Re: [SLUG] Breaking Up MS - The Fix Is At Hand

[z2192363 <z2192363@nospam.pop3.student.unsw.edu.au>]

Although breaking up Microsoft may go some way to increasing 
competition and innovation, what is there to stop something similar 
from happening again?

Others on this list have mentioned that MS has acquired other 
companies in order to sell or bundle their technologies with their own 
products.  This both reduces competition and innovation.

One legal way to prevent this from happening again or continuing is to 
change the law relating to takeovers.  It is relatively easy for US 
companies to swallow each other up in the same way Microsoft has done 
to many companies.  They can also purchase companies with a good 
invention and put them on the shelf so their products never get used.  
But here in Australia, takeovers are much harder and are usually 
subject to scrutiny in regards to competition before they can go ahead 
(eg. with Telstra's and Eisa's (successful?) attempted takeovers of 
OzEmail).  Another (non-IT) example is the restriction on mergers 
between the big 4 banks.  If the US had similar requirements, they 
would go a long way to maintaining competition and innovation.


Whether or not a breakup of MS will actually do anything significant 
can only be told by time I think.  In Japan, it is common practice for 
groups of companies to operate as a unified body.  There is no holding 
company that controls any company, nor are there any legal matters 
binding the companies together.  They simply have directors which hold 
positions at more than one firm within the group and assist other 
companies within the group.  If Microsoft is broken up into 2,3,4 or 
however many parts, what is to stop it from operating in a similar 
manner to these firms and continuing its practices?


Whilst breaking up MS might do something in the short run (if nothing 
more than disrupt their operations for a period of time), it doesn't 
do anything to prevent it form happening again or prevent a newly 
structured Microsoft from continuing to dominate the market.


one thing tho - I think that MS can still make an appeal and get this 
decision overturned or the penalty reduced.  Even if it doesn't 
succeed in the appeal, it could delay the implementation of the 
penalty for years.

so what does everyone think?  am i just full of craP? = )

Jin
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