to buy Windows.... you have to look at a bit bigger picture than your choice in boxen. If you buy a Ford, you largely have to buy Ford parts... but Ford doesn't decide that a Chevy can't drive on the highway or not. Yes, if I buy Apple I have to buy, at least initially, their hardware (then all the peripherals are my choice). However pre-trials, M$ was saying an Apple or Unix user, or someone using something other than IE couldn't really surf the Internet. They were saying that if you want to work with anyone doing word processing, you had to own a copy of Word. They were forcing hardware manufacturers to only offer machines with Windows (not their own brand of PC, which, like Apple, would have been totally legitimate). They have been found guilty of making code to break their software and cause OS issues on what they provided to non-Windows platforms. The list goes on. Proprietary isn't the problem.... abuse of monopoly is. If M$ made a PC, put Windows only on it, and made apps which only ran on this PC... I'd have no complaints at all. It is when they start messing with the entire rest of the computer market that I take issue.
by Penguinisto February 18, 2009 10:53 AM PST
Good heavens... first the RIAA, now this.

How many times has this man been bought and paid for?
Reply to this comment
by MaggieRed February 18, 2009 1:13 PM PST
We continue to find out don't we.
by russkeller February 18, 2009 11:01 AM PST
"For me, Microsoft is so last century. They are not the problem,"

WOW, that's awesome. A problem that was never dealt with last century. I guess Microsoft sure paid off the right people since they're the ones supposedly competing with Google.
Reply to this comment
by SteveW928 February 18, 2009 11:34 AM PST
Couldn't have said it better.
by t8 February 18, 2009 1:52 PM PST
I agree.

Even though a comment like that shows that Microsoft is less relevant (which is true) it also says 'crime pays'. Time should never wipe out a crime. If Microsoft ultimately profits from illegal behavior, then they are setting the precedent for others to follow. Abuse your monopoly and you can ultimately profit from doing so.
by Hep Cat February 18, 2009 11:02 AM PST
Might be nice if DOJ or Congress built and enforced laws to keep companies from preemptively claiming ownership of intellectual property. Not sure why one company is targeted over another - they all do this as a condition of using their "cloud" services.

Maybe something like the "Fair EULA Act". Yeah, right - that'll be the day.
Reply to this comment
by sodablue February 18, 2009 11:22 AM PST
From most accounts, Mozilla now has around 25% market share for browsers. Why is this?

Firefox works better than Internet Explorer.

The same reason IE took market share from Netscape.
Reply to this comment
by SteveW928 February 18, 2009 11:38 AM PST
@ sodablue - "The same reason IE took market share from Netscape."

Umm... NOT! Were you around back then? What M$ did was to give it away for free with a bunch of non-standard HTML calls. The reason it 'worked better' is because M$ wasn't following the HTML standards and through 'free-ness' was able to swing many web-site builders to use its tools. They basically used their monopoly to cheat and put actual Internet apps out of business with their proprietary 'faux-web' app.
by kcotham February 18, 2009 11:44 AM PST
And the Safari and Opera are faster and more stable than Mozilla. Micro$oft is an evil corporation churning out 3rd rate products, strong arming the competition. They haven't had an original idea since their inception. What they can't steal, they buy up and and Micro$oftise it (make it suck).

The only thing that will ever really take them down is the global population to wise up and use alternatives. But since most people are ignorant about computers, or completely apathetic, that will never happen. So, we need governments to step in. They are FINALLY putting the squeeze on Micro$oft in Europe. We need them to do it here too. For starters, the U.S. Government needs to phase out Microsoft products, moving to open source perhaps. How can the US Government go after Micro$oft when they are one of its biggest customers?!

BSD, opensolaris, Darwin, Linux, take your pick. Hell, use Mac OS X, anything but Windows.
by ducttape36 February 18, 2009 11:50 AM PST
mozilla was created by the netscape folks was it not?
by Mark_Anderson February 18, 2009 11:57 AM PST
Actually Steve, Netscape *******************. IE was far better just as FireFox is far better than IE and has over 20% of the market - and rising - despite not being bundled with Windows.

Steve: Another reason not to take anyone who writes Microsoft as M$ seriously.
by kcotham February 18, 2009 12:07 PM PST
Mark_Anderson,

Using the $ in text referring to Microsoft is a typographical tool to show the disgust with their strong-arm, greedy, monopolistic motives.

Ad hominem attacks are not allowed on this site as per the terms of use statement. Pleas refrain from using them.
by t8 February 18, 2009 1:55 PM PST
Wow that is pretty ignorant.
Netscape became a lesser browser only when it was realized that IE was growing faster and it really seemed pointless to compete. IE was gaining market share even when Netscape was better. It didn't really make that much difference how good or bad Netscape was, IE was the browser of choice for newbies because that is what they were given in their OS.
by Vegaman_Dan February 18, 2009 2:01 PM PST
@kcotham:

I agree- everything should be free and open. Any instance of resistance should be squashed. All will be open! All will follow the one true path! Nobody shall stop us from our goal of supremacy!

Oh, and we can all wear arm bands and goose step with the rest of our brothers as we make the government destroy all competition and freedom of thought.


Wow. I do hope you see the irony and satire here.
by t8 February 18, 2009 2:10 PM PST
@ Vegaman_Dan

I see the irony but you can make the same argument for Microsoft.
"All should be Microsoft" which is true when it comes to desktop computing.

However if it seems that people have to force people to use something, then at least free and open is better than products from a greedy monopolist who creates third rate products.
by Mark_Anderson February 18, 2009 2:46 PM PST
"Wow that is pretty ignorant.
Netscape became a lesser browser only when it was realized that IE was growing faster and it really seemed pointless to compete."

Really? I was there. Netscape was rubbish. It didn't get any worse because IE became popular, it was rubbish in comparison to 4.0 because they kept ballsing up the features on it . And, to make things worse, they still wanted to charge for it!

Don't call people ignorant if you don't know what you're talking about, son. It was good riddance to bad rubbish.
by mattyc09 February 18, 2009 5:59 PM PST
@kcotham, the dislike for people using M$ for Microsoft is widespread, it is hardly a " a typographical tool to show the disgust with their strong-arm, greedy, monopolistic motives". It is just trollish.

http://www.penny-arcade.com/comic/2002/7/22/ms/
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by kcotham February 18, 2009 11:38 AM PST
Varney is on the payroll at Micro$oft, no doubt. Micro$oft is definitely the problem. The EU is not going after them for giggles you know. Politics as usual, bought and paid for by the corporations. We desperately need a third party in congress to keep the other two honest. All the Democrats and Republicans are interested in is taking care of their own or screwing the other part. On the rare occasion they work together, they do it to screw the American people (usually on the behalf of their real bosses, the corporations).

Wise up Varney, and you too America!
Reply to this comment
by SteveW928 February 18, 2009 11:45 AM PST
Yep.... anyone who thinks Obama is different is just kidding themselves. He's 'blue' through and through... even more so than the Clintons. 'Change' and 'Hope' are just ad slogans borrowed from Reagan style image and publicity. He's basically just an ultra-liberal Democrat marketed well. I'm sure we'll see 'change', just not the kind we're wanting... until he milks us all he can and we get 'change' again back to the Republican idiocy. What I find most sickening is his comparisons to Lincoln... Lincoln must be rolling in his grave. There has never be a more non-Lincoln like president than Obama. He is a polar opposite from what Lincoln stood for.
by Mark_Anderson February 18, 2009 11:57 AM PST
Do you two have your own tinfoil hats or do you share?
by kcotham February 18, 2009 12:01 PM PST
Mark, how is what I said crazy, as you implied? Do your research, look at the facts.
by bj1126 February 18, 2009 1:14 PM PST
"Do your research, look at the facts."

Common line from all conspiracy theorists. Let me guess the Jews are behind it all right? lol
by CrashPad63 February 18, 2009 1:41 PM PST
No Ballmer did it, in the study with a pipe wrench!!! You putz's need a reality check. Xfile ended in the 90's
by Vegaman_Dan February 18, 2009 2:03 PM PST
The conspiracies... they are everywhere! Don't let the aliens get to you too. Make sure you have your tinfoil hat on, spray yourself with fox urine to scare away Bigfoot and by all means, don't ever step on my blue suede shoes.
by istill316 February 18, 2009 8:35 PM PST
Or maybe the EU is just attacking Microsoft because they're short on cash?
- Microsoft can easily afford a few hundred million, as opposed to bein banned from Europe
- the EU member countries only half support it, especially given the many that don't like it
- the EU has little real power: it just wants to be like the United States, but get there without any hard work or producing any new products or anything of the sort. It's just a whiney wannabe, kinda like the UN.
by Dalkorian February 19, 2009 9:26 AM PST
by CrashPad63 February 18, 2009 1:41 PM PST
No Ballmer did it, in the study with a pipe wrench!!! You putz's need a reality check. Xfile ended in the 90's

----------------------------------------------------------------------

I want to believe.
by SteveW928 February 19, 2009 4:15 PM PST
Whatever you folks say... the FACTS are that M$ WAS convicted.... and they DID NOT pay the penalty for it. Interpret the rest however you like.
by kcotham February 19, 2009 6:37 PM PST
How anything I said can be misconstrued as conspiracy rhetoric, I don't see it. I see how it can be seen as bitter, but it's mostly a realistic observation of politics over the past 20 years. Politicians, almost without exception, can not be trusted. It was true in the time of Rome, it's true today.
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by greatweirdo February 18, 2009 11:40 AM PST
'Google poses a threat because it already "has acquired a monopoly in Internet online advertising."'

Hmm...funny. I was under the impression that Google was only doing textual advertisements. When did they suddenly get involved with Flash Advertisements? Image Advertisements? Silverlight Advertisements? Streaming Video Advertisements?

How can they have a monopoly over something so broad as "Internet Online Advertising" if they're only generating ads via 1 medium (text)?
Reply to this comment
by bj1126 February 18, 2009 11:51 AM PST
You are kidding right? You don't know all of what Google offers or owns in the advertising realm?
by t8 February 18, 2009 2:06 PM PST
They bought Double Click the biggest banner advertising network. They are often flash ads too.
by Vegaman_Dan February 18, 2009 2:12 PM PST
Google currently offers a lot of site-based advertising solutions including banner ads, flash based content, and inline streaming through their own and other marketing arms. The text only based areas you see are just in Search or as a small portion of their overall presence.

They even got their ads finally going in YouTube.
by kcotham February 18, 2009 11:51 AM PST
Once again, because Varney, and the majority of people using the Internet have no idea there are other search engines out there, other web applications, etc. They only go after what is getting the most hype. You have a bunch of people in Washington that are lawyers by training, that couldn't even set up their e-mail client without calling in someone from IT. How in the world are these people qualified to make decisions on technology policy?!?!?
Reply to this comment
by Seaspray0 February 18, 2009 12:08 PM PST
Same thing for the EU. How in the world are they qualified to make decisions on technology policy?
by istill316 February 18, 2009 8:38 PM PST
Or anything, for that matter?
by jonathan0766 February 18, 2009 12:11 PM PST
Google has nothing to fear from the Obama administration. Al Gore is a high level advisor to Google, Eric Schmidt was an important advisor to the Obama campaign and almost became tech czar, and the Google camp itself played a very important role in Obama's election (from money donated, to a few employees from Google that spearheaded Obama's tech in his campaign). That having been said, I'm sure the Justice Dept. will flex its muscles and pose as it always does.
Reply to this comment
by AbuLafya February 18, 2009 3:27 PM PST
Google cannot possibly have a monopoly on cloud computing. Microsoft and in other company are free to build their own. In many cases, customer loyalty is close to 0 and you don't even have to build your own, you can pay to use someone else's.
Microsoft, on the other hand, still have a monopoly on Windows, IE and Office. They recently cheated their way to make OOXML a standard.
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by mattyc09 February 18, 2009 5:54 PM PST
This is referring to advertising rather than cloud computing for the most part. Also other companies are free to build their own operating system... I don't really think you know what you are talking about. Obviously Microsoft would have a "monopoly" on Windows, IE, and Office because those are their products. Where you expecting them to hand them to another company or something...? I think you mean have a monopoly WITH, and even that is less true now. Lots of *nixish based operating systems/distros have been gaining steam (Ubuntu and OS X would be the leaders I imagine). Firefox, Chrome (Google's own), Opera, and Safari exist on the browser front. OpenOffice and iWork exist as counters (though not fully) to Office. About the only iffy thing Microsoft does is get Windows bundled in with PCs.
by tm_anon February 18, 2009 10:38 PM PST
@mattyc09

If by iffy, you mean completely unethical to the point it should be the real target of the EU rather than having a browser bundled with Windows, then I completely agree.

I'd rather see choice from the very beginning. The online world is not one size fits all, neither is the software one. Freedom of choice is a very precious freedom and should be protected.
by SteveW928 February 19, 2009 4:20 PM PST
@ AbuLafya - very true... IE integration with Windows and such are just the tip of the iceberg of the problem. Office is a HUGE part of the problem. At least with the court cases and such... they have had to delay wiping out compatibility with their file formats for quite a while. That is probably the one thing that has allowed some competition recently. While it is very easy to escape using Windows, it is not so easy to escape having to read a .DOC file. I had to purchase a copy of Word to use as a 'translator' even though I never actually use it as my word processor. The Office strangle-hold is really about all keeping M$ afloat.
by Nataku4ca February 18, 2009 6:59 PM PST
Hmm, just one comment

I was there when netscape and ie were battling, and honest to god, i hated netscape and its not like now when browsers were free for download, the extra cost brought me nothing more useful.

Even if ie was not bundled back then eg. need to purchase, i would still stay away from netscape if they were the same price.

really, netscape would've done more horrible things imho like ms.

i use opera now, got too used to mouse gestures now im having a hard time trying to use other browsers lol
Reply to this comment
by istill316 February 18, 2009 8:40 PM PST
Amen! Even when Netscape was free, it sucked. SOOOO SLOW...
by brickman5721 February 19, 2009 12:00 PM PST
I can't wait until I can "compute in the clouds". Sounds liberating. Seriously, people who don't understand what they're talking about shouldn't be allowed to speak.
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About Beyond Binary

During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft.


Beyond Binary is a look at how technology is changing our lives and the people behind all that life-changing stuff, with an extra emphasis on that which emanates from Redmond, Wash.

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