Here is the prompt (albeit disappointing) response from the ACCC:<br><br><div dir="ltr" align="left" lang="en-us"><font face="Times New Roman" size="3"><span style="font-size: 12pt;">Dear Mr
Buggenum,</span></font></div>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;"> </span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;">Thank you for your email of 19 May 2009 to the
Australian Competition and Consumer Commission (ACCC) regarding Lenovo
Computers. I note that you are concerned that Microsoft®s Windows is
pre-installed on Lenovo computers</span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;"> <font color="blue"><span style="color: blue;"></span></font></span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;">The Australian Competition and Consumer Commission
(ACCC) is an independent statutory authority responsible for the administration
of the <i><span style="font-style: italic;">Trade Practices Act 1974
</span></i>(the Act) and the Competition Codes of the States and Territories.
The Act prohibits certain anti-competitive conduct and unconscionable, false,
misleading or deceptive practices.</span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;"> </span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;">While the policy of computer manufacturers to supply
computers with Microsoft Windows® pre-installed may cause inconvenience to some
consumers, the Act generally does not authorise the ACCC to determine the terms
and conditions upon which businesses may supply their goods. The ACCC cannot,
for example, compel computer manufacturers to sell computers with alternative
operating systems (e.g. Linux) installed, or to sell computers without any
operating system software installed.</span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;"> </span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;">As you may be aware, Microsoft recently reached a
settlement with the United States Department of Justice. Amongst other things,
the general provisions of the settlement prevent Microsoft from using its market
power to force original equipment manufacturers (“OEM’s”) to install only
Microsoft software on their products. The settlement therefore allows for OEM’s
to begin pre-installing competing software on computer systems. It is possible
that due to the volume of discounting offered by Microsoft, OEM’s do not have
substantial incentive to install non-Windows operating systems. Based on the
information available to the ACCC, it is unclear whether the choice to sell
computers with Microsoft® Windows pre-installed is a commercial decision made by
OEM’s themselves, as opposed to being attributable to attempts by Microsoft to
force OEM’s to sell products with Microsoft Windows®
pre-installed.</span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;"> </span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;">I have noted from the information provided that all
Lenovo computers must be sold with Microsoft® Vista pre-installed and that consumers must pay for this
product if they wish to purchase the computer. Based on the information you have
provided I do not consider that there is likely to be a breach of the TPA.
</span></font></p>
<p><i><font face="Times New Roman" size="3"><span style="font-size: 12pt; font-style: italic;"> </span></font></i></p>
<p><i><font face="Times New Roman" size="3"><span style="font-size: 12pt; font-style: italic;">Third line
forcing</span></font></i></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;"> </span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;">In this instance, the conduct complained of appears
unlikely to constitute third line forcing in breach of section 47(6) of the Act.
This is because the pre-installed version of Microsoft<i><span style="font-style: italic;">®</span></i> Windows Vista is supplied by the same
company that supplies the the computers. It is not a condition of sale for the
computer that the customer purchases Windows Vista from another person or
company. In <i><span style="font-style: italic;">ACCC v IMB Group Pty Ltd (in
liq) [2002] FCA 402</span></i>; (2002), the Federal Court of Australia held that
where a single package of products or services is supplied there will be no
third line forcing, even though different, unrelated organisations produce the
various goods and services making up the package. </span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;"> </span></font></p>
<p style="text-align: justify;"><font face="Times New Roman" size="3"><span style="font-size: 12pt; font-family: 'Times New Roman';" lang="EN-GB">Thank you for raising
your concerns with the ACCC.</span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;"> </span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;">Yours sincerely,</span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;"> </span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;"> </span></font></p>
<p><a name="1215cccb9ce467c8_Signature"></a><font face="Times New Roman" size="3"><span style="font-size: 12pt;">Jaime</span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;">ACCC Infocentre</span></font></p>
<p><font face="Times New Roman" size="3"><span style="font-size: 12pt;">Ph: 1300 302 502</span></font></p><p><font face="Times New Roman" size="3"><span style="font-size: 12pt;"><br></span></font></p><br>