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Chronicles

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Microsoft to change Vista after Google complaint

Microsoft Corp. (MSFT.O: Quote, Profile, Research) has agreed to modify its Windows Vista operating system in response to a complaint that its computer search function put Google Inc. (GOOG.O: Quote, Profile, Research) …

Reuters Peter Kaplan

Context & Ripple Effects

Google's complaint landed not as a lawsuit but as a filing with the federal and state officials who monitor Microsoft's compliance with its five-year-old antitrust decree — and per the court filing, it worked: Microsoft agreed to revise how desktop search works in Vista. The pickup across the Wall Street Journal, Ars Technica, CNET and ZDNet on the same day signals how much weight the compliance channel now carries; Ars Technica ties the change specifically to Service Pack 1.

This is the second time Vista has been bent under external pressure: in October 2006 Microsoft accepted outside security software integration after similar objections, following an earlier dust-up when Google objected to defaults around IE 7 and search placement. The pattern per the corpus is consistent — where the 1990s fights were litigated, this one was settled inside the decree-monitoring process before Vista's changes even shipped.

First-order effects

  • Microsoft ships a modified Vista search experience in the decree-monitored revision rather than the design it had briefed reporters on, ceding ground to Google's complaint about disadvantaged third-party search.

Second-order effects

  • Rivals now have a template: file with the decree's compliance monitors instead of suing, turning the five-year-old settlement into a standing lever over Windows design decisions.

Third-order effects

  • The decree evolves from a backward-looking punishment into a forward-looking veto on OS features, which explains why Google has built a Washington lobbying operation explicitly modeled on avoiding what the corpus calls Microsoft's old neglect of the capital.

The trend: Operating-system design decisions are migrating from sole vendor discretion to regulator-supervised compromise, with aggrieved competitors routing disputes through antitrust compliance machinery rather than the market or the courts.