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Date:      Thu, 9 Aug 2001 16:24:30 -0500
From:      Mike Meyer <mwm@mired.org>
To:        j mckitrick <jcm@FreeBSD-uk.eu.org>
Cc:        freebsd-chat@freebsd.org
Subject:   Re: Why anti-trust law?
Message-ID:  <15218.65422.812160.575351@guru.mired.org>
In-Reply-To: <20010809150404.C92172@dogma.freebsd-uk.eu.org>
References:  <20010809150404.C92172@dogma.freebsd-uk.eu.org>

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j mckitrick <jcm@FreeBSD-uk.eu.org> types:

Are you trying to generate discussion on the list? You're certainly
hitting questions that would do that.

> How would you argue to someone that we *need* anti-trust legislation, and
> that controlling monopoly power is not just punishing the successful?

I wouldn't, because I think they are generally a bad idea. I've as yet
to hear of an example where a corporate monopoly was broken up and the
public benefited.

On the other hand, being a monopoly - or collusion between competitors
- makes some business practices possible that aren't available without
monopoly power. Some of those - economy of scale, for instance - are
generally a good thing, and taking advantage of them can benefit
everyone.

Others allow a company to hurt or destroy competition without doing
without benefiting the public, which is pretty much bad for
everyone. A good example from the MSFT case is the ability to provide
alternative "shells" for users. MSFT forced everyone who wanted to
sell MSFT operating systems to sell it with the shell MSFT
provided. By doing so, they killed an entire market, most notably a
Netscape product. However, they also forced HP to drop their custom
shell, which resulted in a serious increase in HP's support calls and
costs. People having fewer problems with the custom shell is a strong
argument that taking it away from them does them damage.

The findings of the current case are full of instances of this kind of
behavior. MSFT has been punished for this kind of behavior in the
past. Since they can't seem to stop this, something needs to be done
to take that ability away from them. Personally, I like the idea of
forcing them to open-source all OS development, but that doesn't seem
likely.

To use their sports analogy, we're going to force Tiger Woods to play
with a blindfold because he's repeatedly been caught using
non-regulation balls in tournament play, and the warnings and fines
haven't made him stop.

	<mike
--
Mike Meyer <mwm@mired.org>			http://www.mired.org/home/mwm/
Independent WWW/Perforce/FreeBSD/Unix consultant, email for more information.

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