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With Windows 11, Microsoft touts a more open platform but relies on a familiar business model

  • Microsoft is billing Windows 11 as a more open platform for creators and businesses, but bundled software is reminiscent of an earlier era
  • The company is emphasising openness as Big Tech rivals Amazon, Apple, Google and Facebook remain the focus of increased antitrust scrutiny in Washington

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Windows 11 brings new style to Microsoft’s widely used operating system, but it also brings along old business practices. Photo: DPA
Microsoft Corp’s Windows 11, the latest iteration of its 35-year-old personal computer operating system, boasts loads of new of features meant to position the software giant as the polite child in a classroom full of big bad technology bullies. The update also has at least one change that hearkens back to the days of Microsoft’s own anticompetitive behaviour.
At the software’s Thursday debut, Microsoft touted developers’ choices to avoid app commissions, emphasised the ability to use outside app stores to download rival programs, and said it’s offering promotions and financial rewards to small and local news creators. All these points served to let Microsoft shine a light on how it’s different than some of its rivals – Apple Inc, Alphabet Inc’s Google and Facebook Inc.
iPhone maker Apple is fighting off a lawsuit over commissions charged in its App Store, with Microsoft backing plaintiff Epic Games Inc, and Google and Facebook have fought against Australian rules requiring them to compensate creators for news articles appearing on their ubiquitous search and social-media platforms. All three, along with Amazon.com Inc, are under intensifying scrutiny from global regulators over their gargantuan market power.

In criticising competitors in these cases, Microsoft has held up its own behaviour as a contrast – and the new Windows ups the ante. The company’s new Windows Store will let app developers use their own commerce platform, meaning they’ll pay Microsoft no fee, where Apple requires use of its tools and levies a 30 per cent commission on any app that made more than US$1 million in the past year. The new PC operating system also builds in graphical widgets that pull news from the web, with an initial focus on local news providers, and will give readers the option to tip the publication or author for their content.

“Windows isn’t just an operating system – it’s a platform for platform creators. It allows for the brightest of design spaces enabling people to build their own businesses and communities,” said Microsoft chief executive Officer Satya Nadella at the Windows virtual event. “Today the world needs a more open platform, one that allows apps to become platforms in their own right.” 

But one key addition to Windows 11 seems to undermine the company’s image of openness. Microsoft said it will bundle its Slack-killer, the Teams conferencing and communications software, directly into Windows, accessible with one button on the bottom of a user’s screen. Teams, introduced in 2017, started out years behind popular office-chat upstart Slack Technologies Inc, and has been catching up in recent years partly because the program is already included in Microsoft’s top-selling Office suite of productivity programs like Word and Excel. The move to integrate a burgeoning product into an established one looks like a throwback to the 1990s, when the software maker built its dominance – and hobbled rivals – by bundling other products into Windows, which came free and pre-installed on almost every PC shipped.
Microsoft has previously run into trouble by bundling software with its operating system, most notably with Internet Explorer, but web apps like Slack have changed the competitive landscape. Photo: Reuters
Microsoft has previously run into trouble by bundling software with its operating system, most notably with Internet Explorer, but web apps like Slack have changed the competitive landscape. Photo: Reuters

Even as they announced Teams would be built into the new Windows – creating a captive audience of millions of PC users that might otherwise have skipped the product – Microsoft executives on Thursday mentioned their desire to make Windows an open platform multiple times. The framing of Windows 11 is set against the backdrop of increased antitrust activity in the US, including a series of proposed bills introduced in Congress that aim to regulate Apple, Google, Facebook and Amazon – but are murky on whether Microsoft would be covered, too. In the current regulatory climate, the release of a product as significant as Windows, and with as much market share, has to be viewed through the lens of potential antitrust implications.

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