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WP7 Does Not Violate Cali Law

I have a feeling that this article from Seattle Weekly is going to get some traction so let’s just call it out now. The author states that WP7 ‘clearly’ violates California law and MS is going to be in hot water. Here’s their argument:

In their lengthy written decision, the appellate court judges make it clear that everything Microsoft is doing–investing in the creation of an improved product and selling it at less than its true cost, with the express intent of taking market share from a California competitor–is completely prohibited in the Golden State.

Under California code, it is against the law for a business there "to sell any article or product at less than the cost…or to give away any article or product, for the purpose of injuring competitors or destroying competition."

I’m not going to get legal on you- let’s just use logic. Google is giving away licenses of Android for free. So it’s clearly at a loss, yet we haven’t heard a peep out of anyone about it and we know Android is gaining traction. And what MS is doing isn’t to hurt competition – they are clearly a minority player in the market and are spending money to gain market share. My non-legal mind is telling me that the actions of Intel against AMD is more of what this law was aimed at. Intel, for years, sold chips at a loss to hurt AMD and force them out of a market that they dominated (and if I recall they paid federal fines for violating anti-competitive laws for their actions).

If you want to read the full Seattle Weekly article it’s here but I simply can’t imagine the premise is correct so I wouldn’t go around thinking that WP7 will not be sold in California because of this article that fails to follow logic.