Corel chief Michael Cowpland says: "Don't break up Microsoft" Ottawa Citizen
ottawacitizen.com
Don't break up Microsoft: Cowpland
Microsoft: Cowpland Split would lead to
multiple monopolies, says Corel chief
The Canadian Press
TORONTO -- Michael Cowpland, the maverick chief executive of Ottawa-based software
maker Corel Corp., believes breaking up Microsoft Corp. would be a big mistake.
In a Globe and Mail opinion piece published yesterday, Mr. Cowpland insists that although his company competes with
Microsoft -- in the mid-1990s he embarked on a disastrous business strategy to end the computer giant's domination of
the office software market -- he also considers the software giant built by Bill Gates to be a "partner" to Corel.
Mr. Cowpland said that news reports have suggested Corel and its competitors would be clamouring for a Microsoft
breakup, a possible penalty since a U.S. federal judge found Microsoft guilty of anticompetitive behaviour on Monday.
"A Microsoft breakup would only split one huge monopoly into multiple monopolies working in tandem," Mr. Cowpland said.
"A breakup is unlikely to weaken the company's position in the marketplace. In fact, some
analysts have argued it will only make Microsoft more nimble and stronger in the mid-term."
Rather than split Microsoft into a collection of "Baby Bills," he said, a better solution would be for
the U.S. Justice Department to set up rules that prohibit backroom deals, which suppress competition.
Mr. Cowpland also recommended:
- Authorities should demand greater transparency and accountability from Microsoft in its business practices.
- Cross-bundling of products -- when Microsoft offers computer makers a cut-rate deal on Windows software if they agree to buy it with their hardware package -- should be put to an end. "In this environment, it becomes impossible for other software vendors, such as Corel, to market their products competitively," Mr. Cowpland wrote. "More importantly, consumers are deprived of the choice without even knowing it."
- The U.S. Justice Department should ensure the software industry adheres to the standards required in a fair and open competitive landscape.
Mr. Cowpland believes that consumers want alternatives to Microsoft and points to the success of Linux, an open operating system that can be downloaded for free from the Internet, as proof. Corel and competitors such as U.S.-based Red Hat have seen their stock price soar over the past year as they began to develop Linux products. "While ordering structural changes to Microsoft may satisfy many people who seek vindication for past wrongs, it wouldn't address the fundamental issue," he concluded.
"The U.S. Department of Justice must ensure that innovation and ideas are encouraged
and supported, not stifled by the backroom deals of a corporate giant." |
