Laissez-faire capitalism

By Kristoffer Bohmann, Bohmann Usability

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Laissez-faire capitalism. Partly good news. Microsoft will not be split up (this time). A US appeals court has overturned a ruling from June last year that found Microsoft to be guilty of abusing monopoly powers and ordered Microsoft to be split in two.

For a moral defense of Microsoft, read Thomas Sowell on Microsoft and the Mythology of Anti-trust "Law" and Richard M. Salsman on What does Competition mean under Capitalism? (comment on the antitrust lawsuit). In Salsman's opinion - as in mine - government should uphold and enforce market contracts-not violate freedom of contract by dictating the terms, changing the terms, or abrogating the terms of contracts.

Update (June 29). I was not completely correct in yesterdays comment on the Microsoft antitrust appeal. The appeal court ruling was not a clear victory to Microsoft, only a new chance in a different court room. The appeal had two main elements:

Microsoft appealed the District Court's judgment that monopoly power had been used and the premises for this judgment. The appeal court rejected the appeal completely.
Microsoft further appealed the order to split up Microsoft in two distinct companies. This decision was accepted by the appeal court. The case will be reassigned to a new trial judge. So, Microsoft gets another chance in court.

The original ruling found that Microsoft had violated зз1 and 2 of the Sherman Act. з1 makes it unlawful to make written or tacit contracts if they constrain trade and commerce. з2 makes it unlawful to monopolize a market (e.g., companies must be pro competitive).

By rejecting Microsoft's appeal the appeal court has legitimated the use of anti-trust policies in the US IT industry. Unfortunately, this leaves plenty of room for state intervention and other socialist policies supported by companies and bureaucrats who hate the commercial success of others. Argh!

Kristoffer Bohmann

Laissez-faire capitalism

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