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22Apr/110

Pre-installed Windows and competition in the European Union

Did you manage to buy a new computer (desktop or most commonly a laptop) and avoid paying for the pre-installed Windows, even if you do not intend to use it? Even if you already have a license (such as with those MS Academic licenses from your school)?

Let's dig some numbers for Europe.

StatCounter statistics for the use of Linux in Europe

StatCounter statistics for the use of Linux in Europe

According to StatCounter, in Europe about 1.15% of the Internet users use GNU/Linux.

According to the Internet World Stats, in 2010 there are about 475 million Internet users in Europe.

Therefore, the Linux users in Europe (EU) amount to 1.15% of 475 million = about 5.2 million Linux users.

Let's assume that 5 million of these Linux users in the EU ended-up buying a computer pre-installed with unneeded Windows software (Windows XP, Vista or 7, and maybe Microsoft Works). In addition, let's assume that the cost of the unneeded software is €50, which is a heavily conservative value since the unsubsidized price for Windows Home Premium 7 is about €70 (ex. tax). These figures bring the minimum cost that the 1.15% of EU consumers probably paid without any need to 5 million users * €50 / user = €250 million and most probably much higher.

What can we do about this?

The Foundation for a Free Information Infrastructure and the French speaking Libre Software Users' Association started an initiative, “Share your operating system bundling tales with the EU”, where consumers can report competition problems that affect them.

Here is the press release,

Berlin, Paris Apr 14th 2011 -- The FFII and AFUL ask consumers affected by operating system bundling or businesses involved in bundling to provide their evidence to the European Competition authority.

My choice is Debian GNU/Linux, explains FFII Vice president René Mages. Why have I been compelled to pay and erase Windows 7 at purchase time?

The European Commission admits it was aware of the difficulties encountered by consumers who want to purchase a PC with a non-Microsoft operating system or without any operating system at all. But they also say they lack evidence suggesting that this is the result of practices in violation of EU competition rules.

We want to crowd source the collection of evidence, says AFUL's President Laurent Séguin. If the EU finds anticompetitive agreements that foreclose competition or abuse a dominant position on the relevant market, that would be a magic bullet.

So, what we can do is visit the European Commission Competition website and report our experiences in buying computers while being forced to get pre-installed Windows although we do not need it.

Let's look at the form,    DISCLAIMER: These are my personal views on how the form could be filled in. If there is a mistake/ommission, please write in the comments and I'll correct.

Fill in your details

Fill in your details

Here just fill in your details. You can also select the appropriate language at the top-right drop-down menu.

About which undertaking or group do you wish to inform?

About which undertaking or group do you wish to inform?

Here you mention that you want to talk about Microsoft, and about one or more computer manufacturers that you where unable to get a computer without pre-installed Windows. It is the lack of choice when buying a new computer. We need choice for the operating system of the computer we plan to buy. For computers, the need of choice for the operating system is critical, as there are viable alternatives such as Linux, which about 5 millions EU citizens already use.

2. To what economic sector is your information related?

2. To what economic sector is your information related?

This is an easy one, select Information technology (computers, softwares).

What is the matter about which you inform? When did it come to your attention?

What is the matter about which you inform? When did it come to your attention?

  1. You can talk about the inability to find a suitable computer for your needs that does not come with pre-installed Windows.You might use another operating system such as GNU Linux or you might already have a Windows license (due to an academic program from your school).
  2. If you have a personal experience to share regarding a computer manufacturer and Microsoft software, you can add it here. If you tried to buy a computer without Windows and you had to pay more, or go into great inconvenience, add it here.
  3. Add examples that show since when you have been faced with this issue.
4. What result do you hope to achieve?

4. What result do you hope to achieve?

Here you can say that you want to be able to buy a computer with a choice for the operating system. There are options for alternative operating systems, such as GNU/Linux or even FreeDOS (sort of a token operating system useful if you already have a Windows license).

You can also add that you would like transparency in the agreements between Microsoft and the manufacturers so that when you “build” your desired computer, you can change the operating system as you can change the type of CPU, RAM, or whether you want Bluetooth, 3G and a webcam.

Moreover, you can stress that you want to de-bundle Windows from the computer. You want transparency for the price of the operating system and ability to switch, as you can switch between service providers.

Finally, there is a special relationship between Microsoft and computer manufacturers, where the manufacturers end up promoting Windows software from their websites and advertising material, in order to receive discounts from Microsoft. This special relationship between Microsoft and the manufacturers is unfair, limits choice and hurts competition. It does not provide a level playing field to other operating systems, and the EU consumer is the victim. You would like the European Commision to investigate these agreements between Microsoft and the computer manufacturers.

Have you already contacted the Directorate-General for Competition or other national competition authorities or national regulators in order to obtain assistance?

Have you already contacted the Directorate-General for Competition or other national competition authorities or national regulators in order to obtain assistance?

Here specify whether you already contacted the EU or national bodies for this competition issue.

Supporting documents

Supporting documents

You can select whether you want the information that you provide to pass to another competition authority if this one is not entitled to deal with it. Apparently this is the competition authority for the bundling problem of Windows, therefore it is up to your discretion if you feel to say no.

If you have supporting documents, such as emails or letters that show the efforts you went through to find a computer without pre-installed Windows, you can add them here. If there are several documents, you can simply ZIP them into one.

9Aug/0924

Laptop without Windows, an update for Dell, Asus, Acer, Compaq

It is very difficult to buy a computer without Windows (that is, to buy it with either Linux, FreeDOS or no OS) in the European market.

Why would you want to buy a laptop without pre-installed Windows?

  1. Because you are simply not going to use Windows (for example, you plan to use a Linux distribution)
  2. Because your school has an Developer Academic Alliance (formerly MSDN AA) with Microsoft and they provide the Windows software for you
  3. Because your organisation has a company-wide agreement for Microsoft software, and you do not wish to pay twice for Windows.
  4. Because you somehow have a Windows license or Windows package installation box already.

Sadly, when talking to the sales personnel of a manufacturer, it might look an easier strategy to just mention points 2 or 3. There is already some prior knowledge with the sales personnel that large organisations do not need the pre-installed Windows software.

Dell used to sell the N Series laptops with Ubuntu Linux, however they do not sell them anymore, at least in Europe. I contacted a Dell customer care manager on this issue and I was told that N Series laptops are available when you call Dell Sales by phone. I did just that, however the telephone salesperson explained that they do not have N Series laptops anymore. He verified with his own manager.

Dell does sell netbooks with Ubuntu Linux in Europe. For example, the Dell Mini or the Dell Latitude 2100. The situation with the netbooks is almost perfect, but...

Dell UK Latitude 2100, Choose early between XP or Ubuntu

What would be desirable is to provide the option, when you customize the Latitude 2100, to be able to select the operating system under the Operating System options. In this way, the customer is in a position to make a better decision between the differences of the two options.

Dell Greece, select the operating system while customizing the computer

In a regional Dell website, it is possible to select the operating system while you are customizing the computer. In this case, when you select Ubuntu Linux, you can easily see that you are saving €30 compared to the initial price.

It is not clear why Dell UK and Dell Germany do not provide the facility that we see with Dell Greece. Normally the localised editions of a website take any changes later than the main languages (English, German).

Updated (soon after posted): It is possible to get the Dell UK page for the Latitude 2100 so that both pre-installed Windows and Ubuntu appear in the same section. It might be an update that has been rolled out just recently. When you visit the Customise page,  you can now see that by selecting pre-installed Ubuntu Linux, you save £24 compared to pre-installed XP.

What would be ideal is for the consumer to have the option to avoid the pre-installed Windows, in a way shown above at the Dell Greece website for the Latitude 2100. Having options for Ubuntu Linux or FreeDOS (for those who already have a Windows license) would be the best value for the customers. This would make Dell the best company around.

So, what's going on with the other laptop manufacturers?

Acer, Asus, Compaq and HP do not appear to sell computers without pre-installed Windows to the European market. I have not been able to locate retailers that would sell a laptop with FreeDOS, let alone a Linux distribution.

Is this the case with Acer, Asus, Compaq and HP in other markets?

Acer Laptop with FreeDOS (SE Asian market) Asus Laptop with FreeDOS (SE Asian market) Compaq Laptop with FreeDOS (SE Asian market)

This is an example of laptop models from the SE Asian market. The laptops come with FreeDOS and if you want pre-installed Windows, you pay extra (€53 or $74). The quoted price for the laptop is not subjected to local tax for the specific SE Asian country. Here is the price equivalent for each laptop,

Acer: €325 or $460

Asus: €525 or $745

Compaq: €365 or $515

Manufacturers such as Lenovo and Toshiba appear as black sheep to me, regarding the European market. Lenovo is supposed to sell laptops with SuSE Linux, however I could not find an example. Toshiba is completely out of the radar. They might not be a big laptop manufacturer.

What would be great for the European customer is to have the option to buy a product without pre-installed Windows. And this option of buying a computer without pre-installed Windows should be a visible and accessible option.

   

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