Former Supreme Court Nominee Robert Bork Warns of Antitrust Case Against Microsoft

Strategic Insights -

Former Supreme Court nominee Robert Bork, hired by Netscape Communications Corp., has expressed concerns about Microsoft's anticompetitive practices and called for government action against the company. Bork appeared on CBS's Face the Nation, citing documents that display a clear intent to monopolize and restrictive practices to prevent competition. He described a monopolization case against Microsoft as "one of those rare cases," saying it is rare for the government to pursue such a case but that Microsoft's actions justify it. Microsoft's legal consultant, Charles "Rick" Rule, responded that recent claims against the company "don't stand up to scrutiny."

Key Takeaways:

  • Robert Bork, a former federal judge, has been hired by Netscape Communications Corp. to lobby the Justice Department to file an antitrust case against Microsoft.
  • Bork cited restrictive agreements between Microsoft and Internet companies that limited how Internet companies could promote Netscape's browser as evidence of Microsoft's anticompetitive practices.
  • Microsoft's legal consultant, Charles "Rick" Rule, defended the company's actions as "very legitimate cross-marketing agreements" but acknowledged that changes have been made to make them less restrictive.
  • Bork believes that antitrust laws can be applied to Microsoft's actions, stating that "you have the monopoly, you have the expressed intent to stifle competition, you have the practices that are not necessary for consumers but to crush rivals."
  • Bork did not specify possible solutions to diluting Microsoft's power in the marketplace but suggested banning restrictive practices.
  • The Justice Department is considering filing an antitrust case against Microsoft.

Statistics:

  • 60% of people on the World Wide Web use Netscape's Internet browser (Source: Netscape Communications Corp.)
  • Microsoft's Internet Explorer is the biggest competitor to Netscape's browser.
  • Under intense scrutiny by the Justice Department, Microsoft has announced changes to restrictive contracts with Internet companies to make them less restrictive.

Sources:

  • Face the Nation (CBS)
  • Netscape Communications Corp. (no date mentioned)
  • Robert Bork (no date mentioned)
  • Charles "Rick" Rule (no date mentioned)