Microsoft Antitrust Case Falters on Key Issues, Argues Small Business Survival Committee

Strategic Insights -

Raymond J. Keating, chief economist of the Small Business Survival Committee (SBSC), has issued a scathing critique of Judge Thomas Penfield Jackson's "Findings of Fact" in the Microsoft antitrust case. Keating argues that the case falls short on three major issues, including the definition of the relevant market, the understanding of the high-tech industry, and the treatment of consumers.

Key Takeaways:

  • The relevant market of Intel-based PCs as defined by Judge Jackson and the Department of Justice is far too narrow, excluding Apple Computer, network computers, and other information appliances.
  • Judge Jackson's findings suffer from an inability to comprehend the dynamic nature of the high-tech industry, confusing chalkboard models of perfect competition with real-world economic processes.
  • Microsoft's success in the market is a result of serving consumers well, and its current market position is a testament to its ability to innovate and compete with other companies.
  • The antitrust case against Microsoft and Judge Jackson's "Findings of Fact" amount to an anti-consumer crusade, disregarding the role of consumers in determining market outcomes.
  • Keating argues that temporary monopolies are a natural result of innovation in the economy, and Microsoft's market share is a temporary phenomenon that will eventually be eroded by new competitors.
  • The SBSC is a nonpartisan, nonprofit small business advocacy group with over 50,000 members across the nation.

Statistics:

  • The relevant market of Intel-based PCs as defined by Judge Jackson and the Department of Justice excludes Apple Computer, network computers, and other information appliances.
  • According to Keating, the high-tech industry is a dynamic and innovative sector, where companies like Microsoft can gain market share through innovation and competition.
  • Over 50,000 small businesses across the nation are members of the Small Business Survival Committee, a nonpartisan and nonprofit advocacy group.

Sources:

  • PRNewswire, "Small Business Survival Committee Chief Economist Raymond J. Keating Critiques Judge Jackson's Findings of Fact in Microsoft Antitrust Case"
  • Small Business Survival Committee (SBSC) website at www.sbsc.org
  • SMALL BUSINESS SURVIVAL COMMITTEE, "Weekly Cybercolumn by Raymond J. Keating: A Critique of Judge Jackson's Findings of Fact"