Did the Microsoft Case Change the World?

[Commentary] Government oversight not only swayed Microsoft to pull its punches, it sent a signal to other innovators that it was OK to work on technologies that Microsoft was interested in -- something they might never have done before.

Had Internet Explorer become as dominant as Windows, Microsoft could have held more sway over the development of new services on the Web. Today, Microsoft is way behind the curve. New innovators, like Google and Facebook, have emerged with big power over their respective markets. Yet the precedent of Microsoft’s antitrust case poses an important question about the future: Should we worry about dominant information technology companies, or can we simply wait for the next big thing to bump them aside? Microsoft thinks we should worry. Last June, it filed a letter about Google with the Federal Communications Commission. It said: “When a single entity achieves dominance and thereby becomes a gatekeeper, there is an inherent risk that it may have both the incentive and ability to place its own interests above consumers’ interests in access to a broad and diverse range of content, services and viewpoints.” Regulators agree. The European Commission is deciding whether Google abused its search dominance, and American authorities are considering an investigation. We support these efforts. Innovation needs competition.