Microsoft Antitrust Case

The Battle for Control of the Internet

• The US government's accusations against Microsoft are rooted in the company's alleged anti-competitive practices, including monopolistic behavior, unfair licensing agreements, and predatory pricing strategies, all of which are said to stifle innovation and limit consumer choice.
• Microsoft is the dominant player in the computer operating system market, with its Windows operating system being the most widely used.
• Venture capitalist Derek Proudian describes Microsoft as "the water we swim in", implying that the company has a significant impact on the entire market.

ZIP2 and Elon Musk

• ZIP2 is a California company that provides online access to information about cities, founded by 27-year-old Elon Musk.
• Musk started the company at the age of 23 and has since become a success story, with his own command center and thriving business.
• Microsoft has tried to get a hold in ZIP2's market but has so far failed.

The Anti-Trust Case

• The US government's Chief Trust Buster, Joel Klein, is leading the charge against Microsoft, accusing the company of unfair business practices.
• Microsoft's attorney, Bill Newcomb, argues that the company is a fair competitor and has benefited consumers by providing better technology at lower prices.
• The government complains that Microsoft's bundling of its Internet Explorer browser with its Windows operating system unfairly blocks competitors like Netscape.

Reactions from the Industry

• T.J. Rogers, founder and CEO of Cypress Semiconductors, defends Microsoft, saying that if you're not willing to engage in competition, you shouldn't be in Silicon Valley.
• Peter Dougherty, founder of Digital Bitcasting, accuses Microsoft of unfair tactics, saying that the company's software overwrites his technology, making it unusable.
• Dougherty has had to channel his business into areas that don't directly compete with Microsoft and thinks government intervention may be needed to control the company.

Historical Context

• In 1969, the US government filed an anti-trust suit against IBM, which dragged on for 13 years before being dropped.
• IBM was once thought to be arrogant, but other companies like Apple eventually surpassed it, making it one of many players in the industry.
• The outcome of the Microsoft case is uncertain, with many experts predicting that the company could eventually fall due to its own weight, just like IBM.