diff --git a/src/vs/code/node/windowsFinder.ts b/src/vs/code/node/windowsFinder.ts
index 2579cc33ba3..61d9427fa69 100644
--- a/src/vs/code/node/windowsFinder.ts
+++ b/src/vs/code/node/windowsFinder.ts
@@ -5,8 +5,6 @@
 
 'use strict';
 
-import * as path from 'path';
-import * as fs from 'fs';
 import * as platform from 'vs/base/common/platform';
 import * as paths from 'vs/base/common/paths';
 import { OpenContext } from 'vs/platform/windows/common/windows';
@@ -35,22 +33,9 @@ export interface IBestWindowOrFolderOptions<W extends ISimpleWindow> {
 export function findBestWindowOrFolderForFile<W extends ISimpleWindow>({ windows, newWindow, reuseWindow, context, filePath, userHome, codeSettingsFolder, workspaceResolver }: IBestWindowOrFolderOptions<W>): W | string {
 	if (!newWindow && filePath && (context === OpenContext.DESKTOP || context === OpenContext.CLI || context === OpenContext.DOCK)) {
 		const windowOnFilePath = findWindowOnFilePath(windows, filePath, workspaceResolver);
-
-		// 1) window wins if it has a workspace opened
-		if (windowOnFilePath && !!windowOnFilePath.openedWorkspace) {
+		if (windowOnFilePath) {
 			return windowOnFilePath;
 		}
-
-		// 2) window wins if it has a folder opened that is more specific than settings folder
-		const folderWithCodeSettings = !reuseWindow && findFolderWithCodeSettings(filePath, userHome, codeSettingsFolder);
-		if (windowOnFilePath && !(folderWithCodeSettings && folderWithCodeSettings.length > windowOnFilePath.openedFolderPath.length)) {
-			return windowOnFilePath;
-		}
-
-		// 3) finally return path to folder with settings
-		if (folderWithCodeSettings) {
-			return folderWithCodeSettings;
-		}
 	}
 
 	return !newWindow ? getLastActiveWindow(windows) : null;
@@ -77,36 +62,6 @@ function findWindowOnFilePath<W extends ISimpleWindow>(windows: W[], filePath: s
 	return null;
 }
 
-function findFolderWithCodeSettings(filePath: string, userHome?: string, codeSettingsFolder?: string): string {
-	let folder = path.dirname(paths.normalize(filePath, true));
-	let homeFolder = userHome && paths.normalize(userHome, true);
-	if (!platform.isLinux) {
-		homeFolder = homeFolder && homeFolder.toLowerCase();
-	}
-
-	let previous = null;
-	while (folder !== previous) {
-		if (hasCodeSettings(folder, homeFolder, codeSettingsFolder)) {
-			return folder;
-		}
-
-		previous = folder;
-		folder = path.dirname(folder);
-	}
-
-	return null;
-}
-
-function hasCodeSettings(folder: string, normalizedUserHome?: string, codeSettingsFolder = '.vscode') {
-	try {
-		return fs.statSync(path.join(folder, codeSettingsFolder, 'settings.json')).isFile();
-	} catch (err) {
-		// assume impossible to access
-	}
-
-	return false;
-}
-
 export function getLastActiveWindow<W extends ISimpleWindow>(windows: W[]): W {
 	const lastFocusedDate = Math.max.apply(Math, windows.map(window => window.lastFocusTime));
 
diff --git a/src/vs/code/test/node/windowsFinder.test.ts b/src/vs/code/test/node/windowsFinder.test.ts
index 6084a62ee43..985f06f0bbc 100644
--- a/src/vs/code/test/node/windowsFinder.test.ts
+++ b/src/vs/code/test/node/windowsFinder.test.ts
@@ -48,25 +48,22 @@ suite('WindowsFinder', () => {
 		})), null);
 		assert.equal(findBestWindowOrFolderForFile(options({
 			filePath: path.join(fixturesFolder, 'vscode_folder', 'file.txt'),
-			newWindow: true // We assume this implies 'editor' work mode, might need separate CLI option later.
+			newWindow: true
 		})), null);
 		assert.equal(findBestWindowOrFolderForFile(options({
 			filePath: path.join(fixturesFolder, 'vscode_folder', 'file.txt'),
-			reuseWindow: true // We assume this implies 'editor' work mode, might need separate CLI option later.
+			reuseWindow: true
 		})), null);
 		assert.equal(findBestWindowOrFolderForFile(options({
 			filePath: path.join(fixturesFolder, 'vscode_folder', 'file.txt'),
 			context: OpenContext.API
 		})), null);
-	});
-
-	test('New window with folder when no windows exist', () => {
 		assert.equal(findBestWindowOrFolderForFile(options({
 			filePath: path.join(fixturesFolder, 'vscode_folder', 'file.txt')
-		})), path.join(fixturesFolder, 'vscode_folder'));
+		})), null);
 		assert.equal(findBestWindowOrFolderForFile(options({
 			filePath: path.join(fixturesFolder, 'vscode_folder', 'new_folder', 'new_file.txt')
-		})), path.join(fixturesFolder, 'vscode_folder'));
+		})), null);
 	});
 
 	test('New window without folder when windows exist', () => {
@@ -106,19 +103,11 @@ suite('WindowsFinder', () => {
 			windows,
 			filePath: path.join(fixturesFolder, 'vscode_folder', 'file.txt')
 		})), vscodeFolderWindow);
-	});
-
-	test('Existing window wins over vscode folder if more specific', () => {
 		const window = { lastFocusTime: 1, openedFolderPath: path.join(fixturesFolder, 'vscode_folder', 'nested_folder') };
 		assert.equal(findBestWindowOrFolderForFile(options({
 			windows: [window],
 			filePath: path.join(fixturesFolder, 'vscode_folder', 'nested_folder', 'subfolder', 'file.txt')
 		})), window);
-		// check
-		assert.equal(findBestWindowOrFolderForFile(options({
-			windows: [window],
-			filePath: path.join(fixturesFolder, 'vscode_folder', 'nested_folder2', 'subfolder', 'file.txt')
-		})), path.join(fixturesFolder, 'vscode_folder'));
 	});
 
 	test('More specific existing window wins', () => {
@@ -130,25 +119,6 @@ suite('WindowsFinder', () => {
 		})), nestedFolderWindow);
 	});
 
-	test('VSCode folder wins over existing window if more specific', () => {
-		const window = { lastFocusTime: 1, openedFolderPath: path.join(fixturesFolder, 'vscode_folder') };
-		assert.equal(findBestWindowOrFolderForFile(options({
-			windows: [window],
-			filePath: path.join(fixturesFolder, 'vscode_folder', 'nested_vscode_folder', 'subfolder', 'file.txt')
-		})), path.join(fixturesFolder, 'vscode_folder', 'nested_vscode_folder'));
-		// check
-		assert.equal(findBestWindowOrFolderForFile(options({
-			windows: [window],
-			filePath: path.join(fixturesFolder, 'vscode_folder', 'nested_folder', 'subfolder', 'file.txt')
-		})), window);
-	});
-
-	test('More specific VSCode folder wins', () => {
-		assert.equal(findBestWindowOrFolderForFile(options({
-			filePath: path.join(fixturesFolder, 'vscode_folder', 'nested_vscode_folder', 'subfolder', 'file.txt')
-		})), path.join(fixturesFolder, 'vscode_folder', 'nested_vscode_folder'));
-	});
-
 	test('Workspace folder wins', () => {
 		const window = { lastFocusTime: 1, openedWorkspace: testWorkspace };
 		assert.equal(findBestWindowOrFolderForFile(options({