Bonum Certa Men Certa

Microsoft Finds Out That Bribing Doesn't Work in the Long Term, Neither Against Google Nor GNU/Linux

Prisoner population rate - 2007-2008



Summary: By bribing people to use its services and to use Windows, Microsoft only empties its coffers and devalues Windows

ON several occasions last year we wrote about what the mainstream press called "bribery" [1, 2, 3]. It was talking about Microsoft's idea of paying Google customers to defect -- an anti-competitive idea which turns out to have roots in the ever-so-predatory Bill Gates (who knows that in the United States prisons are built for impoverished hungry shoplifters, not crooked megalomaniacs).



TechDirt calls it bribery and offers some background information:

Microsoft Discovers That Bribing People To Use Its Search Engine Didn't Work



We recently had a discussion about the role of money as an incentive and how it often doesn't work the way people think it should (i.e., money often provides negative incentive -- the opposite of what you would think). I'm actually working on another post about that topic that I'll hopefully finish later today, but here's a quick one demonstrating that point in action.

Way back in 2005, Bill Gates suggested that in the end, Microsoft would be able to beat Google because it had a secret weapon: it could bribe users to use Microsoft instead of Google, by offering them a cut of the advertising revenue.


The Microsoft reporters/PR have spun it a little [1, 2, 3], but the obvious takeaway is that Microsoft failed badly. This is an implicit admission that Bong [sic] is a road to nowhere.

Our reader Oiaohm called it "Cost cutting" and this probably makes sense because Microsoft has been suffering a loss of almost $3 billion per year in this area of operations (assuming the current pace continues).

In conclusion, Microsoft attempted to merely buy some market share and it cost it dearly.

Pogson brings up the fact that Microsoft used similar tactics against GNU/Linux (it apparently also bribed OEMs but didn't call that a "bribe").

After years of scrutiny by anti-competition police, Ballmer still doesn’t get it:
“When Mossberg asked why Microsoft had drastically lowered its price of Windows XP in reaction to netbook vendors having initially shipped units with Linux, Ballmer retreated by asking, “Why should I give someone else an opportunity?”.”
It’s the law, Steve. Monopolies are required to give competitors opportunities.

This exchange also answers the question why GNU/Linux has not taken a larger share of the desktop OS market.


This significantly hurt Microsoft financially, but the outcome was negative for GNU/Linux in sub-notebooks, as we explained in:



Sadly for Microsoft, Linux is very dominant in tablets right now. A Microsoft ally as big as HP even dumped Vista 7, replacing it with Linux. So what did Microsoft really achieve there? It only led to the cost of Windows going down, which still affects its bottom line.

Recent Techrights' Posts

Using SLAPPs to Cover Up Sexual Abuse and Strangulation
The exact same legal team of the Serial Strangler from Microsoft and Garrett already has a history fighting against "metoo"
Adding the Voice of Writers to UK SLAPP Reform
The journey to repair antiquated (monarchy era) laws will likely be long
 
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, July 12, 2025
IRC logs for Saturday, July 12, 2025
Plunder at the Second-Largest Institution in Europe
cuts, neglect, health problems, even early deaths
Links 12/07/2025: Political Developments, Attack on Opposition, Climate Actions
Links for the day
Gemini Links 12/07/2025: Melodic Musings and Small Web July
Links for the day
Links 12/07/2025: Jail in China for Homoerotica, South Korea Discriminates Against Old Workers
Links for the day
If Only Everything Was Rewritten in Rust, We'd Have No More Security Issues?
Nope.
Links 12/07/2025: Birdwatching and Fake/Misleading Wall Street 'Valuation' Figures
Links for the day
Gemini Links 12/07/2025: How to Avoid Writing, Apps for Android
Links for the day
EPO Staff Committee on Harassment in the Workplace
slides
EPO Takes More Money From Staff for Speculation (Pensions), Actuarial Study Explains the Impact
"The key change in this year’s Actuarial Study, due to cascading the new “risk appetite” from the financial study, is a significant increase of the total pension contribution rate of 5.7 percentage points, up to a total of 37.8%. This is driven by an unprecedented decrease in the discount rate of 105 bps down to 2.2%."
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, July 11, 2025
IRC logs for Friday, July 11, 2025
Microsoft - Like IBM - Does the "Relocation" Tricks (Start Over Elsewhere, Then Get Sacked by Microsoft)
It is a "low blow" or a "dick move"
After the Free Software Foundation's Campaign to Raise Money Let's See Campaigns to Finish Off Microsoft (Vista 11, GitHub etc.)
Microsoft is in effect collapsing
Your Publications Have No Major Impact Unless or Until You "Get Some Heat"
we're on the right track
Slopwatch: A Cause for Hope, the Hype is Dying
For about a month we showed that becoming a slopfarm - for several weeks - resulted in utter failure and ruin for BetaNews
Links 11/07/2025: Censorship Worsening, 3D Printing Success Stories, UK and France Unite Around Nukes
Links for the day
Gemini Links 11/07/2025: Zorin OS and Scriptonite Updates
Links for the day
Links 11/07/2025: Hardware, Russia, and China
Links for the day
Links 11/07/2025: Intel Collapsing and Microsoft Resorts to Bribery to Push Slop Via Obligatory Education
Links for the day
The EFF Sided With the Team That Strangles Women and Tells Women to Kill Themselves
They say that apathy and inaction are a form of a "stance"
"Nat [Friedman] and [the Serial Strangler From Microsoft] Were Always Exceptionally Close," Says Former Housemate and Colleague
Now Alex (hiding behind another name when that suits him) not only attacks women but also people who merely report what he did to women
Exemplary List of Things That Are Not Artificial Intelligence or Even Intelligence
The "age of AI" or "era of AI" or "AI revolution" mostly boils down to rebranding, just like "the cloud"
New Letter From the European Patent Office Explains How the Office Plots to Grant Many Illegal Patents, a Self-Fulfilling Prophecy of 'Growth'
Open letter to Mr Rowan (VP1) and Mr Aledo Lopez (COO)
Abuse of Process
5RB is employing people who help violent men
What Microsoft's Nat Friedman and Microsoft Lunduke Have in Common
"Get in da car; No time to explain, loser"
Microsoft and IBM Don't Have Much of a Future (They Mostly Pretend at This Point)
IBM and Microsoft are in some ways alike but in many ways different
It's Not Just Twitter (or X.com) That's Dying, Microsoft's Equivalent is Dying Also
Unable to find a business model
GitHub Copilot Can Cause the Bankruptcy of GitHub to Come Sooner and GitHub to be Shut Down Just Like Skype
Some publicly available information suggests that even for each paid subscriber for plagiarism (LLM 'coding') GitHub Copilot still loses more money than it makes
Wayland is Bad for the Planet
If you use Wayland, it'll take you longer to accomplish tasks and you will consume more energy (or battery life)
Legitimising Those Who Sabotage You
Microsoft is a very malicious company
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, July 10, 2025
IRC logs for Thursday, July 10, 2025
On Microsoft Layoffs
we might be looking at about 60,000 Microsoft layoffs since 2023
EPO Management Already Breaks Its Own Promise (Lie) on "Bringing Teams Together"
This gut-punching move happened just 2 days ago
Gemini Links 11/07/2025: Occupation of 2025 and "Old Man Yells At Soundcloud"
Links for the day
Our Lawsuits Against the 'Cancel Mob' (Ringleaders) Helped Reduce Anti-Free Software Online Abuse
That's not to say that lawsuits are the best way to handle terrible people. But that can help.