U.S. v. Microsoft: the bigger question
Article Abstract:
The Justice Department's recent settlement with Microsoft demonstrates how misguided Government interference can fundamentally weaken US capacity for technological innovation. A successful Justice Department strategy will create two disastrous precedents. First, it will trigger numerous lawsuits and Government actions for all companies threatened by other companies' bundling of previously separate capabilities. Second, drawing the Justice Department into the industry will politicize competition and damage progress. A select number of Microsoft rivals succeeded in getting the Government to act on their behalf in the recent case. Technological innovation in the new economy depends on combining various capabilities, which allows third parties to create a new level of solutions. Netscape and Sun Microsystems, key rivals of Microsoft, have benefited from integration capabilities. The government, meanwhile, seeks help from the courts to disrupt this structure.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
'Microsofties' say they're as right as rain
Article Abstract:
Microsoft employees believe the Justice Department's antitrust lawsuit against their company represents Government ignorance. The employees say Microsoft's actions foreshadow ideal capitalism and demonstrate their independence. Many of these self-described Microsofties remain loyal to the software company and its chairman, William H. Gates, as the company experiences only a 7% turnover rate. By comparison, many Silicon Valley counterparts switch companies frequently. Upheavals in the technology sector are forcing Microsoft to raise its level of competition, even though no rival has emerged to challenge its Windows OS. By comparison, the Government is imposing traditional antitrust measures against Microsoft in an attempt to foster competition. Microsoft also says its employee recruitment, which will total 3,000 in 1998, stresses ideals as well as intelligence.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: E-mail flaws make usually confident users feel uneasy. Microsoft rebuffed in bid to exclude expert in antitrust case
- Abstracts: Microsoft trial promises stars, impact, legal fireworks. Microsoft seeks allies to halt antitrust move
- Abstracts: Microsoft to buy e-mail start-up in stock deal. Microsoft, in a swipe at Sun, introduces new tools to use Java only on Windows
- Abstracts: Wireless TV finally gets validation; Sprint and MCI acquire many small carriers. Qwest set to acquire LCI for $4.4 billion in stock: deal to create a top long-distance carrier
- Abstracts: Drugstore industry. part 7