Comment on The Microsoft Antitrust Policy Case

This paper both responds to Economides analysis and attempts to address the Microsoft case from a broader than U.S. perspective. The importance of the roles played by disloyalty payments, compatibility requirements, information asymmetry and the rather static nature of market definition, particularly in the context of allegations of tying, in the Microsoft case are highlighted. In contrast to the position in the U.S., the European Commission acts for all EU member states and has its disposal the possibility of imposing large fines. However, structural remedies are not available to the European Commission. Comity procedures, by allowing for the inclusion of foreign surplus in domestic welfare functions, offer a model for international co-operation in the future application of competition laws.