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Technology Stocks : How high will Microsoft fly?
MSFT 473.99+0.4%Nov 24 3:59 PM EST
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To: taxman who wrote (41471)4/7/2000 12:01:00 AM
From: Captain Jack  Read Replies (1) of 74651
 
MICROSOFT JUDGMENT HAS FAR-REACHING IMPLICATIONS (Hong Kong Standard):

Apart from forcing the technology stock prices down worldwide, the court
judgment that Microsoft Corp. violated U.S. antitrust laws will have
implications for competition in the computer age.

U.S. District Judge Thomas Penfield Jackson said Microsoft violated the Sherman
Act, the same law used to crush monopolies from Standard Oil to AT&T.

However, the Microsoft suit has given new meanings to monopoly.

In the past, monopoly was formed when the government granted a franchise to
certain companies so that they could invest in new products and provide
essential services.

However, Microsoft attained monopoly in the Web browser business not because of
government franchise or by dumping.

The giant software firm was guilty - as the federal government, 19 states and
the District of Columbia alleged in the case that began in May 1998 - of
'unlawfully tying its Web browser' to its Windows operating system that
dominates the computer market worldwide.

In the trial judge's words, Microsoft's 'aggressive measures' with computer
manufacturers and Internet providers 'successfully ostracized' Navigator - a
browser made by Microsoft rival Netscape Communications - in favor of the
company's Internet Explorer.

Microsoft achieved a monopoly because of innovation. Because of the company's
Windows operating system has been so essential, computer manufacturers and
Internet providers have to use its attached Web browser to link to the Internet.

The spirit of the antitrust laws is to break monopoly in order not to block
innovation and progress.

(April 5)


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