Now, Your Journey to the Dark Side is Complete
When the U.S. government initially brought an antitrust case against Microsoft in 1998 at the behest of competitors Netscape and Sun, beltway types marvelled that Microsoft did not even have a lobbyist in DC. Somehow this technology company had become a huge corporation without playing the usual political game. Well, Microsoft has matured. (I've been trying to figure out the odd usage of "matured" by statist political pundits. Near as I can tell, it means "become thoroughly corrupted by politics".)
Microsoft recently lost out in a bidding war to buy online advertising company DoubleClick. Google won (for a hefty $3.1 billion) and Microsoft has now learned what to do when you don't get your way in the voluntary marketplace... Microsoft Urges Antitrust Officials to Scuttle DoubleClick Deal:
In an interview today, Bradford L. Smith, Microsoft’s general counsel, said that the purchase of DoubleClick by Google would "combine the two largest distributors of online advertising" and thus "substantially reduce competition in the advertising market on the Web."
Comments (18)
Bill Milligan
Microsoft built the vast majority of its business by aggressive acquisition. DOS, Internet Explorer, and Excel are prime examples of products which combine distribution of similar content to either other MS products, or even with each other.
They defended this practice by invoking "Freedom of Innovation".
I hereby nominate Microsoft for first prize in the competition for Biggest "Innovator" in the Field of Situational Irony and/or Hypocrisy.
Any secondeers?
Published: April 16, 2007 1:21 AM
Niels van der Linden
Liberty: the freedom to bribe.
Published: April 16, 2007 7:38 AM
Bill's Friend
Bill, I'll let you go ahead and work on that first paragraph until it resembles coherent English. The rest of the class will wait until you have taken a second crack at it.
Published: April 16, 2007 9:35 AM
Charles Hanes
Microsoft (from its founding until recently) showed us what capitialism in a free economy can do, when unfettered by regulations and government oversight. In short -- everyone becomes richer as a result.
Microsoft created more wealth for more people in a shorter time than the world has ever seen. And this is not just for the shareholders of Microsoft -- think about all the individuals, small businesses, etc. that have benefitted from an inexpensive software platform on which a multitude of products could be built. This was just a dream in the 1970's; Microsoft made it a reality.
Today, if you are someone that wants to create a software product, from Bible software to CAD, you don't have to re-invent the whole system. This reduces the cost of your effort by many times, making applications economically feasible that previously would not have been.
Published: April 16, 2007 9:49 AM
Bradford Young
We can debate the technical virtuosity of Microsoft products and the company's history of true innovation vs. savvy/pernicious appropriation, but the key point is that the market was allowed to decide the value received.
I think it will be interesting to watch how Microsoft fares now that it does not permit multiple copies of the software. Buyers were able to find the right economic price for Microsoft's frequently low-quality software because they were able to make enough illegal copies to find economic equilibrium. Now that the software is much harder to copy, alternatives like Open Office and Linux operating system, which involve no license fees but do involve switching costs, may eat into Microsoft's revenues. Apple may also take share.
Published: April 16, 2007 10:22 AM
programmer
Looking at Microsoft's performance in the 1980s and 1990s, it's easy to imagine that it would have been instrumental in giving low-cost computing to the masses even without IBM's help (MS kind of rode to success in IBM's wake on the basis of a bad deal IBM made with MS at the dawn of the PC age).
BUT, even if you factor in the problems MS must now have dealing with all its legacy software and with dealing with a zillion hardware manufacturers (Apple doesn't have this problem as much, especially--in the case of legacy software--having flipped its OS in the late 1990S), it's difficult to imagine how MS as it currently operates could ever have enjoyed that kind of success outside the protective shadow of IBM's former dominance. Its products are shoddy and unimaginative, its crappy OS is getting nibbled at on the desktop by better-designed UNIX-based systems (MAC's OS X and Linux), and MS is having its lunch eaten in the server market by Linux. There is clearly little if any direction or vision. Simply comparing the Google homepage with the MS Live Search homepage kind of indicates that lack of imagination at work.
For MS's sake, I hope they have good lobbyists. For the future of software's sake, I hope they don't!
Published: April 16, 2007 10:31 AM
Bill Ott
It is like the time when your child tells their first lie. You realize it is a LEARNED skill that they can then use for the rest of their lives.
Same with buying influence in government. Microsoft did not have a single lobbyist. Now it may very well have the most if Walmart doesn't beat them.
This is what happens with the founders relinquish controll of the company. Without that innovative edge the founders provide, the companies try to leverage the cash into political favors. This is never good for stock holders.
Published: April 16, 2007 12:06 PM
programmer
> This is what happens with the founders relinquish controll of the company.
But Microsoft is still run by a founder (Bill Gates) and a quasi-founder (Steve Ballmer--first white-collar employee, longest-serving employee, owner of a sizebale chunk of the company and a college buddy of Gates). There is no one at MS who has more claim to being a founder than either of these two guys, and there hasn't been for a very long time.
So your theory, even if true, isn't applicable here.
Published: April 16, 2007 12:32 PM
Person
But ... but ... but Microsoft made all its money through IP! *cognitive dissonance*
Published: April 16, 2007 1:39 PM
harry
My first thought about Microsoft is something that probably shouldn't be posted here but really, Microsoft is talking about antitrust suits when they team up with phoenix to set their BIOS so it will only run Vista and then shutdown XP next year, who should be put under the antitrust law and keel hauled.
Published: April 16, 2007 2:00 PM
tMoC
I agree, Person. Discussing the recent particulars of Microsoft's misdeeds strikes me as a little strange given its history.
Published: April 16, 2007 4:28 PM
JIMB
The irony is so many libertarians don't see this as a threat to the theory of the 'unhampered marketplace'. Corps are only interested in justice because they'd get hammered by the government, and government is only interested if they'll get hammered by the people ...
I believe strongly in libertarian ethics and theory; but it does bother me that so much of libertarianism simply assumes that the 'natural state' is the 'unhampered market' ... it appears the facts are the reverse. It takes a force of will, of moral authority, and of distributed power to have anything resembling a peaceful market.
Published: April 16, 2007 5:47 PM
Kevin B.
JIMB,
Unhampered marketplace = hampered marketplace - government.
Your scenario (hampered marketplace):
"Corps are only interested in justice because they'd get hammered by the government, and government is only interested if they'll get hammered by the people."
Therefore, the unhampered marketplace, cutting out the middleman, would look something like this:
Corps are only interested in justice because they get hammered by the people.
Published: April 16, 2007 6:18 PM
JIMB
Kevin: Wrong. unhampered marketplace = marketplace - violence. Just how will violence disappear? Think corps might engage in violence once the monopoly of government disappears? Come on ... this is (in my view) THE problem with libertarian theories that magically eliminate the core problem. The core problem is not government, it is man's propensity for violence which is frequently expressed in government.
Published: April 17, 2007 10:33 AM
TLWP Sam
That's what I've been asking all along JIMB!
Here's of course the standard ace out their sleeves:
http://world.std.com/~mhuben/plofker.html
Published: April 17, 2007 7:35 PM
Kevin B.
JIMB,
I would further edit it to say
unhampered marketplace = trade - coercion
but the word must include fraud, etc., etc.
Your direction was valid, though. My question is, is abuse of power less likely in a monopoly of force or competition?
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