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Technology Stocks : How high will Microsoft fly?
MSFT 478.53-1.0%Dec 12 9:30 AM EST

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To: t2 who wrote (19573)4/2/1999 4:28:00 PM
From: RTev  Read Replies (1) of 74651
 
-more flexibility to PC makers (start up screen)
-transparent pricing on Windows ie no discriminating against IBM.
-that bit about the exclusive deals (I think MSFT has already worked on these)
-access to Windows code on a timely basis for software developers.
- having an anti-trust division within the company so that they could advise the company of potential anti-trust activity (just like Intel).


I suspect that if there is a settlement, it will look very much like that but only if Microsoft agreed to a few more stringent conditions:

- [extending the first item in your list:] semi-public OEM contracts for the desktop OS. (Microsoft would be unable to keep the contracts secret. Any OEM would be able to see contracts signed by other OEMs.)

- [extending the fourth item:] Microsoft's internal compliance division would have veto power over new technologies added to Windows. It would also be able to review all business decisions -- even those from non-Windows divisions.

- the agreed controls would extend beyond the life of the current Windows9x code base and would apply to any client desktop OS (and maybe even to the server OS).

Those are the kinds of conditions that might make the plaintiffs step away from a demand for structural change in the company because they would represent a fundamental internal change. While I think Microsoft might be comfortable with the outline you presented, I doubt that they would accept the additions. On the other hand, I doubt that the plaintiffs would accept the first conditions without the more stringent controls I've mentioned. What the plaintiffs see as an historic pattern of antitrust non-compliance at Microsoft make them unlikely to accept simple one-time changes.

But there is a problem for Microsoft if (and when, most likely) the penalties come down to issues like this: Because they seem less draconian than fundamental structural changes, remedies like this have a better chance of standing up under appeal. Microsoft, which already is big enough to show some marked Dilbertian tendencies, would become even more cumbersome.
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