1. Antitrust in e-Commerce Law of e-Commerce October 20, 2008 Guest – Randy Gordon Copyright, Peter Vogel, 2004-2008

2. Department of Justice

3. USDOJ Antitrust Division

4. Federal Trade Commission

7. Computer Industry US vs. IBM Apple vs. Microsoft US vs. Microsoft US v. Oracle

8. 1st Big Bang >>>1890 Census Dr. Herman Hollerith (1860-1929)

9. 2nd Big Bang >> World War II Invention of Computers

10. US vs. IBM 1937- Consent Decree about punch card monopoly January 1969- Antitrust lawsuit filed July 1969- Consent Decree about bundling 1981 - Dismissed

11. 3rd Big Bang>> 1981 IBM’s Personal Computer

12. Before IBM PC Two Major Operating Systems 1.Apple Computer 2.CP/M Operating System owned by Digital Research

13. Microsoft v. CPM

14. IBM Plan for the PC Intel microprocessors Control 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, etc Microsoft OS ran on Clones in competition with IBM using a version then call MS-DOS

15. Xerox Star

16. Apple Lisa

17. Windows 1.0

18. Windows 2.1

19. Windows 3.1

20. 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 - 9 th Circuit held that GUI cannot be copyrighted

22. Software & Hardware Operating System Word Quicken Browser Excel … CPU (Central Processing Unit) disk monitor printer

23. OEM API …

24. Communications Protocols server

25. EU Fines Microsoft

27. 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)

34. EU clears Google-DoubleClick

36. Sources of Antitrust Law US–Federal law Sherman Act Clayton Act FTC Act Industry-specific acts US--State law Foreign law EU/Treaty of Rome National acts

37. Distribution Issues Section 1 of the Sherman Act: prohibits “contracts, combinations, or conspiracies” in restraint of trade.

38. Distribution Issues Section 2 of the Sherman Act >Prohibits abusive monopolies based on intent and great market power

39. 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.