Monday, September 17, 2007

The revenge of the competition regulators

Microsoft has lost its appeal against the half-a-billion euros fine imposed in 2004 by the European Commission for anti-competitive behaviour.

The network effects in many digital markets make competition law more vital than ever if we are to see vibrant free markets. A loss today for the Commission's competition directorate would have been disastrous, forcing them to tread much more carefully in regulating digital monopolists. Hopefully this morning's ruling from the Court of First Instance will encourage them to act more boldly in future.

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