MSFT Internet Explorer vs. NSCP Navigator Message Board

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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: Daniel Schuh who wrote (22884)	3/2/1999 10:46:00 PM
From: Gerald R. Lampton	of 24154

Some every good posts, Dan. In answer to your question, Hovenkamp explains that, generally, conduct which does not pass muster under Sherman 1 when done as part of a contract or combination in restraint of trade also does not pass muster under Sherman 2 when done by a single monopolist. I do not know if you recall, but a while back I posted a Supreme Court case dealing with vertical boycotts under Section 1. A vertical boycott is where one manufacturer contractually obligates all of the distributors of its products not to deal in the products of a competitor. Sound familiar? I do not have the case in front of me, my recollection is that the Court applied a pretty lenient standard under the Rule of Reason to these vertical restraints of trade. It seems to me an argument could be made that the same test should be applied under Section 2 to a monopolist who does the same thing. At any rate, I think that, to win this case and not get saddled with a bunch of restrictions on its freedom of action, Microsoft is going to have to try to get the current rules changed. As a side note, you might be interested to know that Farber thinks the government is going to win: nt.excite.com

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