United States v. Microsoft: A Failure of Antitrust in the New Economy

Title: United States v. Microsoft: A Failure of Antitrust in the New Economy

Research Question: How did the United States v. Microsoft antitrust case affect the technology industry and consumer welfare?

Methodology: The study analyzed the legal proceedings, expert testimonies, and economic theories presented during the United States v. Microsoft antitrust case. It also examined the impact of the case on the technology industry and consumer welfare in the years following the trial.

Results: The research found that the case was based on a novel theory of predation, which was later criticized for its flaws. The court found Microsoft guilty of monopolization, anti-competitive bundling of Internet Explorer with the Windows operating system, and attempts to monopolize the internet browser market. The case had significant implications for the technology industry, leading to increased scrutiny of large tech companies and changes in their business practices. However, the study also found that the case had unintended negative consequences, such as stifling innovation and competition in the industry.

Implications: The United States v. Microsoft case highlighted the challenges of applying antitrust laws to the rapidly evolving technology industry. It underscored the need for clear and effective economic theories to guide antitrust enforcement. The case also had far-reaching implications for the tech industry, leading to changes in business practices and increased regulation. However, the study also suggested that the case may have had unintended negative consequences, such as stifling innovation and competition.

Link to Article: https://arxiv.org/abs/0109069v1 Authors: arXiv ID: 0109069v1