Anti-Trust Laws

Paper Summary:

One of the most visible anti-trust cases in the last decade has been the one of United States vs. Microsoft. This paper examines the question of whether anti-trust laws are applicable to high technology companies or whether they are anachronistic regulations enacted in a bygone era, incapable of being applied rationally to matters of technology businesses and competition. The recent antitrust suit directed at Microsoft is the nexus for this examination.

From the Paper:

"Many critics of the antitrust case against Microsoft feel that the Government has erred a fundamental way by failing to understand how competition works in high technology industries in general and software in particular. (DiLorenzo 2000) High technology, unlike traditional manufacturing, is widely characterized by "economies of scale," in which average costs of production fall sharply as output grows. As an example, it is very expensive to develop new software, costing upwards of millions of dollars and thousands man-hours, but the actually cost of putting another copy on a CD, once development is completed, is close to zero. (DiLorenzo)."

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