Did Microsoft illegally tie its Internet Explorer browser to its Windows operating systems?
The appeals court sent this issue back to the trial court, with a twist. Jackson found that Microsoft’s tying of the Windows operating system to the Internet Explorer Web browser was illegal without requiring a cost-benefit analysis of its effect on consumers. But the appeals court said the government must show that whatever harm Microsoft’s tying caused to the Web browser market outweighed any benefits to consumers in the operating systems market in the form of lower prices. In short, the government must answer the question: “Yeah, they did it, but was anybody hurt?” Worse, the government is going to have to do this with one or both hands tied behind its back. Because the court decided the government failed to make the required arguments in Issue #2 the first time around, it can’t make them now with regard to this issue. It’s a technical point, but in the end it’s not good for the government, better for Microsoft. Remedy: Microsoft should be broken up into two parts — an operating sy
