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The important question to me is will this lawsuit do more good than harm. Having the government establish when prices are too high (price fixing, Apple in this
by te_platt 15y ago
The important question to me is will this lawsuit do more good than harm. Having the government establish when prices are too high (price fixing, Apple in this case) or too low (unfair competition, Google maps in France) is a risky situation.
Consider this quote from Milton Friedman talking about the antitrust suit against Microsoft in the 90s:
"Under the circumstances, given that we do have antitrust laws, is it really in the self-interest of Silicon Valley to set the government on Microsoft? Your industry, the computer industry, moves so much more rapidly than the legal process, that by the time this suit is over, who knows what the shape of the industry will be. Never mind the fact that the human energy and the money that will be spent in hiring my fellow economists, as well as in other ways, would be much more productively employed in improving your products. It’s a waste! But beyond that, you will rue the day when you called in the government. From now on the computer industry, which has been very fortunate in that it has been relatively free of government intrusion, will experience a continuous increase in government regulation. Antitrust very quickly becomes regulation."
Full article at: http://www.cato.org/pubs/policy_report/v21n2/friedman.html http://www.cato.org/pubs/policy_report/v21n2/friedman.html
- jusben1369 15y agoI'm not sure of your point here. Your opening sentence appears to question antitrust laws? Yet your Friedman quote seems to support antitrust laws and just argue that the Valley really shouldn't get too spun up about MSFT because by the time a conclusion is reached by the processes set in place it will likely be moot. This was a pretty cut and dried case that moved rapidly (2 years) against a group of executives who were colluding to raise prices to thwart a competitor?
- te_platt 15y agoYes, I do question the value of antitrust laws. The Friedman quote was meant to show that given the existence of antitrust laws, it is still not in your long term interest to seek to have them enforced in your industry. Arguing that the government should have power to punish your competition is also an invitation for the government to regulate you.