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Why Bill Gates Will Win
I've removed the author's name from the communication below because
it was sent to me privately--in response to my post, Why Bill Gates Will
Win. He takes me to task for not relating, in that post of mine, the other
side, i.e., why Bill SHOULD win.
Charles Mueller, Editor
ANTITRUST LAW & ECONOMICS REVIEW
http://webpages.metrolink.net/~cmueller
***********************
Charles,
In your unpacking of the debate, you consistently neglected one point of
view: namely, that it is _not within the purview of government_ to
forcibly affect changes in production for the purpose of maximizing
consumer welfare.
I don't suggest that this argument is legally germane to the Microsoft
case, which is a dispute over the particulars of compliance to an
agreement. But. If we're going to enter into the broader issues of
antitrust action, surely it is relevant that reasonable persons have
objected to the very idea of antitrust law.
The efficiency basis for anti-antitrust, while not the strongest possible
foundation, is nevertheless plausible. The anti-antitrusters declaim: How
can Janet Reno, the blundering anti-Holmes of the Whitewater investigation,
she who has produced nothing but a bit of scorched earth in Texas, decide
what direction the Byzantine software industry needs to go to benefit
consumers? If the government has such omniscience, why doesn't it produce
the software itself? Renosoft -- one shudders to think.
Related to the efficiency basis is the consumer choice basis. How has
Microsoft become a monopoly in the operating-system market (pray don't tell
Apple)? Was it born a colossus, throttling ever dollar from a captive
market? Except for government fiat, _the only road to market dominance is
an enthusiastic market reaction_. It is contradictory to say that
Microsoft is a strategic monopoly (a company with a lock on something _it
created_ that people now define as a _need_) and is, at the same time, the
inept producer of a product hopelessly inferior to what the consumer
demands.
The prosecution of Microsoft not only ignores past consumer choice (the
rush to switch from text-based DOS to GUI-enabled Windows), it also
traduces current consumer choice. How? As someone active in the
information technology industry, I can't tell you how many shops _insist_
on being Microsoft-only. These people choose technologically inferior
Microsoft Outlook over Lotus Notes because _they want to minimize their
risk_ of being stuck with an application no-one services two or three years
hence. To batter Microsoft until it is no longer able to offer consumers
this security, all in the name of consumer choice, is surely to be guilty
of a cruel irony.
The third basis for anti-antitrust is partially prudential politics, but
is primarily moral. Prudentially, it will not do to give government the
power to deligitamize voluntary transactions between free people. The
venders want Microsoft Windows without Internet Explorer, at an affordable
price? It is a legitimate want. In a democracy, if people feel a
physical, non-personal want is legitimate and is not serviced by the
market, the mode of correction is subsidy. It is not coercion. We should
mark it as a grave event when the want of a consumer becomes the
government-enforced duty of a producer.
Shall we, by threat of jail or dispossession, force Bill Gates to make
specific changes to his product? Why not decree that he must unveil a new
operating system every year (in Swahili, of course, to deteriorate his
market position and "help the consumer")? Shall we void, by means of the
not-so-subtle gun ensconced in Reno's law, the agreement of one businessman
or businesswoman to pay another a set price for specific services?
Article XIII, Section 1 of the US Constitution states in no uncertain
terms, "Neither slavery nor involuntary servitude, except as a punishment
for crime whereof the party shall have been duly convicted, shall exist
within the United States." There is no exception to this prohibition on
utilitarian grounds -- our need most emphatically does not create a claim
on the work of others.
Either we are all is possession of this inviolable right, or none of us
are.
The foregoing is the anti-antitrust argument, as competently as I can lay
it out. It is, even it's advocates must admit, based on axioms which are
not self-evident. The moral basis is particularly prone. If one believes
that a citizen who has revolutionized the way we work and live is thereby
bound by our need for his gifts, that he is thereby deprived of
self-sovereignty over his work; if men with guns are just in traducing the
agreements of freely trading citizens, then there is no basis to believe
that antitrust laws are immoral. If the acclaim and trust of consumers are
of little note, then there is no reason to believe that antitrust laws are
patronizingly paternal. If a woman who has never written a line of code
can decide what the software industry needs, there is no reason to believe
that antitrust laws promote inefficiency.
Hence, I readily admit that we are not compelled by logical certainty to
the anti-antitrust position. But perhaps, Charles, you would agree that
these positions deserve a passing note in your expositions of American
industrial policy.
Just a passing thought...