FC: Responses to DOJ and Microsoft agree to settle antitrust case

From: Declan McCullagh (declanat_private)
Date: Fri Nov 02 2001 - 08:52:11 PST

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    Previous article:
    
    "It's official: DOJ and Microsoft agree to settle antitrust case"
    http://www.politechbot.com/p-02741.html
    
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    Date: Fri, 2 Nov 2001 10:47:04 -0500 (EST)
    From: Charles Platt <cpat_private>
    To: politechat_private
    Cc: Declan McCullagh <declanat_private>
    Subject: Re: FC: It's official: DOJ and Microsoft agree to settle antitrust 
    case
    In-Reply-To: <5.1.0.14.0.20011102095916.027f2430at_private>
    
    The following message may be distributed with my name attached if you
    wish.
    
    On Fri, 2 Nov 2001, Declan McCullagh wrote:
    
     > just what did this lawsuit accomplish, beyond enriching lawyers,
     > eating up tens of millions of tax dollars, and launching a flotilla of
     > anklebiting private antitrust suits?
    
    Declan, it accomplished a tremendous amount, all of it beneficial to the
    federal government. First and most important, it reaffirmed the power of
    the government. Before the Microsoft antitrust suit, Silicon Valley
    entrepreneurs were acting as if they were immune from legislation. They
    donated virtually nothing to political campaigns, and they shared a "screw
    you" attitude toward DC. The Microsoft suit reminded everyone where the
    real power is. I would expect considerably more expressions of humility
    (bogus or otherwise) along with political contributions, in the future.
    Regardless of the outcome of the suit, it demonstrated that the Justice
    Department can impose such heavy legal costs, and can waste so much of a
    company's time, anyone would be crazy to invite this kind of a major
    hassle. Like a protection racket, anti-trust legislation warns companies
    to behave themselves if they want to avoid being ruined. "Nice little
    software business you have here. Be a shame if something happened to it."
    
    The second accomplishment was to burst the bubble of "irrational
    exuberance." The Microsoft suit marked the beginning of the end, in this
    respect. It demonstrated that tech companies were not untouchable, not
    immune from boring old realities of government and commerce. They could be
    nibbled to death by financial pundits like anyone else, as well as being
    harassed and threatened and sued into oblivion just like anyone else.
    
    The major shifts in wealth, 2 to 3 years ago, must have caused alarm in
    Washington, where people sincerely believe that they are the ones with the
    real power, who run the country. They must have begun to feel--well,
    potentially irrelevant.
    
    And now--praise Allah!--they have terrorism to deal with. No matter that
    their responses so far have been almost inconceivably incompetent: The
    terrorist threat has made government seem necessary again. The focus of
    attention has shifted from Silicon Valley back to Washington DC. The
    military-industrial complex is singing "Happy days are here again" (sotto
    voce, of course). And if this nasty little war slows progress in peaceful
    uses of science (just as Vietnam pretty much killed the manned space
    program), well, what could be better, from the point of view of
    techno-illiterate federal legislators?
    
    Microsoft is in the position of Winston Smith in 1984, after his period of
    torture was complete. He could return to his everyday life and even have
    liaisons with his former lover (contrary to state policy), because the
    state had completed its punishment of him, had demonstrated its power, and
    no longer had any interest in him. The exercise of power, purely for its
    own sake, was the only point of the enterprise, according to Orwell.
    
    Meanwhile, just as in 1984, we are now allying ourselves with our old
    enemies (Russia, in particular) while vowing endless war against our old
    friends (Bin Laden). Because, there is nothing better than war to distract
    the population from private pleasurable goals and reorient everyone toward
    Big Brother, who alone can protect us from the monsters he has created.
    
    I hope this answers your question.
    
    --Charles
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    Date: Fri, 02 Nov 2001 10:44:19 -0500
    To: declanat_private
    From: Donald Weightman <dweightmanat_private>
    Subject: Re: FC: It's official: DOJ and Microsoft agree to settle
       antitrust case
    In-Reply-To: <5.1.0.14.0.20011102095916.027f2430at_private>
    
    The lawsuit might have accomplished a lot, but for the DOJ backpedaling in 
    recent months. Aside from missing the chance to fence in Gates, there is 
    now  with the settlement less than optimal clarity on what the legal regime 
    is for industries with strong network effects.
    
    dw
    
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    Date: Fri, 02 Nov 2001 10:19:17 -0800
    From: Michael Maynard <mmaynardat_private>
    To: declanat_private
    Subject: Re: FC: It's official: DOJ and Microsoft agree to settle antitrust 
    case
    
    Declan - I've been on top of this case and has analyzed it in depth for
    many years now. This settlement is gutless. It places no real restrictions
    on Microsoft nor does anything to slow down its continued horizontal
    or vertical market antitrust violations.
    
    We should all be very scared about Microsoft's entry into the telephony/
    telecom business. With the exception of owning assets in the local telephone
    loop (which Time Warner AOL does), Microsoft can have complete worldwide
    vertical telecom integration from the desktop through communications
    hookups (local and satellite), the computer/telecom equipment used (NT Servers,
    WinPhones) through Internet content (IE + MSN + Media Player) through 
    programming
    content (TiVo, MS-NBC).
    
    The leveraging key is the control of 97% of desktop/laptop computers' operating
    system. Unless forced to provide the Windows source code, so that Linux or
    another operating system could provide a real-time, native interface to
    Windows-based programs, Microsoft still has monopolistic control over the most
    important areas of the industry - the desktop and server operating systems.
    
    Hopefully, the state AG's will recognize this deal to be the sell-out that it
    really is
    and not sign on.
    
    *********
    
    Date: Fri, 02 Nov 2001 07:43:22 -0800
    From: Norman MacLeod <gaelwolfat_private>
    Organization: Gaelic Wolf Consulting
    To: declanat_private
    Subject: Re: FC: It's official: DOJ and Microsoft agree to settle antitrust 
    case
    
    Declan --
    
    My personal take on this is that the United States government has decided 
    that one of the nation's most successful corporations should not remain 
    under legal pressure during a protracted war.  If you look at the "deal" 
    with that in mind, I think you'll see some things jumping out at you that 
    you might not otherwise notice on a cursory review.
    
    ...Just my opinion, of course...your mileage may vary...
    
        Norman MacLeod
    
    *********
    
    Date: Fri, 2 Nov 2001 10:43:09 -0500
    From: Chris Farris <chrisat_private>
    To: Declan McCullagh <declanat_private>
    Subject: Re: FC: It's official: DOJ and Microsoft agree to settle antitrust 
    case
    
    On Fri, Nov 02, 2001 at 10:01:45AM -0500, Declan McCullagh wrote:
     > [Well, so much for that. Anyone want to speculate on how different this
     > deal is from what Microsoft has been offering in settlement talks since
     > early 1998? If the differences are minimal and if the judge accepts this
     > deal, then just what did this lawsuit accomplish, beyond enriching lawyers,
     > eating up tens of millions of tax dollars, and launching a flotilla of
     > anklebiting private antitrust suits? --Declan]
    
    It helped crash the Nasdaq....
    
    Chris
    
    -- 
    Chris Farris				chris at room17.com	
    PrimeHarbor Technologies 		www.primeharbor.com			
    "I've taken more out of alcohol than alcohol has taken out of me"
    					-Winston Churchill
    
    *********
    
    
    
    
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