Antitrust & Competition Policy Blog

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Monday, September 17, 2007

European Antitrust: Is Big Bad Again?

Posted by Luke Froeb

Every MBA program in every country teaches students to compete using the "four P's" of marketing: price, product, place, and promotion. So when Microsoft began distributing its media player with its operating system, it would seem that it was competing by taking advantage of its low cost distribution channel ("place") and by improving functionality ("product.")

Not so fast. Today, the Court of First Instance ratified the European Commission's case against Microsoft, accusing it of "abusing its dominant position" by bundling its media player with Windows, and by refusing to supply "inter-operability information" to competitors. The Court seemed to be saying that because Microsoft was taking advantage of its advantages, it violated the antitrust laws.  (Click here to read more).

http://lawprofessors.typepad.com/antitrustprof_blog/2007/09/european-antitr.html

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