Microsoft did almost everything wrong in the course of the Justice Department's antitrust investigation. Today that could serve as a manual of what not to do.
Of the five biggest tech companies in the U.S., Microsoft is the only one that isn't currently in the crosshairs of U.S. antitrust authorities. The software giant already took its turn through the regulatory wringer starting two decades ago, a years-long confrontation that resulted in the finding that the Redmond, Wash.-based company had illegally maintained its monopoly for personal-computer operating-system software.
Though no formal inquiries have yet been opened, the Federal Trade Commission and Justice Department carved up the territory of big tech — Amazon.com Inc., Apple Inc., Alphabet Inc.’s Google and Facebook Inc. — as they prepare to dig in on antitrust issues. The impulse is understandable — monopoly sounds like a dirty word. But U.S. antitrust law doesn't expressly forbid having a monopoly; it outlaws doing certain things to establish, maintain or extend one. That led some legal scholars to argue that Microsoft would have been better served by copping to the Windows monopoly and establishing a legal beachhead against the idea that it did anything illegal to gain it or keep it.
Microsoft claimed it had been assured the tapes would never be shown in court, or the company would have taken greater care with Gates’ appearance and manner. During their playback in court, the judge laughed at several points — not the impression the software giant wanted to make on either Jackson or the public. Jackson told New Yorker reporter Ken Auletta that Gates came off as"arrogant" in the depositions.
The company seemed to think it could get away with baldy stating a technological claim and mocking up something that backed it up, perhaps reasoning that no one would know the difference,Microsoft took on the U.S. government led by a combative Gates and an equally aggressive general counsel, Bill Neukom. Gates, the son of an attorney, was outraged, frustrated and convinced the company was being unfairly targeted.
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