e.g. selling Word/Excel/PowerPoint together is hurting any start-up that might want to enter the document processing/spreadsheet/etc markets? Free browsers killed the entire market that was starting to appear in the 90s etc. etc.
Should office suites be banned? Should Adobe be only allowed to sell subscriptions/licenses for individual apps?
At the end of the day it should only matter if Microsoft's practices are hurting consumers rather than their competitors.
On the one hand that's a broadly reasonable goal, however the point of having laws preventing anti-competitive behaviour is founded in the logic that one company unfairly preventing there being competition from other companies is in itself a form of consumer harm due to the fact that it both prevents consumers from having choice, and also therefore in the longer term allows the monopolistic company to raise prices without consumers having any option other than to pay more or go without.
So in reality the harming or competitors can be considered the harming of consumers.
In the story above, a competitor to Teams couldn't "keep up". Is that really Microsoft's problem? Should Microsoft have made Teams more useless, more expensive, or less integrated so that competitors that couldn't make their own cheaper or better version had a chance to keep getting customers?
Well, they should at very least make Teams interoperable like every other goddamn service should be - or be forced to do so.
At some point, if people want an alternative to Github, perhaps it starts with people not using Github and switching to alternatives.
Honestly, it would seem people like market concentration. I don't think people like having to use multiple repository management websites. However, I do wish it was centralization in experience over a federated system, rather than what we have noe. e.g. a "source control browser" that normalizes github, bitbucket, sourceforce, sourcehut, etc. into a single seamless interface.
But even that doesn't seem to be high on anyone's list.
Voting with your wallet (or with your attention & time for free things) makes sense if there's an alternative you can choose that's as good as the one from the company you dislike, or if you consider the impact on you of any deficits in the alternative to be less important than sending a message by voting with your wallet/time.
But it's completely understandable, and very common, for people to be in a situation that while they want to boycott a company/product because of how they act in some way (from software UI decisions to using child labour in sweatshops to...) but are faced with the choice between using/buying one of their products or suffering from what they consider to be a significantly worse and/or more expensive product.
And if you wish that one or both of Microsoft selling / giving away Github, or MS changing how they run Github, would happen, then why not publicly express blame in the hope that enough similar complaints build pressure, regardless of whether you're avoiding it or feeling you need to use it?
(Personally I don't feel I use Github enough to be a useful voice on how MS have handled it since the acquisition, but I feel like many people have expressed being pleasantly surprised that they've broadly let Github be Github, at least compared to worst-case fears of how much they might try to make it more Microsofty.)
This is silly, they will just buy up all the competition, what choose will you have
Once customers bought Office+Teams the cost of using Teams is 0, because they paid for it. How can competitors make a cheaper product then? You can't get cheaper than that! Even if someone wanted to use your product they most likely would still have to pay for Teams by buying Office.
True, but that also applies to every other single app and service that they are bundling with the subscription. I only want Excel but I'm also forced to pay for PowerPoint. And how deep should we go? Should they be forced to turn Edge into a paid product you have to buy separately? They crippled if not outright killed the consumer anti-virus industry by starting to bundle Windows Defender/(whatever it's called)? That certainly wasn't fair to McAfee/Norton/Kaspersky/(any other shovel ware provider) but did it hurt consumers? One might argue this would also apply to [File] Explorer and every other basic app.
How is the situation with Teams at all different and where exactly do we draw the line?
I don't think you should have to turn Edge into a paid product similar to how I don't think grocery stores should be forced to charge you if you use a shopping cart. If Microsoft wants to include Windows Defender for free but if they're increasing the cost of a Windows License to accommodate that development effort then it's not ok.
Microsoft can offer you a volume discount for buying say Excel + Word + X but bundling is anti-competitve (see every complaint about TV bundles ever).
Like you pointed out with cable, if I want just Disney Kids on cable, I need to buy all of Disney's channels, including ABC, etc. This is because that's how the cable provider has to buy it from the networks.
Why aren't they being told they have to unbundled channels from each other? I can't pay per view sports games - they offer subscriptions that bundle the entire season. The NFL is the worst on this. Why can't I just pay a few bucks to watch one game?
It seems like if bundling Teams with Office is that big of a deal, then customers should stop using Office, and use a competitor, just like I avoid cable.
You could argue that preventing this is a positive bundling. e.g. the Cup final game doesn't exist without the first round games and quarter-finals, and the other league matches that you don't want to pay for. They need to be subsidised or the whole thing might not work or won't be as good.
But "you can't buy x without y" where x and y are in different markets is (ahem) a different ballgame.
You can't regulate every offender at the exact same time. Who you go after and when is always a political decision. This is basically the claim everybody was making when Android was in anti-trust trouble and everybody was like "How can you go after Android when Apple has a walled garden" and now Apple is in a hot seat.
Look how long it took for TicketMaster/LiveNation to get into the hot seat. Yes, it's not really fair that people get to cause problems for so long before being punished but that's life and it doesn't mean you should give people a free pass since you can't go after them all at once.
> Why aren't they being told they have to unbundled channels from each other? I can't pay per view sports games - they offer subscriptions that bundle the entire season. The NFL is the worst on this. Why can't I just pay a few bucks to watch one game?
I wouldn't argue that Panthers v Patriots is a different application than Broncos v Buccaneers.
Although I think I was fairly clear in my other post that I think the cable bundling is anti-competitive.
Hard to see how.
MS could devote resources to making MS Teams more useful, but they don't have to, so they don't.
It's not competing with Slack on features and usability or fun. It's competing with Slack on "you get a chat app and hey, it's free (with office)" and that makes the board happy.
If Microsoft start providing kickbacks and bribes to CTOs for choosing Microsoft, many competitors won’t be able to keep up. Is that Microsoft’s problem?
No, it’s our problem. We get to decide what they are allowed to do, whats fair and what isn’t.
Ideally you always want to see companies trying to run their competitors out of business by undercutting them and offering better products at lower prices. The issue when the playing field isn't level e.g. what MS is doing here is basically predatory pricing. But even then it's not exactly clear cut, e.g. did Uber running out many taxi companies out of business (or destroying their profit margins) was a net-negative or a net positive to consumers?
Compared to taxis? Well I guess it depends on where you live, but I wouldn't' generally agree.
It's also a highly commoditized market with little real barriers to entry (at least on the local level) and drivers/users can pretty much instantly switch to a different app so I think it will be reasonable hard for Uber/etc. to do that without someone undercutting them.
> due to lower competition
Still better than no competition and prices being set by a legal cartel (i.e. how taxis worked/work in many places)
Focusing on short term repercussions for consumers has significantly hurt long term consumer interests and there is evidence that it hurt the economy in general. In the decades preceding the 1980s it was generally understood that competition itself is a necessity for effective free markets and that extreme power concentration (as we e.g. see today in the IT sector) is hard to reconcile with efficient markets and political freedom.
See [1] for details, here is an excerpt:
> An emerging group of young scholars are inquiring whether we truly benefitted from competition with little antitrust enforcement. The mounting evidence suggests no. New business formation has steadily declined as a share of the economy since the late 1970s. “In 1982, young firms [those five-years old or younger] accounted for about half of all firms, and one-fifth of total employment,” observed Jason Furman, Chairman of the Council of Economic Advisers. But by 2013, these figures fell “to about one-third of firms and one-tenth of total employment.” Competition is decreasing in many significant markets, as they become concentrated. Greater profits are falling in the hands of fewer firms. “More than 75% of US industries have experienced an increase in concentration levels over the last two decades,” one recent study found. “Firms in industries with the largest increases in product market concentration have enjoyed higher profit margins, positive abnormal stock returns, and more profitable M&A deals, which suggests that market power is becoming an important source of value.” Since the late 1970s, wealth inequality has grown, and worker mobility has declined. Labor’s share of income in the nonfarm business sector was in the mid-60 percentage points for several decades after WWII, but that too has declined since 2000 to the mid-50s. Despite the higher returns to capital, businesses in markets with rising concentration and less competition are investing relatively less. This investment gap, one study found, is driven by industry leaders who have higher profit margins.
[1] https://archive.is/HEik3#selection-1737.0-1737.346 (original: https://hbr.org/2017/12/the-rise-fall-and-rebirth-of-the-u-s... )
Yet Bell wasn't broken up until 1982 so I'm not sure if it was a such a turning point. IMHO allowing AT&T's monopoly to exist for that long was much more detrimental to consumers than whatever MS, Apple and other tech companies are doing these days.
But yeah I certainly overall agree that competition has generally been the driving force behind most of human progress and economic growth at least over the last few hundred years. It's just not entirely clear what measures should governments use to maximize the competitiveness of markets without introducing inefficiencies and costs that slow down economic growth and technological progress (while not providing that many benefits to consumers either).
In the end we pay about as much as we ever have in aggregate - but at a loss of all of the benefits the AT&T monopoly - subsidized general science research from the labs, a plethora of union jobs, and an overall loss of US manufacturing capacity.
My belief having working in the sector, anything that looks like a utility is better off as a tightly regulated monopoly than being open to the winds of competition.
Interesting. Out of curiosity, may I ask how old you are?
Intra-LATA calling between neighboring towns got a bit more expensive for a while, yes, but long distance almost immediately became much cheaper. It was like the move from film photography to digital -- suddenly everybody was taking photos freely, because the marginal cost was almost gone.
Post-breakup long distance calling became something people weren't inherently reluctant to use, and that was a big deal. Especially with the concurrent rise of BBSes. There's no way I'd ever agree that we were better off with the status quo.
If governments were to parcel up markets and stop companies from crossing rather arbitrary dividing lines, it would effectively stop all investment in disruptive technologies because any real disruption most likely infringes on some of these laws.
If you stop large companies from expanding into neighbouring industries, e.g by bundling new stuff with their existing offering, you stop them from becoming bigger but at the same time you are reducing competition. The risk is that you might end up with smaller companies but even less competition.
I'm not ideologically opposed to government intervention. I just don't know how to do it. All discussions on how to break up some tech giant quickly reveal how devilishly complex the problem is. And it's different for each of them and for each industry.
What would be a general rule to prevent growing concentration without damaging innovation, ossifying existing market structures and make impossible demands on the political system in terms of keeping all those detailed rules up-to-date and fit for purpose?
There is absolutely no need to do this until you become Microsoft's size and no government has or likely ever will.
There was a lot more innovation enabled by the antitrust action against Microsoft in the early 2000s.
>There is absolutely no need to do this until you become Microsoft's size and no government has or will.
I'm not so sure. Debates about how to break up the tech giants often revolve around which particular activities shouldn't be under the same roof because there is an intrinsic conflict of interest.
For instance, some of the accusations against Amazon appear to be pointing to a potential solution where Amazon would no longer be allowed to compete with Amazon Marketplace traders or with publishers. Not sure if Lina Khan has anything like this in mind or not.
We also had many debates about whether media companies should be allowed to be internet access providers or operate internet backbones. Net neutrality is supposed to stop any misuse of power, but net neutrality itself is under constant fire from deregulators.
The thing is, it doesn't make much sense to break up a specific company because doing both A and B causes a conflict of interest but then let other companies do A and B. That's why in my view any such breakup implies a need for defining boundaries between markets that cannot be crossed.
This only applies to dominant companies/ monopolies.
But there is merit to the idea - like should investment banks be allowed to profit from taking a position against the position of their customer, even if that was done on their advise?
So basically entrenched companies in specific markets would be extremely hard to challenge unless you have very large amounts of capital just laying around doing nothing? Even start-ups would struggle a lot more to get funding because no established company outside of that specific market would be allowed to purchase them. I'm not sure overall that would benefit consumers that much (IMHO the complete opposite but it's debatable).
Of course it depends on how the boundaries are defined, but just in tech:
Apple (being a computer company) would have never been allowed to develop the iPod/Phone/Pad without spinning them off into independent companies?
Google (being an OS provider) wouldn't have been able to sell Pixel phones themselves, but that wouldn't be an issue since Android probably wouldn't have been a thing in the first place.
So we'd be permanently stuck with Symbian and Nokia/Sony Ericsson/Blackberry/etc.
Same applies to MS, which is a great counterexample, despite all their resources and power they completely failed to leverage that in the mobile market. Then you have Intel vs ARM, Google and social media, even Kodak to an extent.
Having a lot of money, resources and great engineering is not necessarily such a huge competitive advantage when trying to enter an adjacent market. You must also be capable of developing competitive/innovative products while not being afraid to cannibalize your current revenue streams. Especially if we're talking about major public companies. Pouring billions into some (potential) boondoggle without any immediate return is hard to pull off without generating a severe backlash from your investors.
Having a seemingly "perfectly" competitive market (i.e. margins are close to the "risk-free" rate of return) doesn't necessarily lead to a lot of innovation because companies in such markets can't afford to make risky investments and tend to just focus on maximizing efficiency of current technologies. e.g. yes Google being able to fund Waymo with their Search/Ad revenue/etc. is not exactly fair to their potential competitors but IMHO preventing that would have significantly slowed down any real progress in the field.
One alternative that could work is to mandate open APIs and a requirement for large platforms to carry all legal traffic and content. I know this is incredibly tricky as well. Who pays for the infrastructure? What about security and privacy issues? It raises many questions but it seems more promising as a direction of travel.
MSTeams hurts users 24/7 around the clock.
They use it because it's effectively free (1), and Slack is not.
It doesn't have to be good. And so it isn't.
1) Free with existing MS Office licences.
MS Teams had better integration with some other MS services such as OneDrive. That's obviously going to be so, that's what it's for.
The Slack-using employer also used Zoom. MS is the all-in-one in this regard too.
If I were Microsoft I'd reconsider bundling Loop, since it's going to disrupt tools like Notion. I mean, why would I bother using Notion, if I can just use Loop? : - )
I doubt the price covers the costs, especially after they added Teams.
Kill the competition, raise the price. G-MAFIA/FAANG playbook
Wouldn't this apply to any company that sells more than one product or service? Amazon uses Aws margins to subsidize a bunch, including r&d. A lot of biotech companies use profits from one drug to subsidize bad sales in another trying to break into the market.
> Kill the competition, raise the price. G-MAFIA/FAANG playbook
This is a solid business strategy, but it also falls prey to entrants back into the market when the large player raises its prices.
That’s absolutely the basic idea of antitrust.
Using dominance in Market A to get advantage in market B
Furthermore, I have always needed a Microsoft account to join a Teams meeting, as they want to make sure you get sucked into their ecosystem.
Aside from that, resource consumption on Chromium is totally crazy. Zoom or Hangouts are fine, but Teams makes my old NUC overheat during simple audiocalls.
https://support.microsoft.com/en-us/office/join-a-microsoft-...
So this means that I pull my customers into a competitor product, and they also get to hear me badmouth Teams if I find an opportunity to do so.
Teams doesn't have to be better, they're just bundled.
It's better than where we were (Cisco jabber) but also worse than what's out there.
Absolutely a monopoly maneuver.
and didn't really maintain for at least the last 2 years either
(it basically ran a often very outdated version of the web app + some AFIK unnecessary and buggy custom audio handling)
Do you maybe only do calls through Chrome? Or maybe you have a user agent spoofing extension (or similar) installed in Firefox?
"Supported."
Firefox doesn't seem to be intentionally blocked by Teams in my experience (or at least not anymore?), but maybe it should be.
I regularly use Meet, Zoom and Jitsi on Firefox and Meet has been the only one that always just worked for me and my guests.
Either way it doesn't matter much because:
- jitsi meet even when they still was a small startup managed to provide high quality video calling on all browsers/platforms
- MS Teams has more then enough resource to make things work, they just don't want to (same for properly maintaining their Linux app, which given that it can be a local deploy of the web-app a very little other code could be a 1.5 person job (the +.5 person in case the first is sick)) and have a good reason not to (they have been pushing edge hard, including using inappropriate means like deceiving windows users into using it when they clearly signaled they want to use another browser)
And the issue in Firefox across both those wildly different systems is present in Microsoft Teams, Google Meet and (I believe) Slack's Huddle.
Microsoft has the resources to make it work, sure, but I'm betting "making it work" here means fixing the issue in Firefox.
You can not convince me Microsoft isn't an evil company.
Unless his startup was VC funded and was already seriously penetrating enterprise and then couldn't get round C of financing because their 100+ person sales team couldn't make the high growth math make sense.
Otherwise usually your value prop can't be closely tied to *relatively* minor accounting decisions in the early days or you're already DOA when facing an entrenched opponent whose team can easily undercut you well beyond generic bundling deals (whether via strong existing relationships, making wider non-standard sweetheart deals that wouldn't be under regulatory scrutiny, and marketing budgets).
Don't get me wrong this can harm markets generally, and megacorps should be held to higher scrutiny, but usually it's not that simple.
My best guess is that the pandemic is what happened — if this story is true.
The bundling didn’t matter when no one needed a large amount of seats for an in-office workforce.
But during COVID and currently, there was no better pricing than what Microsoft is offering for all the things (ex. Azure + 0365 + GitHub).
The market shifted from Slack, Zoom and <insert anything else here> to Teams for large enterprises when they recognized that no one was coming back into the office.
Source: I bought enterprise software for a Fortune 20 during COVID until I launched my startup.
Whether a small European startup would have won out locally without Microsofts market position + price advantage idk. But without details I'm not sure the financial decision making of a Fortune 20 matters in this conversation which was part of my point.
Once your sales team is competing on price vs Microsoft it's basically over for young companies. Your value prop has to be much more than that until you're a mature business.
There's degrees to market manipulation and market position where this sort of explanation would hold water as being the root cause of death knell.
Since the OP refused to provide any further details or answer any questions people sent towards him, I tend to believe it's the latter.
Enshitification ramps up after the competition has been destroyed.
Plus, you use your market incumbency to stifle competition in other ways (e.g., putting advertisements for Apple Music in settings).
I think you meant to say not WORSE than Spotify.
The product has gone to hell, they need to fire all the product managers. I don't know how you fuck up a music UI this badly but...
You wrote:
> The product has gone to hell
Can you provide some specifics? To be clear, I am not defending Spotify. One big thing that is lacking: They need a plug-in system like modern web browsers. This will allow them to offload a lot of the UI innovation to tech savvy users. At the moment, only Spotify can make changes to the UI.Open a random play list, start playing a track.
Close the client, try to get back to the track you paying right now... Pick a big list will it get you back to the track. There used to be a few ways to do this, now there is one (and it's ugly).
Is there a rhyme or reason to show or not show the tracks of an artist that I have liked/followed? Is that display consistent?
Why are we mixing liked artists and liked playlists now. Why is "like" some global list. Albums, songs, Artists are not the same thing. Globing these preferences together is like telling the waiter you like ice cream when he asks for your drink order, at breakfast on a Tuesday.
Why do I have to click into an album to find the publish date of a track? They have this whole right panel now with half assed track info and nothing useful.
The UI needs burned to the ground and an adult, who likes music needs to tell them what they need to show...
edit: should be this one: https://github.com/tombonez/noTunes
What will it take to make these companies realise I'm perfectly happy with my current music streaming service and I don't want theirs regardless of the price it's offered at? I find it very disrespectful as a user when software can't take 'no' for an answer; my 'no' isn't 'maybe if you wear me down with enough nag screens' it means 'no I'm not interested please go away'.
Often times they won't stop even if you are a customer as in the case of Microsoft insisting that I backup all my files to their OneDrive that came bundled with Office. I get constant nag notifications to "finish setting up backup" even though I have alternative backup solutions and only want to use OneDrive as an offsite storage, not as a sync system.
I would love to tell the software to "never bug me again", but instead we only have options of "Yes!" and "Not now, please bother me again".
I don't think MS Windows ever shipped with these.
It's a bit like saying that that them bundling PowerPoint together with their other apps is unfair towards any startup potentially wanting to enter that market. Which very well might be true but what's so special about Teams? MS and other companies have been bundling apps together since forever...
That lower cost people pay upfront thanks to monopolies, is then drained back with interest, using higher prices, reduction in social mobility (of new founders/startups), reduction in innovation & increase in rent-seeking behaviour.
Breaking up monopolies has been long overdue, it’s a good thing its starting now.
government should help us coordinate to prevent this Nash equilibria
Yeah but nobody minded not having to pay for web browsers, file manager, antivirus software and bunch of other stuff.
Companies have been bundling their different software products together since almost forever and while there are some disadvantages arguable this has benefited consumers overall. At least I wouldn't be too glad about having to buy separate licenses (or pay separate subscriptions) for Excel, Word and PowerPoint (or any other product bundle like Jetbrains IDEs for every language etc. etc.).
Most people would also not rather get a non-functional barebones OS whenever they get a new PC and have to chose and install all the basic apps themselves.
I worked in a company that also sold a collab solution and we had technical champions all over the place that 1000% agreed that our product was better than Teams in every single metric, including performance, UX and productivity. Yet they couldn't secure a budget since the higher-ups knew they got Teams for free in their E5 license.
Not sure you realise but in the corporate world it's about politics and money. People (above entry-level staff) do things to look good to their boss. That's it! And saving money is a great way of getting promoted: "Look boss, I just saved us $500k a year in license fees!".
Saving $X per year using a "free" tool from Microsoft will always trump anything you pay for especially if you are all in on Azure, O365 already. It's a no-brainer.
Not only that, once the decision is made, it will likely never be changed until the higher-up that made the decision moves on, quits, or is fired, no matter how wrong or bad the decision was (well, within reason, of course!)
I'd love it to be as simple as making a good case for the competition, and I've had to make that case many times over the years, but the reality is that a bundled product from Microsoft will win in a place that uses other Microsoft stuff, vs a paid product thats 100x better, faster, stronger, whatever.
It's because it's being sold to managers and executives who don't actually end up using it, and never have to deal with the consequences of buying it.
individuals are not pricing that in. coordination is needed. that's why we regulate the market
The problem you have is that the people making the finance decisions are often far-removed from the ones making value-based decisions.
The ones making the decision from a finance-perspective look at the offering from Microsoft, realise that it does video and chat for free (well, they're paying for O365 anyway) and that's it.
They don't care (or know!) that it's a resource hog, buggy etc. The value from the OP's product would not even be a consideration even if it was 100x "better" (use your own definition of "better" here!)
So I think it's unfair to use that comparison in this case
"As a product manager myself, I believe that the use of an advantageous market position to strengthen vertical integration is a reasonable practice, so long as the bundle cost of the final product to the consumer remains the same."
The problem with this, and the reason we we anti monopoly laws in general, is that this practice can be self-reinforcing, and allows for the capture of an entire market, extinguishing all competition. This then allows pricing for the good on offer to be set at whatever arbitrary price the monopoly deems reasonable.
I'm not even talking about azure and the anti-competitive shit they do there. Teams is but a drop in the ocean.
If a single customer dropped you because he now has Teams for free your product was a failure for that customer anyway and he just suddenly realized you offered him no value.
Just look at https://taskulu.com/ and tell me how Teams even competes with you. Your real competition was Jira and customers dropped you because Jira was a superior product and integration with Teams gave them everything you offered and a chat application separate from project management is an all around better option as there is a single chat for all employees, regardless of them using the project management tools.
Failure to innovate kills those companies.
Just look at the latest "innovation" of the OP: a wrapper around SES (5x more expensive!), like thoudand others exist.
Not to say damage didn't occur or that MSFT has a good track record of adhering to rulings, but it's potentially not too late for those in the future who could benefit.
As long as the law already existed
Either a law is inherently useful, or it is not. No need to cry about abuses in the 1800 regarding laws being passed today. The proposal is to fix a situational problem, not a physical one.
You should be thankful at all this is happening. On the other side of the ocean bundling office and teams is still perfectly legal.
I wonder why nobody at the US antitrust office has said anything at all.
Gee, I wonder...
Like the other comment here, it's ironic that it is the EU pulling from the market/capitalism playbook now.
[1] https://www.wired.com/story/the-us-government-has-a-microsof...
So is bundling office and PowerPoint which killed a massive number of presentation apps before they were even born. How is this particularly different? Should bundling any apps/sofware/services together be illegal? Should that only apply to specific companies?
Yes, it's an abuse of dominant position in the market.
> Should that only apply to specific companies?
It should apply to any market segment where one vendor can abuse its position.
2 amazons, 2 Aws
Has that ever actually happened? Or do you have any reason to believe it might in the future?
Too big company must announce what it tries to do, then EU replies:
- You are too big, you glutton. We don't allow this. Slim yourself down, now gtfo.