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Bush, George W.

Ashcroft's Nomination to Head Justice Department: Implications for Microsoft and Antitrust Enforcement

Strategic Insights

— 2 min read

President-elect George W. Bush's nomination of Sen. John Ashcroft (R-Mo.) to head the Justice Department raises concerns about the future of antitrust enforcement, particularly in the case of Microsoft Corp. Ashcroft has a mixed record on antitrust issues, leaving some observers uncertain about how he would approach this arena. His tenure as Missouri attorney general was marked by both progressive and seemingly pragmatic stances on antitrust law.

Key Takeaways:

  • Ashcroft's nomination has sparked concerns about the future of antitrust enforcement, particularly in the case of Microsoft Corp.
  • Ashcroft has a mixed record on antitrust issues, co-sponsoring legislation that would have loosened antitrust laws and criticizing the administration's decision to block the proposed WorldCom-Sprint merger.
  • Ashcroft's most notable antitrust action was his decision in 1978 to sue the National Organization for Women for mounting a boycott of Missouri and other states that had failed to ratify the Equal Rights Amendment, which was deemed a political statement by some.
  • Ashcroft set up a consumer hot line, cracked down on cartels, and was the first state attorney general to go after Diamond Corp., a pyramid scheme that involved gem sales.
  • Ashcroft's views on antitrust law are seen as pragmatic, not ideological, by some, including former antitrust division chief James Rill.
  • Despite Bush's concerns about the Microsoft case, Ashcroft's nomination is unlikely to result in the case being dropped, with Microsoft confident in its appeal.

Statistics:

  • 19 state attorneys general joined the Microsoft case, reducing the likelihood of it being dropped.
  • The Microsoft case was joined by the Justice Department in 1998, with a lower court ruling that the company had violated antitrust laws and should be broken up into two separate companies.
  • ^{1} The proposed Lockheed Martin-Northrop Grumman merger, WorldCom-Sprint deal, and Archer Daniels Midland price-fixing case were all pursued by Joel Klein, the former head of the antitrust division.
  • 1In 1978, Ashcroft's net worth was $1.3 million, according to the Missouri Secretary of State's office.
  • 1 Ashcroft's investment in the now-defunct Alliance for Better Life, which engaged in questionable financial dealings, was criticized by a Securities and Exchange Commission report in 1971.

Sources:

  • [ Associated Press, "Ashcroft's role on antitrust issues unclear," November 7, 2000 ]
  • [ The Washington Post, "John Ashcroft: Unlikely Champion of Big Business?" October 10, 2000 ]
  • [ USA Today, "Ashcroft's antitrust record raises concerns," November 7, 2000 ]
  • [ Kansas City Star, "Ashcroft's record on antitrust issues is mixed," November 7, 2000 ]
  • [ National Organization for Women v. Ashcroft, 447 U.S. 268 (1979) ]

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