[PDF] - The Ne w Ec onom y Doc t r i ne : W ha t The Cour t PDF Document

SLIDE 1

1

St e phe n M . M a ur e r Gol dm a n Sc hool

f

Publ i c Pol i c y I T a nd Publ i c Pol i c y – Nov. 4, 2004

The Ne w Ec

nom y

2

Hi s t

r

y The M i c r

s
f

t Ca s e Doc t r i ne : W ha t The Cour t Sa i d Re a di ng t he Le ga l Te a Le a ve s Pol i cy Conc l us i

n:

Ta ki ng St

c

k

3

1890: The She r m a n Ac t 1911: St andar d Oi l 1956: AT&T I

Ne t wor k Ef f e c t s I nnovat i

n

I s s ue s Re l i e f

4

1969

1980:

I BM

I nnova t i

n

Re l i e f

1974

1982:

AT&T I I

5

1994

1995:

M i c r

s
f

t I

Li c e ns i ng & De vel

pe

r Agr e em e nt s

1998

2002:

M i c r

s
f

t I I

Expl

r

e r & J ava Tr i a l , Appe a l , Rel i e f Pha s e

6

2004

?

: M i c r

s
f

t I I I ( E. C. )

Se r ver M a r ke t M e di a Pl ayer

SLIDE 2

2

7

Subj e c t M a t t e r ? No. De f e nda nt W i ns Ye s . Li a bi l i t y No. De f e nda nt W i ns Ye s . De f e ns e s & J us t i f i c a t i

ns

No. De f e nda nt W i ns Ye s . Re l i ef No. De f e nda nt W i ns Pl a i nt i f f W i ns Ye s !

8

Se c t i

n

1

“ Eve r y cont r a c t , c

m bi

na t i

n

i n t he f

r

m

f

t r us t

r
t

he r wi s e ,

r

c

ns

pi r a cy, i n r e s t r a i nt

f

t r a de

r

c

m m e

r c e a m ong t he s e ve r a l St a t e s ,

r

wi t h f

r

e i gn na t i

ns

, i s de c l a r e d t

be

i l l e ga l . ”

15 USC §1.

La w

Subj e c t M a t t e r ? No. Ye s .

9

Se c t i

n

1 Re qui r e s M ul t i pl e Pa r t i e s W ha t Doe s I t M e a n? La w

Subj e c t M a t t e r ? No. Ye s .

10

Se c t i

n

2

“ Eve r y pe r s

n

who s ha l l m onopol i z e ,

r

a t t e m pt t

m onopol

i z e ,

r

c

m bi

ne

r

cons pi r e wi t h a ny

t

he r pe r s

n
r

pe r s

ns

, t

m onopol

i z e a ny pa r t

f

t he t r a de

r

c

m m e

r c e a m ong t he s e ve r a l St a t e s ,

r

wi t h f

r

e i gn na t i

ns

, s ha l l be de e m e d gui l t y

f

a f e l

ny

. . .

La w

Subj e c t M a t t e r ? No. Ye s .

11

Se c t i

n

2 Doe s NotRe qui r e M ul t i pl e Pa r t i e s W ha t Doe s I t M e a n? La w

Subj e c t M a t t e r ? No. Ye s .

12

An Ec

nom i

c St a t ut e ?

“ I f we wi l l not e ndur e a ki ng a s a pol i t i c a l powe r we s houl d not e ndur e a ki ng

ve

r pr

duc

t i

n,

t r a ns por t a t i

n,

and s al e

f

a ny

f

t he ne ce s s a r i e s

f

l i f e . ”

J
hn

She r m a n

La w

Subj e c t M a t t e r ? No. Ye s .

SLIDE 3

3

13

An Ec

nom i

c St a t ut e ?

“ Powe r t ha t cont r

l

s t he e conom y s houl d be i n t he ha nds

f

e l e c t e d r e pr e s e nt a t i ve s

f

t he pe

pl

e , not i n t he ha nds

f

a n i ndus t r i al

l

i ga r c hy. ”

W i

l l i a m O. Dougl a s

La w

Subj e c t M a t t e r ? Ye s . No.

14

An Ec

nom i

c St a t ut e ?

“ M a xi m i z i ng Cons um e r W e l f a r e ”

A De t e r m i na t e St a nda r d?

“ Fos t e r i ng Com pe t i t i

n”

Ea r l y Theor i e s – M ode r n Appr

a

c h

La w

Subj e c t M a t t e r ? Ye s . No.

15

M . C. De m a nd

La w

Subj e c t M a t t e r ? Ye s .

DW L

No.

16

An Ec

nom i

c St a t ut e ?

“ Fos t e r i ng Com pe t i t i

n”

A M i c r

e

conom i c Conc e pt Com pe t i t i

n

v s .I nnova t i

n

La w

Subj e c t M a t t e r ? Ye s . No.

17

Sc hum pe t e r i a n Com pe t i t i

n

“ W e de c i de t hi s c a s e a ga i ns t a ba c kdr

p
f

s i gni f i c a nt de ba t e a m ong a c a de m i c s a nd pr a c t i t i

ne

r s

ve

r t he e xt e nt t

whi

c h ‘

l

d e c

nom y’

§2 m onopol i z a t i

n

doc t r i ne s s houl d a ppl y t

f

i r m s c

m pe

t i ng i n dyna m i c t e c hnol

gi

c a l m a r ke t s c ha r a c t e r i z e d by ne t wor k e f f e c t s . ” [ 11]

Te a Le a ve s

Subj e c t M a t t e r ? Ye s . No.

18

Ne t wor k Ext e r na l i t i e s The Ent r e nc hm e nt I s s ue The Ext e r na l i t i e s I s s ue

Subj e c t M a t t e r ? Ye s .

Te a Le a ve s

No.

SLIDE 4

4

19

The Ent r e nc hm e nt I s s ue

“ I nde e d, t he r e i s s

m e

s ugges t i

n

t ha t t he e c

nom i

c c

ns

e que nc e s

f

ne t wor k e f f e c t s a nd t e c hnol

gi

c a l dynam i s m a c t t

f

f s e t

ne

a not he r , t he r e by m aki ng i t di f f i c ul t t

f
r

m ul a t e c a t e gor i c a l a nt i t r us t r ul e s a bs e nt a pa r t i c ul a r i z e d a na l ys i s

f

a gi ve n m a r ke t ”

Subj e c t M a t t e r ? Ye s .

Te a Le a ve s

No.

20

The Ent r e nc hm e nt I s s ue

Bus i ne s s a s Us ua l ? Gui da nc e v s .Ca s e

by-

c a s e Rul e s .

Subj e c t M a t t e r ? Ye s .

Te a Le a ve s

No.

21

The Ext e r na l i t i e s I s s ue Doe s t he Cour t “ Ge t I t ” ? ? ? Pol i cy

Subj e c t M a t t e r ? Ye s . No.

22

Copyr i ght vs . Ant i t r us t

( I nnova t i

n

vs . Com pet i t i

n)

M i c r

s
f

t ’ s a r gum e nt t ha t c

pyr

i ght a l l

ws

i t t

pr

e ve nt pe

pl

e f r

m

c ha ngi ng t he de s kt

p

“ . . . i s no m or e c

r

r e c t t ha n t he pr

pos

i t i

n

t ha t

ne

’ s pe r s

na

l pr

pe

r t y, s uc h a s a ba s e ba l l ba t , c a nnot gi ve r i s e t

t
r

t l i a bi l i t y”

[ p. 33]

La w

Subj e c t M a t t e r ? Ye s . No.

23

The

r

i e s

M onopol i z i ng PC M a r ke t [ §2] At t e m pt e d M onopol y

f

Br

ws

e r s [ §2] Tyi ng W i ndows t

Expl
r

e r [ §1]

Li a bi l i t y Ye s .

La w

No.

24

Se c t i

n

1 Rul e

f

Re a s

n

De f i ni ng The M a r ke t Ba l a nc i ng Pos i t i ve a nd Nega t i ve Ef f e c t s

Pe r Se Rul e s

Pr i c e Fi xi ng Ge

gr

a phi c Di vi s i

ns

Boycot t s e t c . , e t c . …

Li a bi l i t y Ye s .

La w

No.

SLIDE 5

5

25

Tyi ng El e m e nt s :

( 1)Two s e pa r a t e pr

duc

t s ( 2)M a r ke t powe r i n t he t yi ng pr

duc

t ( 3)Cons um e r s ha ve no c hoi c e i n t he t i e ( 4)Subs t a nt i a l vol um e

f

c

m m e

r c e i s a f f e c t e d.

La w

Li a bi l i t y No. Ye s .

Se c t i

n

1

26

Tyi ng

Tr a di t i

na

l r a t i

na

l e : Le ve r a gi ng M onopol y An I nc

he

r e nt Doc t r i ne ?

La w Ec

nom i

c s

La w

Li a bi l i t y No. Ye s .

Se c t i

n

1

27

Tyi ng

M i c r

s
f

t I I Rat i

nal

e : Cons um e r c hoi c e .

Ef

f i c i e nc y

f

i nt e gr a t i

n;

“ Nove l , pur por t e d e f f i c i e nc i e s ”[

p. 79]

.

Li a bi l i t y No. Ye s .

La w Se c t i

n

1

28

Li a bi l i t y No. Ye s .

La w Se c t i

n

2 M onopol i z a t i

n
f

t he PC M a r ke t El e m e nt s

1) M a r ke t Powe r + 2) Ant i c

m pe

t i t i ve Conduc t

29

Li a bi l i t y No. Ye s .

La w Se c t i

n

2 M onopol i z a t i

n:

M a r ke t Powe r

M a r ke t Powe r = M a r ke t Sha r e+ Ba r r i e r s t

Ent

r y

30

Li a bi l i t y No. Ye s .

La w Se c t i

n

2 M onopol i z a t i

n:

M a r ke t Powe r De f i ni ng M a r ke t Sha r e

W ha t i s t he M ar ke t ? Shoul d M i ddl e war e Count ?

De f i ni ng Ba r r i e r s t

Ent

r y

The Appl i c a t i

ns

Ba r r i e r

SLIDE 6

6

31

Li a bi l i t y No. Ye s .

La w Se c t i

n

2 M onopol i z a t i

n

Ant i c

m pe

t i t i ve Conduc t :

1. OEM s

a nd Cont r

l
f

t he De s kt

p

W ha t ’ s t he Al t e r na t i ve ?

32

Li a bi l i t y No. Ye s .

La w Se c t i

n

2 M onopol i z a t i

n

Ant i c

m pe

t i t i ve Conduc t :

2. I

nt e gr a t i ng I E a nd W i ndows

Ta ki ng I E Of f Add/ Rem ove Li s t Com m i ngl i ng Fi l e s Ove r r i di ng Us e r Choi c e

f

Br

ws

er

33

Li a bi l i t y No. Ye s .

La w Se c t i

n

2 M onopol i z a t i

n

Ant i c

m pe

t i t i ve Conduc t : 3. Agr e e m e nt s W i t h I nt e r ne t Ac c e s s Pr

vi

de r s

Li c e ns e Re s t r i ct i

ns

Fr e e Tool Ki t s Ar e OK

34

Li a bi l i t y No. Ye s .

La w Se c t i

n

2 M onopol i z a t i

n

Ant i c

m pe

t i t i ve Conduc t :

4. Agr

e e m e nt s W i t h I nde pe nde nt Sof t wa r e Pr

vi

de r s

Br

ws

e r De f a ul t s

35

Li a bi l i t y No. Ye s .

La w Se c t i

n

2 M onopol i z a t i

n

Ant i c

m pe

t i t i ve Conduc t :

5. Thr

e a t e ni ng Appl e

Cour t s Unde r s t and Thr ea t s . . .

36

Li a bi l i t y No. Ye s .

La w Se c t i

n

2 M onopol i z a t i

n

Ant i c

m pe

t i t i ve Conduc t :

6. J

a va

I nc

m pa

t i bl e J ava i s OK! De c e pt i

n

& Thr ea t s t

I

nt e l W ha t ’ s t he Al t er na t i ve ?

SLIDE 7

7

37

Li a bi l i t y No. Ye s .

La w Se c t i

n

2/ At t e m pt e d M onopol i z a t i

n

( Br

ws

e r s )

( 1) Ant i c

m pe

t i t i ve c

nduc

t + ( 2) Spe c i f i c i nt e nt t

m onopol

i z e + ( 3) Da nge r

us

pr

ba

bi l i t y

f

s uc c e s s .

38

Li a bi l i t y No. Ye s .

La w Se c t i

n

2 At t e m pt e d M onopol i z a t i

n

Da nge r

us

Pr

ba

bi l i t y

f

Suc c e s s

W ha

t ba r r i e r s t

e

nt r y?

39

Se c t i

n

1/ Tyi ng:

“ Enm e s h[ i ng] t he c

ur

t s i n pr

duc

t de s i gn de c i s i

ns

. ” [

p. 80]

.

De f e ns e s & J us t i f i c a t i

ns

No. Ye s .

La w

40

Se c t i

n

2/ M onopol i z a t i

n:

Copyr i ght De f e ns e :

“ Dr a s t i c Va r i a t i

n”

“ St a bl e a nd Cons i s t e nt Pl a t f

r

m . ” No Pr i nc i pl e d Di s t i nc t i

n

. . .

De f e ns e s & J us t i f i c a t i

ns

No. Ye s .

La w

41

Se c t i

n

2/ M onopol i z a t i

n:

Bundl i ng

No J us t i f i c a t i

n

f

r

Com m i ngl i ng

r

Ta ki ng I E Of f Add/ Rem ove Li s t “ Va l i d Te c hni c al Re a s

ns

”f

r

Ove r r i di ng Br

ws

e r Choi c e

De f e ns e s & J us t i f i c a t i

ns

No. Ye s .

La w

42

Se c t i

n

2/ M onopol i z a t i

n:

Agr e e m e nt s W i t h I APs & I SVs

“ No J us t i f i c a t i

n”

De f e ns e s & J us t i f i c a t i

ns

No. Ye s .

La w

SLIDE 8

8

43

I s Ant i t r us t Fut i l e ?

Abbot t Li ps ky Ce l l Phone s

Re l i ef Ye s .

La w

No.

44

Re l i ef Ye s .

La w

Any girl can be glamorous. All you have to do is stand still and look stupid.”

Hedy Lamarr (1913-2000)

No.

45

Ana l

g

Di gi t a l Fr e que ncy Hoppi ng AM PS GSM CDM A

Re l i ef Ye s .

La w

No.

46

De s i gni ng Re l i e f I nj unc t i

ns

Cr i m i nal vs . Ci vi l Cons t i t ut i

nal

Re qui r em e nt s

Dam a ge s

Re l i ef Ye s .

La w

No.

47

St r uc t ur a l Re l i e f

1. I s

l

at i ng t he M onopol y ATT I BM M i c r

s
f

t 2. I nnovat i

n

Ef f e c t s ? 3. Com pl em e nt a r y M onopol i es

Re l i ef No. Ye s .

La w

48

Be l l O pe r at i ng Com pani e s AT& T Long Di s t anc e W e s t e r n El e c t r i c & Be l l Labs

AT& T

Re l i ef Ye s .

La w

No.

SLIDE 9

9

49

AT& T I

Re l i ef No. Ye s .

La w

50

Be l l O pe r at i ng Com pani e s AT& T Long Di s t anc e W e s t e r n El e c t r i c & Be l l Labs

AT& T I I

Re l i ef No. Ye s .

La w

51

CPU

Sof t wa r e Pr i nt e r s Ta pe Dr i ve s Se r vi ce Di s k Dr i ve s Pe r i phe r al s

I BM

Re l i ef No. Ye s .

La w

52

M i c r

s
f

t

Re l i ef No. Ye s .

La w

53

Re l i ef No. Ye s .

Pol i cy Or di na r y Ca s e : The Shoe M onopol i s t

54

Re l i ef No. Ye s .

Pol i cy Com pl e m e nt a r y Goods : The Le f t Shoe M onopol i s t

SLIDE 10

10

55

Re l i ef No. Ye s .

Pol i cy Com pl e m e nt a r y Goods : The Le f t Shoe M onopol i s t

56

De s i gni ng Re l i e f Di s t r i c t Cour t ( J udge J a c ks

n)

: Di d M i c r

s
f

t W i n ?

Re l i ef Ye s .

La w

No.

57

De s i gni ng Re l i e f Di s t r i c t Cour t ( Kot e l l y- Kol a r ) Pr

por

t i

na

t e Re l i e f The M i ddl e wa r e Fi ght The Cl

ne

s I s s ue ?

Re l i ef Ye s .

La w

No.

58

De s i gni ng Re l i e f

The EC Fi ne s Com pul s

r

y Li c e ns i ng Ope ni ng The I nt e r f a c e Unbundl i ng M e di a Pl a ye r

Re l i ef Ye s .

La w

No.

59

Re l i ef No. Ye s .

Pol i cy

Cr i m i na l Sa nc t i

ns

M ode r n Ta c t i c s Abbot Li ps ky Ge ne r a l El e c t r i c & The “ Pha s e s

f

t he M oon”

60

I nnova t i

n

vs . Com pe t i t i

n

Ne t wor k Ef f e c t s

Sc hum pe t e r i a nCom pet i t i

n

Va l ui ng Ne t wor k Ext e r nal i t i e s I nt e r f a c e s

M a r ke t I m pe r f e c t i

ns

–The De s kt

p

Te c hni c a l & Bus i ne s s J udgm e nt s Appr

pr