Justice Department Scores Triumph Over Microsoft in Antitrust Case

In a significant victory for consumer protection, the United States Justice Department has forced Microsoft to cancel its proposed $2 billion acquisition of Intuit Inc., a move that would have substantially reduced competition in the market for personal finance software. This intervention is a stark contrast to the company's earlier handling of the antitrust case against Microsoft, where the Justice Department was accused of administering a wrist slap. The cancellation of the deal is expected to lead to renewed competition between Microsoft and Intuit, ultimately resulting in better products at lower prices.

Key Takeaways:

• The Justice Department's intervention has prevented a potential monopoly in the personal finance software market, where Intuit's Quicken holds a 70% market share.
• Microsoft sought to acquire Intuit to gain dominance in the market, but the Justice Department argued that this would have led to an unfair advantage due to Microsoft's existing market power.
• The collapse of the Intuit deal leaves unresolved the question of whether Microsoft uses its dominance of operating systems to give its other products an unfair advantage.
• This is a significant victory for consumer protection, as renewed competition between Microsoft and Intuit will likely result in better products and lower prices for consumers.
• The Justice Department's actions demonstrate its renewed commitment to enforcing antitrust laws and protecting consumers from potential monopolies.
• Microsoft's attempt to acquire Intuit was seen as a way to address its lagging personal finance software offerings, but ultimately, it proved to be a failed strategy.

Statistics:

• Microsoft's proposed acquisition of Intuit would have been worth $2 billion.
• Quicken, Intuit's personal finance software, holds a 70% market share in the personal finance software market.
• The deal's collapse is expected to lead to renewed competition between Microsoft and Intuit, resulting in better products and lower prices for consumers.
• The Justice Department's actions demonstrate its commitment to policing the tech industry and protecting consumers from potential monopolies.

Sources:

• "The same Justice Department that was accused a few months ago of administering a mere wrist slap to the Microsoft Corporation in an antitrust case has now come back to score a resounding triumph over the software giant in a different case." (Time Magazine, no date)
• "Microsoft, whose own personal finance software had been lagging, sought to buy its way into dominance by purchasing Intuit, whose Quicken financial software holds some 70 percent of the market." (original article)
• "The collapse of the Intuit deal leaves unresolved a far bigger question that has haunted government investigations of Microsoft, namely whether Microsoft uses its dominance of operating systems for personal computers to give its other products an unfair advantage." (original article)