Linked by Thom Holwerda on Mon 17th Sep 2007 15:17 UTC, submitted by Rahul
Legal Microsoft suffered a stunning defeat on Monday when a European Union court backed a European Commission ruling that the US software giant illegally abused its market power to crush competitors. The European Union's second-highest court dismissed the company's appeal on all substantive points of the 2004 antitrustruling. The court said Microsoft, the world's largest software maker, was unjustified in tying new applications to its Windows operating system in a way that harmed consumer choice. The verdict, which may be appealed only on points of law and not of fact, could force Microsoft to change its business practices.
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RE: Too little, too late
by Spellcheck on Mon 17th Sep 2007 23:58 UTC in reply to "Too little, too late"
Spellcheck
Member since:
2007-01-20

That is not an AT&T-style breakup. Stop getting your bad analogies from the pitiful reporting at the WSJ.

AT&T was turned into geographical monopolies, more like TV cable companies, because of the fixed costs of the lines. Also remember the complaints in the 19th century of the railroad: people didn't understand the trouble of accounting for their high fixed costs, so they regulated it to death ("railroaded"). As a result, when it was partly nationalized during WWI, the government found out that they were nearly brankrupt as a result of that regulation (relating mostly to prices and expansion).

There are economic similarities in software (and pharma) companies' high fixed-wrt-sales R&D costs and low variable-wrt-sales replication costs. And that is still a hard circumstance to properly account for. However, their accounting situation is not at issue with this so-called regulation at all.

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