Feeds

DoJ prepares to demand break-up of Microsoft

Thoughts at Justice seem to be turning to the nuclear option

  • alert
  • submit to reddit

The essential guide to IT transformation

MS on Trial Against expectations, the DoJ has been asking investment bankers how Microsoft could be split up. It had been thought that only the states, co-plaintiffs in the case, wanted this solution. However, it would be wrong to assume that just because the DoJ has made some enquiries, that break-up is the favoured course of action. In a complex case, it is normal practice to examine all possible remedies in some depth. Gina Talamona, the DoJ spokeswoman, confirmed that "experts" had been approached, but that nobody had been retained. Talamona confirmed that all options remained open, and that there was no focus on a particular remedy. The investment banks concerned not only did not want to be identified, but refused to help because their interests are completely opposed to harming Microsoft, largely because they almost certainly have positions that would be improved by Microsoft's continuation. In the longer term, break-up would probably cause even greater growth, but US investment bankers work from year-to-year, if not hour-to-hour, rather than having a five-year perspective, which largely accounts for the gold rush atmosphere in US markets. The other downside to even considering involving investment bankers is that they are particularly poorly informed about the industry, as can be seen from Microsoft's recent financial analysts meeting where the presentations were at a superficial level, befitting their lack of understanding of industry issues, and even worse, their serious lack of objectivity. A report in USA Today suggested that the DoJ was interested in where the logical break points were in Microsoft, and to know what the market reaction would be. If true, and it sounds doubtful, it is undesirable that the DoJ should be concerned with market reaction. The case, after all, is about the harm to consumers as a result of Microsoft's actions, and how the industry has been distorted to focus on areas where Microsoft is not dominant. For what it's worth, Jim Cullinan, who was spoking for Microsoft yesterday, said that Microsoft was not focussed on remedies, and that "we believe the facts will show we competed fairly". Verb sap. ® Complete Register Trial coverage

5 things you didn’t know about cloud backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.