Criticism of Microsoft - Licensing Agreements

Licensing Agreements

A common complaint about Windows comes from those who want to purchase a computer without a copy of Windows pre-installed, because they already own another copy of Windows available to install (ex: pre-ordered an upcoming version of Windows) or intend to use another operating system instead (such as Linux, FreeBSD, OpenSolaris or any other libre-free open source OS). Since free operating systems provide strong competition to Windows, which is a non free OS, Microsoft tries to force users not to choose an operating system by creating a market where most computers shipped from OEMs come with Windows preinstalled, and by secretly agreeing with OEMs by means of rebates, to make it very hard to receive a Windows refund.

While many computer manufacturers have begun to offer specific product ranges with Linux pre-installed (these include HP, Lenovo, Dell, Acer, MSI, Intel, and others), finding such a computer from a major OEM may prove challenging. While vendors sell certain models bundled with Linux, these are often limited to high-end workstations and enterprise servers, or budget, domestic models. Dell, for example, sells Linux pre-installed on home systems, but it is only offered on a limited number of models and configurations and Dell also explicitly warns prospective buyers that "The main thing to note is that when you choose open source you don't get a Windows operating system."

So while in theory computers with free operating systems can be obtained, nonetheless, most large computer vendors continue to bundle Microsoft Windows with the majority of the personal computers in their ranges. The Findings of Fact in the United States Microsoft antitrust case established that "One of the ways Microsoft combats piracy is by advising OEMs that they will be charged a higher price for Windows unless they drastically limit the number of PCs that they sell without an operating system pre-installed. In 1998, all major OEMs agreed to this restriction." This has been called the "Windows tax" or "Microsoft tax".

Some smaller OEMs and larger retail chains have taken advantage of the paucity of non-Windows offerings by major suppliers by specializing in Linux-based systems. Some Linux distributors also run 'partnership' programs to endorse suppliers of machines with their system preinstalled. Sun Microsystems, which supports OpenSolaris distribution, runs a partnership program with Toshiba which provides Toshiba laptops with OpenSolaris preinstalled.

Windows tax can also be avoided by assembling a computer from separately purchased parts, thus not buying it from an OEM. This however requires extra effort and technical knowledge, and is even more difficult in case of a laptop. Another option is buying a preassembled white box machine.

An end user can return Windows for a refund by refusing to agree to the Microsoft End User License Agreement. The Microsoft EULA specifically mentions that if the user does not agree to the licence, the product can be returned for a full refund. Vendors may have a policy of charging for the provision of the refund such that the balance received by the customer is as low as $10, despite this being a violation of consumer protection law in many countries. A certain number of customers were refunded of their Windows licence, whether using the EULA or not, whether through an agreement or through court.