CHICAGO, June 29 /PRNewswire/ -- Dr. Steven J. Davis, professor of
Economics at the University of Chicago, issued the following comment regarding
the decision by the Court of Appeals for the District of Columbia circuit in
the landmark US v. Microsoft case:
"In its decision, the Court of Appeals sharply narrowed the antitrust case
against Microsoft and threw out the remedy ordered by a lower court. The
decision virtually eliminates any threat of a Microsoft break up.
"The judges reversed a lower court's finding that Microsoft illegally
sought to monopolize the market for Internet browsing software. They also
remanded for retrial the claim that Microsoft had unlawfully tied browsing
software to its Windows operating system. In doing so, they set forth a "rule
of reason" standard that is highly favorable to Microsoft, and that will
preserve the right of Microsoft and other software firms to continue adding
new and innovative features to software products.
"The judges affirmed the lower court determination that Microsoft engaged
in anti-competitive actions to maintain its monopoly position in the operating
system market. While a victory for the government, these anti-competitive
actions lend themselves to a narrowly crafted conduct remedy rather than a
sweeping structural remedy."
SOURCE Dr. Steven J. Davis, professor of Economics at the University of
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CONTACT: Kendall Bentz, 202-380-0617, for Dr. Steven J. Davis, professor of Economics at the University of Chicago
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