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aneeshm
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Indore , Madhya Pradesh
Jul 2001 time: 10:46
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Come on , answer the question !
Last edited by aneeshm on 25-12-2004 at 14:08
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Adam Smith
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Maryland, USA
Jan 1970 time: 00:16
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quote: Originally posted by Urban Ranger
You're incorrect. The US anti-trust law (the Sherman Anti-Trust Act) does not prohibit having a monopoly in any single market sector. What it is against is leveraging such a monopoly in one market to gain dominance in another, which was exactly what the DoJ case was (orginally) about. | Not quite. Section 2 of the Sherman Act reads as follows.
quote: Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $10,000,000 if a corporation, or, if any other person, $350,000, or by imprisonment not exceeding three years, or by both said punishments, in the discretion of the court. |
http://www.usdoj.gov/atr/foia/divisionmanual/ch2.htm#a1
DOJ did not charge MS with monopolizing the OS market. In order to do so, DOJ would have had to show first that MS had a monopoly, and second, under the "rule of reason" would have had to show that the OS monopoly resulted from anticompetitive tactics, not from economic efficiencies. DOJ was not sure that they could win an argument that MS OS monopoly resulted in little or no efficiencies for users.
Instead, DOJ argued that MS engaged in attempted monopolization of the browser market. Using this approach DOJ did not have to worry about winning an efficiency argument, since attempted monopolization is per se illegal. DOJ won the case, but apparently worried that there was a significant chance they would either lose on appeal, or that the appeal would take so long that the damage would be irreversable. In my opinion DOJ should have insisted on a stronger remedy (something like what the EU decided) and took their chances on an expedited appeal.
ps: I conducted economic analysis of antitrust cases in a previous life.
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