Feeds

DoJ prepares to demand break-up of Microsoft

Thoughts at Justice seem to be turning to the nuclear option

  • alert
  • submit to reddit

Build a business case: developing custom apps

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

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.