Declaration Criticizing Government's Proposed Remedies in Microsoft Case

Abstract

This is an examination of the government's proposed remedy in the microsoft case. It was performed for the Association of Competitive Technology.

Although a breakup along business lines might be thought to be relatively low cost as breakups go, government imposed restrictions on trade, and its capricious division of products are likley to reduce competition in several markets and lower the quality of products from the two microsoft components. The cliamed benefits would be inconsistent with the government's theory in the case.

JEL Classification: L4, L5, K21, O3