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 http://www.boston.com/dailyglobe2/091/business/Microsoft_justice+.shtml

UPGRADE
Microsoft justice

By Hiawatha Bray, Globe Columnist, 04/01/99

Here's an idea: Let's have one of our bombers drop federal prosecutor
David Boies on Belgrade. Maybe he can pound some sense into this
Milosevic fellow. He certainly did the job on Microsoft Corp., which is
finally
engaged in serious discussions to end its public humiliation at the hands
of the
Justice Department.

It's hard to feel much sympathy for Microsoft, a company that is doing
today
what it should have done 18 months ago. Back then, Gates' crew could
probably
have averted the antitrust suit by providing a version of their Windows
operating
system shorn of its Internet browser. Big deal - nobody would have used it

anyway. Instead Gates and his people chose to fight. Now they find
themselves
squatting in rubble of their own making, wondering what went wrong and
hoping the conquerors will toss them a few chocolate bars.

As in any war, there are folks on the home front who want no mercy for the

vanquished, while others, thinking they've suffered enough, want to offer
generous terms.

Microsoft is no doubt dreaming of getting off with another consent decree,

similar to the one the company signed off on in 1995 to settle an earlier
antitrust
case. This new decree would surely be tougher and more sweeping.

For instance, Microsoft might pledge to sell its operating system software
to all
comers at the same price and allow computer makers to provide a version
stripped of the Internet Explorer browser. Surely it would ban those cozy
deals
with Internet providers that Microsoft used to freeze out the rival
Netscape
Internet browser. The decree might even require Microsoft to provide
companies
with a look at the crown jewels - the actual source code for Windows. That

would mollify competing software makers who say that Microsoft includes
''secret'' features in Windows to make sure that other firms' Windows
programs
don't work as well as Microsoft's.

But if the Justice Department settles for this, cries of ''sellout'' will
fill the air.
Microsoft will certainly try to wriggle through every available loophole,
as it did
with the 1995 decree. Besides, many despise Gates and want to see him
hanging
by the heels. Short of that, they want a corporate equivalent of the death
penalty
- the dismantling of Microsoft.

This radical surgery might involve simply dividing Microsoft's operating
systems
business, its other software activities and its Internet operations into
three
separate firms. An even tougher concept, the ''Baby Bill'' approach, would
set up
several mini-Microsofts. Each would have the right to produce all of
Microsoft's
current products. But because each would compete with the others, none
would
have a monopoly.

It's a measure of Microsoft's skill at making enemies that the Baby Bill
plan has
won the support of Robert Bork, a jurist renowned for his hostility to
antitrust
lawsuits.

A breakup will certainly make life easier for Microsoft's competitors. But
it
seems a rather harsh penalty for a company that has at worst been shown up
as
arrogant and thuggish. To justify such rough handling, one surely ought to
set
out the case that Microsoft has actually harmed the public in some
fashion. And
on that point, the government has had virtually nothing to say.

There are practical problems with a Microsoft breakup as well. If you chop

Microsoft into three firms, at least two of them will still hold
monopolies, in
operating systems and office suites. And what's to stop the operating
system
company from adding, say, word processing and spreadsheets to its product?

As for the Baby Bill plan, say you've got three different companies
selling
Windows. What do you suppose they'll do to win market share from one
another? You guessed it - they'll each create their own unique versions of

Windows, each with different features. Sounds nice until you realize that
soon
one version of Windows will no longer be compatible with the others. And
there
goes Windows' biggest advantage for consumers - the fact that every
Windows
computer works the same way. Kosovo's bad enough without balkanizing the
software market.

Granted, a stiff consent decree and vigorous enforcement lacks the
satisfying
simplicity of putting Gates' head in a trophy case. But it's probably
better for
computer users like you and me.





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