Recently, the department of justice concluded that the 2002 antitrust settlement between the US government and Microsoft has pretty much accomplished what it set out to do: Stop Microsoft from using its OS monopoly to gain monopoly status in other arenas. An 11 page report takes credit for other technology companies doing well namely:
- The increased competition Microsoft’s Internet Explorer faces from web browsers such as Mozilla’s Firefox, Opera, and Apple’s Safari;
- The popularity of Apple’s iTunes and Adobe’s Flash for handling multimedia content;
- The increasing use of web-based services for e-mail and other applications that historically would have been handled by local applications; and
- The decisions by Dell and Lenovo to offer the option of computers pre-loaded with a Linux operating system rather than Windows
Obviously, Microsoft feels that the consent decree has had a positive consumer oriented effect. "The judgment "defined clear rules for how Microsoft competes without preordaining winners in the technology marketplace," said Microsoft’s Senior VP Brad Smith.
New York, Louisiana, Maryland, Ohio and Wisconsin all felt Microsoft has lived up to its goals and in some cases surpassed. But in California, D.C., Connecticut, Iowa, Kansas, Minnesota, and Massachusetts all set that Microsoft’s grip on the industry is as strong as ever.
Meanwhile, across the pond Microsoft is a half a month away from its EU case verdict. A half a billion dollars hangs in the balance, and one of the judges in the case has announced his retirement on the day the decision is made public.
My Thoughts
Clearly, in both cases big brother is doing a terrible job making me believe they are what’s best for the technology sector. The United States is guilty of poor regulation of tax payers dollars leaving hundreds of millions with an inadequate infrastructure for the future of the Internet. More aggravating to the situation is California’s clear conflict of interest. With Apple being Located in California, the state would stand to gain considerable wealth should Apple’s OS market share topple that of Redmond’s.
While I believe that any company found guilty of extending it’s monopoly by means of owning one should be punished, the United States government does a horrible job of regulating the technology sector, and I don’t believe the EU will do any better. I believe that the EU has so far shown poor judgement and lack of professionalism in the case verses Microsoft, and setting a record shattering fine against Microsoft as well as taking away from them the ability to compete would establish a framework of protectionism in Europe that could do damage in the long run depending on what happens.
I think the Antitrust officials would better serve the public by dealing with companies like Ticketmaster who continue to be the only way to get tickets, and the NFL who’s exclusive deals have seen the likes of horrible TV services like Direct TV stay alive, and lesser football Game franchise like Madden Prosper.
What we need in the technology sector are a set of principles in which all companies must abide by. By establishing a framework of competition, we must look to see the core ingredients of such a thing. Openness, Collaboration, Standards, idiotic software patent abolition (I believe that in some cases a software patent is fine, as long as it accomplishes an idea that is novel, and not just an approach) and other issues, which directly foster competition moving forward.