Microsoft’s European Experience Troubling for Other U.S. Companies

Competition Policy & Antitrust

Article Snapshot

Author(s)

Stephen Haber, F. Scott Kieff and Troy Paredes

Source

San Jose Mercury News, March 15, 2007, pg. 12A

Summary

This op-ed looks at the European Union’s case against Microsoft.

Policy Relevance

When competition policy gives officials broad discretion, abuses are likely, and harm growth and trade.

Main Points

  • The European Union’s economic case against Microsoft was very weak, and had no reasonable justification.

  • This suggests that European competition authorities used competition law as a pretext for “shaking down” Microsoft.

  • Such actions benefited the regulators by enhancing their reputations and/or made their agency more important.

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