Legal Question in Technology Law in Louisiana

Legality of Gateway selling Microsoft's Products, but restricting use

Gateway, and many other major computer producers, sell all of their computers with Windows XP. However, they have recently added on an EULA that requires the user to use that Software only with Gateway's hardware. Does this violate the Sherman Anti-Trust Laws or anything similar? Also, if they changed their EULA after i bought their product and they didn't notify me of the change, am I still bound by the new EULA?


Asked on 12/29/05, 11:37 pm

1 Answer from Attorneys

Perry Staub Taggart Morton

Re: Legality of Gateway selling Microsoft's Products, but restricting use

Without going into a great deal of legalese, antitrust laws are concerned primarily with conspiratorial conduct that impacts competition. Microsoft's setting of the terms of its EULA can be defended as unilateral, not conspiratorial conduct. Microsoft is free to set the prices and terms under which it agrees to do business without running afoul of the antitrust laws. Even if MS and GW got together in a back room and decided that each would benefit from the lower pricing that a restrictive EULA might bring, this conduct would most likely be judged pro-competitive, rather than anticompetitive.

As far as your purchase is concerned, you should be bound by the EULA to which you agreed when purchasing the software/hardware. If that license was of limited duration, the issued of the license would be free to change the terms prior to your renewal.

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Answered on 12/30/05, 12:23 am


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