antitrust in e-commerce law of e-commerce october 20, 2008 guest – randy gordon copyright, peter...

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Antitrust in e-Commerce

Law of e-CommerceOctober 20, 2008

Guest – Randy Gordon

Copyright, Peter Vogel, 2004-2008

Department of Justice

USDOJ Antitrust Division

Federal Trade Commission

Computer Industry

US vs. IBM

Apple vs. Microsoft

US vs. Microsoft

US v. Oracle

1st Big Bang >>>1890 Census

Dr. Herman Hollerith (1860-1929)

2nd Big Bang >> World War II

Invention of Computers

US vs. IBM

1937- Consent Decree about punch card monopoly

January 1969- Antitrust lawsuit filed

July 1969- Consent Decree about bundling

1981 - Dismissed

3rd Big Bang>> 1981 IBM’s

Personal Computer

Before IBM PCTwo Major Operating Systems

1. Apple Computer

2. CP/M Operating System owned by Digital Research

Microsoft v. CPM

IBM Plan for the PC

Intel microprocessorsControl PC market by limiting OS to only IBM

built machines using PC-DOS (Disk Operating System)

IBM lost control of the Basis Input/Output System (BIOS)

Clone market developed – Compaq, HP, etcMicrosoft OS ran on Clones in competition with

IBM using a version then call MS-DOS

Xerox Star

Apple Lisa

Windows 1.0

Windows 2.1

Windows 3.1

Evolution of Windows

Xerox Research Labs created GUI (Graphic User Interface) with mouse sold “Star”

Xerox licensed Apple the GUI

1985 Apple licensed Microsoft GUI for Windows 1.0

Apple sued Microsoft for Windows 2.1 for copyright infringement, and later Windows 3.0

1994 - 9th Circuit held that GUI cannot be copyrighted

Communications Protocols

server

server

EU Fines Microsoft

Enterprise Resource Planning (ERP)

Human Relations Management (HRM)

Financial Management Systems (FMS)

Customer Relations Management (CRM)

Supply Chain Management (SCM)

Product Life Cycle Management

Business Intelligence (BI)

Sources of Antitrust Law

US–Federal law Sherman ActClayton ActFTC ActIndustry-specific acts

US--State law Foreign law

EU/Treaty of Rome National acts

Distribution Issues

Section 1 of the Sherman Act:

prohibits “contracts, combinations, or conspiracies” in restraint of trade.

Distribution Issues

Section 2 of the Sherman Act

>Prohibits abusive monopolies based on intent and great market power

Business Combinations:Mergers, Acquisitions, Joint Ventures. Section 7 of the Clayton Act Types of merger subject to competitive scrutiny

include:

Horizontal merger, which is a merger of competitors

Vertical merger , which unites companies that stand in the relationship of supplier and buyer

Conglomerate merger , which is a merger of companies that are not competitors and do not stand in a buyer-supplier relationship.

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