Here is the prompt (albeit disappointing) response from the ACCC:

Dear Mr Buggenum,



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



The Australian Competition and Consumer Commission (ACCC) is an independent
statutory authority responsible for the administration of the *Trade
Practices Act 1974 *(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.



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.



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.



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.

* *

*Third line forcing*



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*®* 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 *ACCC v IMB Group Pty Ltd (in liq) [2002] FCA 402*;
(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.



Thank you for raising your concerns with the ACCC.



Yours sincerely,





Jaime

ACCC Infocentre

Ph: 1300 302 502
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