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Strategies & Market Trends : Rande Is . . . HOME
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To: Rande Is who wrote (22656)3/29/2000 11:35:00 AM
From: Arrow Hd.  Read Replies (1) of 57584
 
Rande, regarding MSFT and the DOJ, I agree that there is a technical difficulty in enforcing a settlement and this could very well be the big negotiation issue. Both sides most likely want a settlement but MSFT wants a directive of some kind without much substance and the DOJ could be requiring a Consent Decree which legally is in addition to, and probably more restrictive than, current anti trust law. How is a CD enforced? Complainants come directly to the DOJ and file their briefs and the DOJ investigates which is a continuing nightmare of gov't intrusion. And a CD I believe carries criminal statutes in addition to any civil liabilities either the DOJ or the complainant could file.
The good news for MSFT is that CDs today have a sunset. Unfortunately, MSFT could have avoided all of this and kept 98% of their business model by agreeing up front to snap out the browser and not intimidate the PC industry. Packaging is not generally a problem if snap-out exists and the package's selling price includes enough dollars to spread over each offering piece within the bundle so that each offering piece is profitable. Giving away a browser when that business sector is established already, bundling with out snap-out, questionable profitability models and brow-beating are all problematic business practices and the DOJ is going to find an enforceable way to insure current anti-trust doctrine is followed. That said, I do not believe it is in the industry's or national interest to break them up.
Just some opinions, nothing more.
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