The 17 years since the Microsoft antitrust case taught us that regulation can spur innovation
Seventeen years ago today (June 28), the world’s richest man breathed a sigh of relief.
Bill Gates and Microsoft, the company he dropped out of Harvard to found 25 years prior, were embroiled in a multiyear lawsuit with the US government over antitrust claims. The justice department argued that Windows’s dominance of the computer operating system market let Microsoft unfairly favor its other products, like Internet Explorer.
(If that sounds familiar, similar allegations were made against Google, which was slapped with a $2.7 billion fine from the European Union last year for using its search tool to favor its Google Shopping results over competitors’.)
In June of 2000, a judge in the US district court for the District of Columbia ruled that Microsoft should be broken up into two separate units—one for Microsoft’s operating system and another for its software products. In June of 2001, an appeals court disagreed.
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