Introduction: Recently, Intel, Microsoft and other IT giants once again suffered attacks on anti-trust case, the wave of a resurgence of anti-monopoly situation."Economist" magazine yesterday, the author analyzes the industry, the reasons for the endless anti-trust cases.
Wave of anti-monopoly comeback
Ten years ago, when Microsoft suffered antitrust, Bill Gates made it clear that: "anti-monopoly will eventually be forgotten by the people." And other computer industry giants face the same problems, its executives have also expressed a similarpoint of view, but it means a little vague.Today, the long-dormant antitrust finally re-ignite the flame, the regulatory body of the IT industry bigwigs have taken another round of action.
Next week, the EU will be protracted determinations Intel monopoly case, Intel will face 10 million euros (1.3 billion) in heavy fines.Early June, Microsoft will get the dock in Brussels, facing illegal web browser bundled with Windows operating system charges, since the 90s from the last century, the allegation has been plagued by Microsoft.50 years from the last century, since the major targets of the anti-monopoly - IBM, is also facing new charges.Even the Internet giant Google was not spared, is to accept the strict anti-monopoly investigation.April 29 this year, the U.S. Justice Department began investigating the company, to determine and publishers Google Book Search service in the settlement reached is a violation of antitrust laws.
Antitrust case of the three major causes of frequent
In fact, the whole IT industry is the high incidence of antitrust area, and the problem will remain.There are three reasons: First, the large technology companies in their respective markets is often dominant.Executives of these companies, which are often interpreted as a result of huge R & D investment.But in the market, usually the winner takes all.As the network's powerful mainframe with the operating system to benefit a lot.When the computer applications rises, attracting users is growing, but also attract more programmers to develop application software.Because of the increased capital requirements, building chip plant to become large companies patent.Meanwhile, search and online advertising market has experienced a similar situation: the higher the company's market share, the ability to attract advertisers, the stronger, as incomes increase, more companies are able to build large data centers.Thus, in the computer industry, it is difficult to break the monopoly of the dark horse emerged.
However, breaking the ice is not entirely impossible.In the computer industry, technology upgrade may impact on the industry leader.For example, 80s of last century, the mainframe was driven out of the minicomputer market.Prepared and cultured large technology companies have aggressive corporate culture, naturally aroused the concern of antitrust authorities.Former Intel CEO Andy Grove (Andy Grove) once wrote a book entitled "Only the paranoid survive."
In order to prevent abuse of the sense of competition, Intel has been its employees obedience training, but not enough to prevent companies across the red line, at least in the EU think so.EU charges Intel way through the discount, limited computer manufacturers and retailers, production and sales with its only competitor - AMD chips.It was also claimed that subsidies to retailers by way of Intel, AMD urged to give up its products.
In the late 90s of last century, for competitive considerations, Microsoft for its Web browser - Internet Explorer to Windows bundled with the strategy.The EU is currently investigating the case based more on the future rather than settle scores, the competition aims to protect the future.As more and more through the network computing (cloud computing), the browser replacing the operating system has gradually become a major computing platform.
Third, the anti-trust issue has always been difficult for the computer industry, the reason is that each company will be more and more frequently as a competitive weapon against monopoly, like patent litigation, the standard competition for the same.For example, AMD's market share as Intel continue to be robbed, the company launched operations in the world, called for national regulatory authorities verify the behavior of its competitors, including the EU, South Korea, Japan and other countries have made restrictions on Intel.In the United States, AMD filed the antitrust case will be heard next February, while the U.S. Federal Trade Commission in June last year, Intel also launched an antitrust investigation.
Similarly, IBM antitrust investigation will be issued as a "platform wars" of the extension, hoping to push back Microsoft's attack.IBM-sponsored by the European Committee for Interoperable Systems (ECIS), whose members include Microsoft's major competitors.Microsoft's browser, the Commission is the main promoter of the case, one of its members - Norwegian browser company Opera has launched this action.
And Microsoft in the antitrust movement has not strive.The company recently invested in a small computer manufacturing company - T3.This year in January, T3 allegations to the European Union, accusing IBM refused to provide mainframe customers T3 software to squeeze the company.Microsoft also filed with the U.S. regulators on antitrust charges Google forced to give up Google and Yahoo, a cooperative advertising network.
Repercussions wave of anti-monopoly
Of course, this does not mean that all of the antitrust case would be meaningless, just a scuffle between competitors.But regulators must make a "fair decision" and to consider the radical behavior of industry giants will hurt consumers, not just competitors.A legal profession that poor prescription may be counterproductive.
Microsoft's lawsuit is currently the EU seems to be the most powerful.September 2007, the European Court of First Instance ruled that Microsoft Windows system, the practice of bundling Media Player hinder competition.Although the open source-style browser - the rise of Firefox, the browser market in recent years, increasingly competitive, but the reason is still applicable to the browser.EU may require Microsoft Windows system, built-in market in a variety of popular browsers, run the first choice for users.
The Intel case is more complex.Discount is the practice in many industries, so this case the key is whether Intel's discounts with the above conditions, to maintain its market position.Determine whether the loss is not yet formed: chip prices have been falling, technological innovation has never been slow in recent months, AMD's market share on the rise.And the corresponding sanctions but will hinder market competition.For example, limit discounts, could make Intel's only rival AMD set a minimum price.
IBM in antitrust in the more fearless.Because of many different computer systems, whether mainframe, an independent market is still in dispute, whether the conduct which is IBM the necessary conditions hinder competition.The rest of Google, from the history of other companies facing antitrust investigations will also be far off.But the company is also aware of this, so be careful.From the industry point of view, antitrust is not the wind seems subside in the near future.