Author(s)
Robert W. Hahn
Source
AEI-Brookings Joint Center for Regulatory Studies Related Publication 02-2, 2002
Summary
This paper looks at the settlement proposed in the antitrust suit against Microsoft.
Policy Relevance
Drawn-out lawsuits have costs for consumers and other businesses as well as the targeted firm, and compromises and settlement are sometimes best.
Main Points
- In 2002, a settlement was proposed in United States v. Microsoft Corporation. Some argued that it did not go far enough.
- The author notes that the lawsuit imposed costs on taxpayers, was congesting the courts, and that the lack of certainty about an outcome was hurting the whole technology sector.
- Prices for computer industry stocks moved with, not against, Microsoft’s share prices in response to antitrust enforcement actions.
- The settlement addresses all the conduct that the Court of Appeals found illegally hurt competitors.
