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Could Microsoft kill the antivirus industry?

By Stuart Turton

Posted on 7 Jan 2010 at 11:36

Rivals such as Symantec dismissed Microsoft’s free antivirus software as offering “a false sense of security”, but the numbers speak for themselves.

In its first week of release, Microsoft Security Essentials registered 1.5 million downloads – with Windows 7 testers accounting for the lion’s share, suggesting those without current security software are more than willing to give it a go.

There’s little doubt the package has Microsoft’s rivals rattled, but could Security Essentials one day pose a threat to the security industry? As a standalone product it’s certainly competitive, with our own review summing it up as “free, simple, light and impressively effective”, but what would happen if Microsoft began bundling it with Windows?

Windows 7 already includes a firewall and antispyware software – throw in a decent antivirus package and it’s harder for people to justify paying £40 or more for a full security suite.

“If Microsoft automatically included an antivirus package within the OS, then there’s no need for the customer to go and buy a rival package, so it would definitely be a problem

It’s such dilemmas that normally attract the attention of regulators, especially when Microsoft’s involved. The European Commission has already tapped the software giant for a combined 1.35 billion euros in fines for anticompetitive behaviour and failing to comply with its rulings.

The European Commission refused to comment on what would happen if Microsoft bundled Security Essentials with Windows, but Alan Davis, a competition partner with the law firm Pinsent Masons was less reticent.

“The EC steps in when a product removes the incentive for a customer to go elsewhere and get a competing product,” he said. “If Microsoft automatically included an antivirus package within the OS, then there’s no need for the customer to go and buy a rival package, so it would definitely be a problem.”

But while Davis believes the EC would get involved, he isn’t convinced it would be an open and shut case. “In the current climate, Microsoft could claim that it’s important customers have a basic level of protection and that’s all it’s offering. That could be a solid defence: it’s now become almost necessary, like a medical vaccination.”

It’s an argument that analyst Rob Enderle believes could buy Microsoft support from governments, which are becoming increasingly twitchy about the impact of cybercrimes on the economy. “Better security has been the top request for years from Microsoft customers and it would go a long way towards the elimination of botnets and reducing the potential for a nationwide attack on government systems. You could see homeland security agencies actually promoting this approach,” said Enderle.

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User comments

By Josefov on 7 Jan 2010

It may damage the home market slightly. Given that a lot of home PCs come with trial AV which you have to subscribe to. It won't affect businesses as they require centralised management and reporting

By james016 on 7 Jan 2010

Who is responsible for the Virus problem, then?

You could argue that with the insecurity inherent in Windows, Microsoft have a 'duty of care' to fix the problem...

By JohnGray7581 on 7 Jan 2010

McAfees and Nortons deserve nothing

There are already excellent free AV products on the market (AVG and Avira) which are the only way to convince customers to buy AV product.
McAfee and Norton survive only because of enterprise legacy and some jurnalists.
The outcome: I see no reason whatsoever to switch from Avira.

By dusanjovanovic on 7 Jan 2010

Not again

It would be nice if the general public could actually see both sides of this problem. I for one like the idea of everyone having at least some form of virus protection. But at the same time the thought that Microsoft could become the only significant producer of anti-virus software scares me, and I do not believe at all such a situation would increase the overall security of computers in the world.

Furthermore people like Josefov would do well to recognize the difference between hurting a non-exisiting plastic fork industry and putting the entire anti-virus industry out of business. There is very clear examples in the past and present of bundling practices doing enormous damage to consumers, it would be ignorant to deny this.

I don't know a solution here that is both fair to companies and consumers, but it would make me feel a whole lot better if people would recognize we have a problem here.

By Woudenberg on 7 Jan 2010

__________

"and it’s harder for people to justify paying £40 or more for a full security suite"

Suites like Kaspersky are often on sale for less than £20 for a free license.

And as for "insecurity inherent in Windows", I thought the idea that other OS'es were somehow paragons of security had been well and truly popped of late. Seems that some people don't keep up with the news much.

By Lacrobat on 7 Jan 2010

Isn't competitition supposed to be good?

I like the idea of several vendors competing to sell me computer protection. I like the idea that their edge is how well they deal with new threats and 3 PCs for £20 a year seems excellent value for some peace of mind.

By milliganp on 7 Jan 2010

Why does Microsoft have to be the one to produce another AV product, that it is not even making a profit on? If they are so worried about security, and if they cannot make the basic OS safe, then they could just instal nag screens telling you to go to get someone else's AV. Are they making so much profit that they can indulge in unnecessary side projects. At best its gaining market share for the sake of it. At worst they want to kill off competition, esp if its free or god-forbid open-source.

By davidsoap on 8 Jan 2010

Microsoft Freebies

Microsoft's policy on freebies seems to be 'just enough so you know whether it works for you, then you need to go out and buy'.
Some examples which i've used, which prompted me to buy the full product:
MS Write - MS Word
MS Paint - Adobe Photoshop Elements
MS Speech Recognition - Nuance Naturally Speaking
MS AV - Avira Security Suite
MS Excel - Minitab's Minitab
Draw in MS Word - MS Visio
free games - bought games

Some people get by on the free stuff - good luck to them. They weren't going to spend money anyway. Bundling free stuff lets you know what the computer CAN do

By hminney on 8 Jan 2010

Competition?

'“The EC steps in when a product removes the incentive for a customer to go elsewhere and get a competing product,” he said. “If Microsoft automatically included an antivirus package within the OS, then there’s no need for the customer to go and buy a rival package, so it would definitely be a problem.”'

I just bought a new Ford Focus and it came fitted with a Ford engine. Simply unacceptable, I should be given a list of engines from Ford and competitors (and they should be in a random order).

What utter rubbish. So they bundle antivirus with Windows - it saves money and if you prefer something else you download it or buy it. What's wrong there? Tne EU should concentrate on other areas of 'Competition' such as Intel's bullyboy tactics or prehaps Apple tying the iPod/iPhone to iTunes/Appstore or even Google cornering the market with linkups to Firefox etc.

By everton2004 on 8 Jan 2010

Microsoft Freebies

By hminney on 8 Jan 2010

"I don't know a solution here that is both fair to companies and consumers, but it would make me feel a whole lot better if people would recognize we have a problem here.By Woudenberg"

A good solution would be for Security software houses to keep the price of their anti-virus products low enough for everyone to consider buying one much like some of the free anti-virus packages which are free and then you pay a small, reasonable amount for a more comprehensive package if that's what you want.

By flopsium on 8 Jan 2010

Antivirus

I doubt that anyone could even come close to ending the virus age, there will always be a new young mind creating a new type of code..lets hope that the antivirus plus software on the market will keep up.

By doctore on 16 Aug 2010

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