Conference 7.286::digital

    The Wall Street Journalarticle  headline this am was similar:
    "Digital Equipment Offices in Europe Are Raided Amid Probe of
    Practices"
    
    mentions European companies complained that Digital is tying hardware
    and sw mainteence contracts together, dicriminatory discounting, etc.
    
    Mark
    

So what's the complaint about VMS?

Only runs on our platforms, maybe?

Can we get a Euro gummint subsidy to port it to 486?  :-/

/john

    re .3:
    
    �Can we get a Euro gummint subsidy to port it to 486?  :-/
    
    Don't say it loud.. I'm paying enough taxes as is...   ;-)
    
    As far as I know, it's a question of illegal bundling of services
    (something like not willing to sell SW support, if the customer wants
    top buy his HW support elsewhere).

    I think it is safe to say that MCS has been working very hard these
    last years to ready a service portfolio that would address this
    problem. It turns out that one of the problems is simply quoting
    our existing Customers: We could tie up all our quoting capability
    for many years, not generating a single dollar worth of new business.
    
    People may have gotten a bit impatient trying to take business away
    from Digital. 
    
    Al
    

Are you really saying that it's illegal to have the following pricing scheme:

	Hardware maintenance $100
	Software maintenance $100

	Combined package     $175

???/john

    
    .6
    
    would this be in the arena of, let's say HSC's and Printserver's
    perhaps??
    
    Mark

      re: .7  - Yes, that's exactly what he is saying.  
        
        We tried to pursue a position that stated that providing service
    	was indeed less expensive for a vendor who had both the hardware 
    	and software maintenance contracts (therefore less expensive to 
    	the customer), but the Canadian gummnt says this is 
    	"anti-competitive".
        
     End of note 
    

    
    So I guess they are going after McDonalds for offering to sell me a Big
    Mac with fries and a drink for less than the seperate purchase price?
    
    Rob Wall
    

    
    	Just another concrete example of government meddling gone to far
    without common sense, reasonableness, etc.
    
    	Now we are the Hooters of European computing :-)
    
    		the Greyhawk

    I don't know the Digital MCS business details in this case but it is 
    true that the treaty of Rome (foundation of EU commercial law) prohibits
    "non-competitive bundling" pratices.
    
    There is more to it than straight pricing.  It relates to having a
    recognised market dominance.  For example a pencil manufacturer cannot
    abuse his dominant position versus eraser manufacturers by bundling in
    the eraser on the end of the pencil and then pricing the "bundle" at
    such attractive terms so as to drive established eraser manufacturers 
    out of business.  The point being that the eraser manufacturers are
    downstream (in the commercial sense) of the pencil manufacturer.
    
    At least that's how European lawyers explained it to me....
    
    /Chris.

    RE .13
    
    IMO, there shouldn't be a problem with this string.  Only thing
    presented, thus far, discusses the original article, opinions, and
    interpretations.  Nothing in here establishing corporate policy.
    
    Not that it's funny or pleasant to have legal/gov't entanglements, but 
    it's certainly "different" for us being alleged as TOO aggressive.

    I have write-locked this topic at the request of Cary Armistead of the
    corporate law department.  Since this is an active legal action against
    the company, it is inappropriate to discuss it here, since there is the
    possibility of increased legal risk to Digital.
    
    					Steve