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"But some big software companies, including Microsoft, expressed dismay at some of the proposals, saying they could themselves stifle innovation."

And what exactly has Microsoft been innovating lately?

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It's hard to say since they don't expose the internals of their OS or other products, but one must assume that something interesting happened below in the surface in Windows 8 and in Windows Phone. They also manufacture the xbox360 and are probably working on a next-gen console in addition to that. They run a cloud platform (Azure) that again, probably has interesting things going on under the surface. Etc etc.

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