Abstracts » Business, general

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.

Justice, Public Order, and Safety Activities, Dept of Justice, JUSTICE, PUBLIC ORDER, AND SAFETY, Laws, regulations and rules, United States. Department of Justice, Government Regulation

---

'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.

Company legal issue, Litigation, Lawsuit/litigation

---

Some parts © 2012 Advameg, Inc.