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Response to Comments: /TotW/microsoft_history.html

from Peter Eirich (Eirich@erols.com)
I appreciated reading your cogent analysis, but I do think you missed 1/3 of the triad when you wrote

However, the dilemma of antitrust will remain: bigness vs. freedom of choice, competition vs. economies of scale.

without adding also: "fair play" vs. unethical business practices

Your statement "A second possible direction would be to have greater tolerance for monopolies that played fair" was a step toward this conclusion, but did not go far enough.

Indeed, I think the major impact of the MS trial will be in the "fair play" area. For this reason, I cannot agree with your statement:

" ... Technology also seems to be moving sufficiently rapidly to make whatever antitrust remedy is reached in that case of doubtful relevance: The market and the industry will have changed too much. "

If MS gets past this trial with only a slap-on-the-wrist, many other companies will be encouraged to adopt extreme marketing practices like those described for MS in the judge's findings. This could cause a widespread deterioration of the high tech marketplace. As there would be less competition going forward, technical progress would slow generally (just as MS has made very little technical innovation for years), and prices would cease to decline (becoming stable just as MS prices have done). I would call that outcome a major impact on the economy.

Conversely, if MS is seen as being called to task over their practices, then other technology companies will be able to take the risk of competing in areas that were previously too close to MS' sphere of influence to be "safe". In this scenario, high tech will undergo yet another surge of creativity and growth.

Thanks again for putting out a thought provoking piece.

(posted 8730 days ago)

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