Hello world!

I have just sent this letter to Mike Kiley, Director, Enforcement and
Coordination Branch, ACCC. Now, where did I leave my velvet gloves?
}:-)

Kind regards,

Nicholas

--

As you may remember, I sent a complaint to the ACCC six months ago
concerning a software licensing contract between Microsoft Corporation
and Twinhead Corporation. That contract constrained Twinhead to
preloading Microsoft Windows XP on their "efio" branded laptops,
which, at that time, was their entire range of laptops.

Several months ago, after receiving your unsatisfactory response to my
complaint, I sent you a mathematical analysis that showed that the
existence of contract terms between Microsoft and manufacturers
restricting the supply of goods may be inferred from the present
market behaviour of manufacturers, and that this conclusion holds for
as long as manufacturers do not offer for sale laptops without
software at a reduction in price corresponding to the licensing cost
of the software. You have not yet responded to that analysis.

Recently Twinhead has been offering for sale "efio" branded laptops
with Linux preloaded instead of Microsoft Windows XP. For instance,
Twinhead advertises two laptops, the "efio 12KTL" [1] and the "efio
12KT" [2].

[1] http://www.twinhead.com.au/product_detail.asp?productid=153
[2] http://www.twinhead.com.au/product_detail.asp?productid=154

These laptops are identical except for the following differences:

efio 12KTL - $A1299
    256MB DDR RAM, 40GB HDD
    Internal DVD+CDRW Combo Drive
    Abec LINUX Suite inclusive of Open Office Suite:
    Spreadsheet, Word Processor, Presentation Programme

efio 12KT - $A1599
    512MB DDR RAM, 60GB HDD
    Internal DVDRW Dual Drive
    Microsoft(r) Windows(r) XP Home Edition

I contacted Twinhead for the upgrade prices for the "efio 12KTL":
    256MB DDR RAM --> 512MB DDR RAM: ~$A69
    40GB HDD --> 60GB HDD: $A99
    Internal DVD+CDRW Combo Drive --> Internal DVDRW Dual Drive: $A179

Thus the price of the "efio 12KTL" with these upgrades is ~$A1646
(i.e. ~$A47 more than the "efio 12KT"). Since these upgrades may be
effected at the time of assembly by substituting isomorphic components
appropriately, the difference in labour cost for Twinhead between the
"efio 12KTL" and the "efio 12KTL" with these upgrades is exactly zero.

Hence the conclusion of my previous analysis still holds, viz. that
this behaviour of Twinhead is not due to lawful economic
considerations, and, further, that consumers (and the ACCC) are being
led to believe that the price of the "efio 12KTL" does not include the
Microsoft Tax, when in fact it does.

If you are not prepared to answer my analyses then I would like you to
tell me the name of the minister responsible for the ACCC.

Please note that I shall post this correspondence online.

Thank you,

Nicholas
--
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