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Does a breakup make sense ?

Everyone knew that the government had mounted a strong case in U.S. vs. Microsoft. But nobody expect a complete rout.

Yet, when U.S. District Judge Thomas P. Jackson released his finding of facts on Nov. 5, he handed state and federal prosecutors an unambiguous triumph. Declaring that Microsoft routinely used its monopoly power to crush competitors, he portrayed the software giant as nothing less than a social menace.

Jackson's fact-findings were so critical of the company that they've raised the stakes in this battle: Suddenly, the breakup of Microsoft is a real possibility. "If you had asked me how likely a breakup of Microsoft was six months ago, I would have said 10%," says Robert E. Litan, an antitrust expert at the Brookings Institution in Washington, D.C. "Now I say it's 50%."

The last time the government broke up a major company was in1982


Horizontal breakup : Breaking Microsoft into three companies---one with operating systems, another with applications software, and a third with the Microsoft Internet businesses---would stop Microsoft from using its Window monopoly as leverage in the other two markets. But it falls short of the key goal of any remedy: To create competition in the market for operating systems.

Open source licensing : Microsoft would be forced to publish the source code to Windows, though other companies could not use it to create clones. Software companies that create applications that run on Windows could put them on an equal footing with Microsoft's own applications writers. A problem: Pirates might make illegal copies of Windows.

In my opinion, horizontal breakup is the best solution. The government should choose this solution. Breaking Microsoft into three companies. Operating systems, appli

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Approximate Word count = 597
Approximate Pages = 2 (250 words per page double spaced)


  

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