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It’s Unofficial: Microsoft Pays ASUS (Kickbacks) to Block GNU/Linux. Will EU Commission Step in?

Posted in Antitrust, GNU/Linux, Microsoft, Windows at 3:08 am by Dr. Roy Schestowitz

Laundered money

Summary: “Microsoft is actually paying for using Windows [...] Asus speaker confirmed this in Germany,” says an informant

According to a German Web site, some are being told that Microsoft has been paying ASUS per sale in order for them to install Windows XP and neglect or exclude GNU/Linux. There are some attempts to find the particular place where an official message from ASUS (probably E-mail) let it be known, right after someone had complained about the absence/price of comparable Eee PC with GNU/Linux. Details from the conversation are added below.

“The European Commission needs to intervene if this is provably true.”Considering the fact that less than a year ago an ASUS official said, “currently, we are closely tied up with Microsoft,” the above makes sense. The European Commission needs to intervene if this is provably true. This would mean that Microsoft is still breaking the law behind closed doors. It breaks the laws in some other areas (OOXML for example), but this area should not be neglected. Kickbacks are almost a euphemism for bribes, especially when you are a monopolist. Intel will soon be fined for it in Europe.

Is Microsoft paying OEMs to deny the entry of GNU/Linux into this market (or its survival there)? Could Microsoft be actually charging nothing for Windows XP on some devices? Not even $5? What about the cost of patents that encumber each copy of Microsoft Windows?

Appendix: Conversation log

*mib_24m6za (i=58418c01@gateway/web/ajax/mibbit.com/x-f986a58cab439fd0) has joined #boycottnovell Apr 22 19:46
mib_24m6za dang I want to relogin with my real nick but cant even when I delete all cookies…. Apr 22 19:46
mib_24m6za anyway, MS will get taught a lesson in Russia Apr 22 19:47
mib_24m6za simply put they will take the money but go on their way Apr 22 19:47
schestowitz Yes Apr 22 19:47
schestowitz Russia shows Microsoft’s weakness Apr 22 19:48
mib_24m6za I am quite sure this 300m are one of the worst investments every of Ballmer Apr 22 19:48
schestowitz It can’t make people pay Apr 22 19:48
schestowitz So it dumps Apr 22 19:48
mib_24m6za my only concern is that the 300m are no cash but some worthless Windows copies or training classes Apr 22 19:48
schestowitz They did something similar in other countries like India Apr 22 19:48
schestowitz Yes Apr 22 19:48
schestowitz It’s worthless to them Apr 22 19:48
mib_24m6za leaving a steaming pile of cash? Apr 22 19:48
schestowitz See the link that says “Under no circumstance lose to Linux” Apr 22 19:49
schestowitz If Linux wins they get $0 Apr 22 19:49
mib_24m6za that was Munich… my home town :-) Apr 22 19:49
schestowitz So they might as well give Windows+office for $0 Apr 22 19:49
schestowitz Basically, here’s how it goes Apr 22 19:49
schestowitz One might say, Linux has no chance Apr 22 19:49
schestowitz Because Microsoft competes with $0 Windows Apr 22 19:49
schestowitz But that’s nonsense Apr 22 19:50
schestowitz Because sooner or later that becomes the price of Windows Apr 22 19:50
schestowitz See the price of XP on subnotebooks Apr 22 19:50
schestowitz About $5 Apr 22 19:50
schestowitz because of LINUX Apr 22 19:50
mib_24m6za MS is actually paying for using Windows – said that already a 100 times… Asus speaker confirmed this in Germany Apr 22 19:50
schestowitz So they won’t be profitable for much longer Apr 22 19:50
mib_24m6za they charge 15 USD for Win XP Home but pay a per unit kickback Apr 22 19:50
mib_24m6za for every netbook sold Apr 22 19:50
schestowitz Ballmer has just taken a cheap shot at Oracle’s purchase of Sun saying it’s a sw company buying a hw company Apr 22 19:50
schestowitz He said MS would never do such a thing Apr 22 19:51
schestowitz But! Apr 22 19:51
mib_24m6za which is higher than the licence fee Apr 22 19:51
schestowitz Their sw becomes worthless Apr 22 19:51
schestowitz In the cost sense Apr 22 19:51
schestowitz So they tried to sell hw without success Apr 22 19:51
schestowitz Notably Zune and Xbox Apr 22 19:51
schestowitz They lost ?$billions Apr 22 19:51
mib_24m6za hey – I own a MS mouse – the best MS product I ever used :-) Apr 22 19:51
mib_24m6za mib_2kldw9 mib_bs9bo5 mib_ey0o48 mib_nhm138 mib_vfvtjy Apr 22 19:51
schestowitz mib_24m6za: can you get me that link? Apr 22 19:52
schestowitz Even in Deutsch? Apr 22 19:52
mib_24m6za yes they are shoveling money in thewir commercial grave so to say :-9 Apr 22 19:52
schestowitz I need to use that Apr 22 19:52
schestowitz mib_24m6za: please please find me that reference Apr 22 19:52
schestowitz From ASUS Apr 22 19:52
schestowitz I’d re-cite it a lot when the issue comes up Apr 22 19:52
mib_24m6za let me look this up it is buried somewhere here http://www.eee-pc.de/ Apr 22 19:52
mib_24m6za or should be there Apr 22 19:52
mib_24m6za was a user who mailed Asus why no Linux netbooks Apr 22 19:53
schestowitz That would change the whole way we think about this issue Apr 22 19:53
schestowitz That’s literally buying one’s market share Apr 22 19:53
mib_24m6za and they answered very frankly cause they get kickbacks :-) Apr 22 19:53
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