Brussels' Blind Spot: Microsoft's Dominance Sparks Global Action

Strategic Insights -

Karel Van Miert's crusade against Formula One has raised questions about his suitability to lead Europe's competition authority. Meanwhile, regulators worldwide are taking note of Microsoft's potentially anti-competitive practices, particularly in the Internet browser market. Microsoft's decision to give away its browser with Windows 95 has sparked a global response, with Japanese regulators raiding its Tokyo office and the US justice department pursuing a $1 million per day fine. As Microsoft's dominance in Europe's PC operating system market approaches 90%, Brussels' inaction on this issue is concerning, especially given the critical importance of the Internet to consumers and businesses.

Key Takeaways:

  • Formula One's economic importance to European consumers and businesses is minimal, making Brussels' focus on the sport puzzling.
  • Karel Van Miert, the European Commission's competition commissioner, lacks a reputation as a trust-buster, raising questions about his ability to lead the authority.
  • Microsoft's software interface, the Internet browser, has become a crucial tool for computer users, making the company's dominant position in the market a cause for concern.
  • Microsoft's strategy of giving away its browser with Windows 95 has sparked anti-competitive concerns, with regulators worldwide taking note.
  • The US justice department has won an early round in its battle to fine Microsoft $1 million per day until it "unbundles" its browser from Windows.
  • Japanese regulators have raided Microsoft's Tokyo office in response to the company's potentially anti-competitive practices.
  • Microsoft enjoys a better than 90% share of Europe's PC operating system market, raising concerns about its dominance.
  • Netscape, Microsoft's main competitor in the Internet browser market, is struggling to keep up with Microsoft's market-leading position.

Statistics:

  • 90%: Microsoft's share of Europe's PC operating system market (current)
  • 1 million:aily fine imposed by the US justice department on Microsoft unless it "unbundles" its browser from Windows
  • 95: Windows operating system for personal computers, which comes with Microsoft's browser
  • 90s: The decade in which the Internet has emerged as a significant commercial development
  • 1: The number of significant competitor Microsoft has in the Internet browser market (Netscape)

Sources:

  • "Brussels' Blind Spot: Microsoft's Dominance Sparks Global Action"
  • The Economist, Wednesday January 19, 1994: Jonathan Haskel and Michael Boskin did an analysis of the monopolistic part of Microsoft but not about the European market although they agree with the title "Microsoft: Monopolists extraordinaire"