Dell sees government intrusion as a potential threat to better products and Cisco:
Dell Calls Antitrust Laws 'Outdated'
When Applied to Technology Firms
By SHARON CLEARY
THE WALL STREET JOURNAL INTERACTIVE EDITION
SQUAW VALLEY, Calif. -- Dell Computer Corp. Chairman Michael Dell was peppered Monday with questions about longtime partner Microsoft Corp., in his first opportunity to address the longtime partner's legal problems following the release of the government's proposed remedies.
Late Friday, as expected, the government asked that a federal judge split the software giant into two companies (see article).
Settled into a comfy-looking leather club chair on the stage of Red Herring's Venture 2000 conference here, Mr. Dell got down to business. Or rather, Microsoft's business.
When asked what his take on the Justice Department's proposal to split Microsoft into two companies, the head of the No. 1 direct seller of personal computers came to Microsoft's defense -- albeit cautiously.
"The laws being cited are outdated given the environment we're in," said Mr. Dell.
Mr. Dell also said "if a company with high market share can't have products that work better together," then companies like networking-gear giant Cisco Systems Inc. would potentially be in violation of government antitrust law as well.
Did Mr. Dell every feel that Microsoft was in any way taking its leverage and abusing the company's dominance in the market? "Microsoft tries to gain the dominant market share in every space they move into," he said.
He noted that "there's no question that Microsoft is competitive" -- a statement that was greeted with muffled guffaws from the audience of chief executives, venture capitalists and journalists -- and said at the end of the day it comes down to what products and services Microsoft's customers want.
Besides, he said, "I don't think consumers want the Justice Department architecting software."
But Mr. Dell hasn't lost all hope in government. Mr. Dell, whose company is based in Round Rock, Texas, said he is supporting home-state candidate George W. Bush for the presidency because, "He understands our industry ... and he believes in capitalism."
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