Monday, September 24, 2007

AAI - In Defense of the EU's Microsoft Ruling

Posted by D. Daniel Sokol

Lest you think that the blog does not cover a diversity of viewpoints on various antitrust matters, this morning I read the American Antitrust Institutes' comments on the Microsoft decision.  The AAI  defends the decision and lambastes AAG Tom Barnett's comments on the EU.  Highlights of the AAI paper include the following statements:

On the DOJ Press Release

"[O]ne might think that it was the DOJ that had been found guilty and that it is the DOJ that will handle the appeal for Microsoft (if there is one) to the European Court of Justice."

On the Remedy
"Frankly, neither the US remedy nor the European remedy has proven to be very effective. It may be necessary at some point for the Europeans to impose even stronger remedies against Microsoft, such as the break-up originally contemplated by our government."

On the DOJ
"Thus, Barnett’s statement smacks of remorse that the US government did anything at all to stop Microsoft’s exclusionary practices."

On the EC
"The EC’s position, upheld now on appeal, shows the proper concern for practices by dominant firms that eliminate both actual and potential competition which could benefit consumers. The EC has appropriately targeted strategies that would have the effect of deterring investment in innovations that might lead to a reduction of the monopolist’s power and new benefits for consumers."

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