The Fair Trade Commission has decided to accept Microsoft Corporation's request for an administrative settlement. The Consumers' Foundation (消基會) has urged the company to show its sincerity by lowering software prices. But no matter what kind of administrative settlement is reached, price cuts are not the central issue.
The commission conducted its investigation into Microsoft mainly because of consumers' backlash against the Ministry of Justice's major anti-piracy crackdown in May. Many consumers believed that Microsoft's software prices were too high and were turning to pirated copies. The company then started to force consumers to buy authentic software by means of its monopolistic advantages.
There are three paradoxical issues in relation to Microsoft that consumers need to be aware of.
First is whether we really need Microsoft at all. Imagine that the Microsoft Office software package were a luxurious, multi-functional automobile. Would it be necessary to drive it to the grocery store next door just to buy a loaf of bread? The fact is that since pirated software is ubiquitous and cheap, many of us have simply installed Microsoft software without evaluating our needs.
In fact, there is a vast array of shared or free software that can be used instead of Microsoft's products. When the user does have to pay, the prices are much lower than Microsoft's. It is misguided simply to demand that Microsoft lower prices for products capable of doing far more than we need them to do.
Second, price cuts alone will aggravate the problem. Low-priced Microsoft software will simply help the company dominate the software market, which is no good for the development of Taiwan's software industry. The popularity of Microsoft products will further distort the public's sense of "open standards," mak-ing Microsoft products appear to be the market standards. Microsoft's "closing-software" policy and its tough pricing methods are not just employed in Taiwan.
To avoid overdependence on Microsoft, many countries now encourage the use of open-source codes. Microsoft launched a controversial software subscription program this year, in which subscribers must pay an annual fee in order to enjoy upgraded services. This program has triggered much criticism from US companies. Many US media have also attacked it by giving extensive coverage to plans designed to restrain Microsoft.
Taiwan's demand for price cuts might sound good for customers, but it would actually damage the entire market, turning Taiwan into Microsoft's fiefdom.
Third, open standards must be adopted in order to loosen Microsoft's grip. The company's products are mostly produced in exclusive, closed formats. The recipient of a Microsoft file cannot read the contents without a Microsoft-compatible product. Exclusive formats can only serve to widen inequalities in the digital society between those who can afford Microsoft products and those who cannot.
Numerous viruses on the Internet have also been spread through Microsoft software -- perhaps because its products are seriously flawed or because the number of Microsoft users is relatively large. Only when users are aware of the significance of open standards will we establish that the world would be safer with less Microsoft software. Such awareness will also force the company to modify its market strategy.
It is to be hoped that Microsoft's administrative settlement will serve the public interest. But price cuts should not be included in the negotiations. Hopefully, the media, the Legislative Yuan and consumers organizations will stop promoting such misguided approaches.
Joseph Chen is the executive editor of CNET Networks Taiwan.
TRANSLATED BY EDDY CHANG
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