Microsoft Puts Its First Defense Witness, an M.I.T. Economist, on the Stand nytimes.com
An old article I missed, further demonstrating that Schmalensee's large mind is 100% certified hobgoblin-free.
The Government's case, Schmalensee wrote in his direct testimony, amounts to "speculation" based on a "morass of e-mails" from Microsoft executives that at first glance may seem damaging, but are not. Forget the atmospherics, he tells the court, and focus on the outcome -- what he insists is a lack of measurable harm, current or future, to consumers from Microsoft's business practices.
So much email, so little time- throw it all out. Only Bill knows the truth, but he forgot.
His testimony is an advocate's brief, so Schmalensee, like the 12 prosecution witnesses, seems to interpret the evidence to suit his argument. For example, when the experience of America Online Inc. supports the Justice Department, Schmalensee refers to the leading online services company as "Microsoft's fickle partner and bitter rival."
But roughly 200 pages later in his testimony, Schmalensee cites America Online's success against Microsoft's MSN online service as proof that bundled placement on the Windows desktop screen -- an advantage MSN enjoyed since 1995 -- does not thwart rival products from being distributed. America Online, Schmalensee writes, "skillfully exploited the many distribution channels open to it (or any other competitor) to beat MSN."
Far from being the most valuable real estate in cyberspace, Schmalensee declares, the Windows desktop is not an "even particularly important channel of distribution" -- a view not held by Microsoft executives, according to several internal e-mail messages in evidence.
Schmalensee also attacks the Government's case for trying to apply outdated "textbook models of competition" and "chalk-board theories" to the fast-changing facts of the software industry.
The Government replies that he economist's stance amounts to trying to get an antitrust exemption for Microsoft and the software business. "He is very close to saying you should never intervene in dynamic, high-technology industries," said Daniel Rubinfeld, a senior economic adviser to the Justice Department's antitrust division.
I've always advocated statutory immunity for Microsoft myself. If the legions of consumers who have no desire for an OS that sucks less would just write their representatives like they ought to, Microsoft could joint MLB on the exemption list. |
