Author(s)
George Priest
Source
The Wall Street Journal, November 4, 2002; AEI-Brookings Joint Center Policy Matters 02-50
Summary
This short piece looks at the benefits of ending the case against Microsoft.
Policy Relevance
Microsoft's size and power came from offering a quality, standard product to consumers. Competition policies punishing success in the market would harm consumers.
Main Points
- In 2002, the Department of Justice (DOJ) concluded its antitrust case against Microsoft. DOJ’s theory was weak to begin with.
- DOJ admitted that Microsoft’s Windows operating system dominated the market because it was a superior product, not because of illegal acts.
- Microsoft’s success in the market constantly reminded everyone of the enormous consumer benefits of having a standard operating system.
- A remedy that ended Microsoft’s dominance would harm consumers.
- Why not break up Microsoft, as AT&T was broken up? AT&T got its monopoly through regulation, not by offering a superior product.
- Proposals to break up Microsoft or regulate it like AT&T were rightly rejected.
