In Silicon Valley, fast firms and slow regulators

“Digital distribution has had an enormous impact across many sectors. We are particularly interested in areas where we have identified bottlenecks by incumbents that can harm innovative new developments and keep new products out of the hands of consumers,” he added.

Google is making an effort to swing a deal with global regulators to avoid Microsoft’s fate.

Multimedia

WASHINGTON, DC. MAY 21, 2013:   3-D Display with Haptic Touch Screen can be applied to medical and robotics, at Microsoft TechFair in Washington, DC on May 21, 2013. ( Photo by Jeffrey MacMillan )

Microsoft showcases new technologies in D.C.

The software giant displayed some of its most cutting-edge innovations at a fair.

More tech stories

Dish Network campaigns against SoftBank in bid for Sprint

Dish Network campaigns against SoftBank in bid for Sprint

As it tries to win a bidding war, Dish raises national security concerns against Japan’s SoftBank.

Sir Jony Ive’s new iOS 7: ‘black, white, and flat’

Sir Jony Ive’s new iOS 7: ‘black, white, and flat’

Apple is expected to reveal a new iOS 7 at its Worldwide Developer Conference. And there are some big changes in store.

All about Waze: Why Google or Facebook might want it

All about Waze: Why Google or Facebook might want  it

As more firms add social data to their maps, the community-based navigation app is looking attractive.

This week, it submitted a plan to European regulators to address their concerns. It has also bulked up its lobbying and legal staff in Washington and in Europe.

Google denies that it is monopolistic. “Every week there is an announcement about a new product or service. It’s an extremely competitive industry and is only getting more competitive,” Google spokeswoman Mistique Cano said.

What the company most wants to avoid, analysts say, is the burden of a decades-long antitrust case.

Microsoft’s antitrust battle began in 1998, has stretched over three continents and cost the company more than $2 billion in fines.

Justice lawyers had been working on the Microsoft case until last year, when the agency finally ended its enforcement of its 2002 judgement against software giant.

The agency credits the antitrust suit for greater competition in today’s market.

“Microsoft no longer dominates the computer industry as it did when the complaint was filed in 1998,” the Justice Department said in a May 2011 news release announcing the closing of its case. “The final judgement helped create competitive conditions that enabled new kinds of products, such as cloud computing services, and mobile devices, to develop as potential platform threats to the Windows desktop operating system.”

But industry analysts say the computer giant might have been slowed by the antitrust scrutiny. New product and marketing plans had to be vetted by antitrust lawyers — a burden its competitors didn’t face.

The case has forced Microsoft to develop one of the strongest and most cunning lobbying operations in Washington and Europe, observers say. Microsoft said it was disappointed with last week’s ruling in Europe but declined to comment on whether it would appeal the fine.

Perhaps knowing just how damaging a federal probe can be, Microsoft has been one of the companies that have lobbied the FTC to probe Google’s search practices, said Goldman, the technology professor.

“Of course companies also don’t mind using regulators as a weapon against competition, with Microsoft against Google being the example I see most often,” Goldman said.

Loading...

Comments

Add your comment
 
Read what others are saying About Badges