One Proposed Remedy for the Microsoft Antitrust Case Is to Break

question 8

Essay

One proposed remedy for the Microsoft antitrust case is to break Microsoft into three equal parts and strictly prohibit any coordination between the parts.The three mini-Microsoft's would then compete with one another in both the operating system and applications markets.From a Systems Competition perspective, comment on how this proposed settlement might eventually affect consumers.

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Definitions:

Parent Company

A corporation that owns more than 50% of the voting stock of another company, giving it control of the subsidiary's operations and strategic direction.

Voting Stock

Shares that give the shareholder the right to vote on company matters, such as electing the board of directors.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Equity Methods

An accounting technique used for recording investments in associate companies where the investor has significant influence but does not have full control or majority ownership, typically implying ownership of 20% to 50% of the voting stock.