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Technology Stocks : How high will Microsoft fly?
MSFT 482.22-1.6%12:42 PM EST

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To: J. P. who wrote (7113)5/14/1998 11:23:00 AM
From: Hal Rubel  Read Replies (3) of 74651
 
Microsoft Monopoly

RE "You have just admitted there are alternatives (Mac) to Windows, shooting a hole in your own case against Microsoft."

Relax and Enjoy the Ride: ATT had a much smaller share of the total phone market than Microsoft's 96% (100% - Apple's 4%) share of the PC market. Its not a mater of size, its a mater of actions.

ATT just could not act in the marketplace without accidently taking advantage of its monopoly position. Even keeping a low profile and tip toeing through the market did not save ATT from reforms.

Microsoft, on the other hand, is accused of conspiring to actively abuse its monopoly derived powers in the market place. They may be characterized as having used their own rope to hang themselves for this very evident reason: many of the things they are alleged to have done would have been suicide for them in a competitive market! Being famous as a marketing-wise firm, it can be argued that many of their practices actually Evince a Self Awareness of their monopoly position, and this factor will probably be used against them to prove intent. That's the way prosecutors and the courts usually proceed.

I would imagine the results will be the same for Microsoft as for ATT except that there is the remote possibility of criminal charges being filed against some officers under other statutes.

Cheer Up: Microsoft will actually be better off by being restored to the status of 'Good Corporate Citizen". Being such a naturally superb marketing firm, Microsoft may be expected to clean up in the resulting competitively restructured market place. All will then be right in the world.

Why wouldn't this make all honest men happy?

HR
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