Microsoft Corp. 56%

http://microsoft.com

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Microsoft Corp. develops, licenses, and supports software products, services, and devices worldwide. The company offers a wide range of software and hardware for both consumer and business markets. Major offerings include Windows operating system, Microsoft Office, Windows Phone software and devices, Xbox video game system and related services, Surface devices and accessories, advertising services, server products, Skype, and Office 365 cloud services.

Company Statistics

IndustrySoftware

DomicileUnited States

Market CapUSD 379,984 million

Stock SymbolMSFT

Services evaluated:

  • Bing (search engine)
  • Outlook.com (email platform)
  • Skype (chat and Internet calling)

Analysis

OVERALL – 56%

Microsoft, a founding member of the Global Network Initiative, placed third in the overall Index as well as among Internet companies. While it performed strongly on the Commitment category, it scored under 50 percent of total possible points on the Freedom of Expression category, demonstrating room for improvement. On October 14, 2015 – two weeks after the final cutoff date for incorporating any new information into the Index – the company unveiled a new Transparency Hub that contained new disclosures, most notably some with strong relevance to the Freedom of Expression category. We look forward to including that information – or even newer disclosures – in future iterations of the Index.

COMMITMENT – 82%

Microsoft earned top marks in the Index overall on its disclosed commitments to users’ freedom of expression and privacy and accompanying measures to implement those commitments. It received full marks on four of the six indicators in this category, including indicator C2, which focused on governance and management oversight. Unlike Google and Yahoo, Microsoft discloses that its board of directors exercises oversight on human rights issues including freedom of expression and privacy. The company’s high score for human rights impact assessment (C4) was exceeded only by Yahoo.

Remedy: Within the Commitment category, Microsoft’s greatest area of improvement focuses on grievance and remedy mechanisms (C6). While the company offers support websites where users can ask questions and submit complaints, these websites do not explicitly mention that such channels are meant to handle human rights grievances in relation to freedom of expression and privacy. Moreover, the company does not clarify its process for responding to such complaints or report on how it has handled them historically. In addition, some dispute resolution mechanisms are only available to U.S. users.

FREEDOM OF EXPRESSION – 46%

Freedom of Expression was Microsoft’s weakest area, based on information collected through the end of September 2015. As noted above, the company’s new Transparency Hub, unveiled in mid-October, came too late for its disclosures to be incorporated into the Index dataset. The company placed fifth in this category behind Google, Kakao, Twitter, and Yahoo.

User notification about content restriction: On indicator F5, which examined companies’ commitments to notify users when content is restricted, Microsoft’s score was substantially lower than several peers including Twitter, Google, Kakao and Facebook. In communications with our research team about this indicator, a company representative emphasized the need for “balance” between freedom of speech and “safety of end users and lawful operations of our services.” Specifically, the company cited the need to consider user privacy, victim safety, and government gag orders when deciding whether to notify users about content or account restriction.

Enforcement of terms of service: Like other companies in the Index, Microsoft discloses no information about the volume and nature of content or accounts that it restricts in the course of enforcing its terms of service (F9). In feedback to our researchers, a company representative cited user privacy as one reason for not disclosing such information, along with the fact that the company has prioritized transparency about other types of data, such as government requests. However the representative indicated that the company is open to a discussion of “ways to include information about terms of service enforcement that respect customer privacy.”

PRIVACY – 53%

Microsoft came in second place on privacy-related disclosures, an area in which all companies have much room for improvement.

Handling of user information: The company’s disclosure about collection of user information (P3) was on par with many peers, though not the strongest of all companies evaluated. Disclosure about the sharing of user information (P4) outperformed Google but was surpassed by Kakao, Yahoo, Facebook and Tencent. However, even the highest-scoring companies still fell seriously short of what users have a right to know. Microsoft could do more to help users access the information about them the company holds (P6). It could also provide more information about retention of user information (P7) and collection of user information from third parties (P8). Like many companies in the Index, Microsoft does not respect the “Do Not Track” standard (P8) that allows users to opt-out of certain types of web tracking.

Transparency about requests for user data: Microsoft tied with Google for providing information about its process for responding to third-party requests for user data (P9). (See Section 4.3 as well as Section 1 for discussion of different types of third-party requests.) Microsoft was surpassed only by Yahoo in its commitment to notify users about third-party requests for user data (P10). The company’s “transparency reporting” about third-party requests for user data (P11) was strong, though less thorough than Twitter, Google and Yahoo.

Security: Microsoft disclosed substantially less information about security standards (P12) than several of its peers. User education about security threats (P14) was exemplary for Bing and Outlook but weaker for Skype. Microsoft does not presently offer ways for users to encrypt the content of their private communications or encourage the use of third-party encryption solutions. However in a statement to our research team, a company representative indicated that this might change, stating, “Microsoft appreciates the importance of this issue and is exploring ways to provide customers with the option to encrypt their content such as their emails in Outlook.com.”

Indicator Results