Fresh on the heels of the entire Munich and Linux debacle, another story involving Microsoft and free software has popped up across the world, in Chile. A prolific magazine from the South American country says that the powerful Microsoft lobby managed to turn around a law that would allow the authorities to use free software.

The story broke out from a magazine called El Sábado de El Mercurio, which explains in great detail how the Microsoft lobby works and how it can overturn a law that may harm its financial interests.

An independent member of the Chilean Parliament, Vlado Mirosevic, pushed a bill that would allow the state to consider free software when the authorities needed to purchase or renew licenses. The state of Chile pays $2.7 billion (€2 billion) on licenses from various companies, including Microsoft.

According to ubuntizando.com, Microsoft representatives met with Vlado Mirosevic shortly after he announced his intentions, but the bill passed the vote, with 64 votes in favor, 12 abstentions, and one vote against it. That one vote was cast by Daniel Farcas, a member of a Chilean party.

A while later, the same member of the Parliament, Daniel Farcas, proposed another bill that actually nullified the effects of the previous one that had just been adopted. To make things even more interesting, some of the people who voted in favor of the first law also voted in favor of the second one.

The new bill is even more egregious, because it aggressively pushes for the adoption of proprietary software. Companies that choose to use proprietary software will receive certain tax breaks, which makes it very hard for free software to get adopted.

Microsoft has been in the news in the last few days because the German city of Munich that adopted Linux and dropped Windows system from its administration was considering, supposedly, returning to proprietary software.

This new situation in Chile give us a sample of the kind of pull a company like Microsoft has and it shows us just how fragile laws really are. This is not the first time a company tries to bend the laws in a country to maximize the profits, but the advent of free software and the clear financial advantages that it offers are really making a dent.

Five years ago, few people or governments would have considered adopting free software, but the quality of that software has risen dramatically and it has become a real competition for the likes of Microsoft.