Bill Gates

clearly motivated by the idea that we want our windows platform to maintain the power it enjoys from its monopoly market share so there's a sympathetic view for sure of hey this is core functionality to an operating system whether it's a feature or an application that we bundle and also clearly the reason you are incentivized to ship your own browser is to cut off the air supply of potential competitors that develop the platform of the future yes

clearly motivated by the idea that we want our windows platform to maintain the power it enjoys from its monopoly market share so there's a sympathetic view for sure of hey this is core functionality to an operating system whether it's a feature or an application that we bundle and also clearly the reason you are incentivized to ship your own browser is to cut off the air supply of potential competitors that develop the platform of the future yes

And it's important to know what they're basically asking is, this is not about future versions. You know, we know you're doing some kind of Windows 98 thing. We're saying right now, stop shipping IE bundled into Windows. Microsoft insists this is an integrated product. You cannot do that.

And it's important to know what they're basically asking is, this is not about future versions. You know, we know you're doing some kind of Windows 98 thing. We're saying right now, stop shipping IE bundled into Windows. Microsoft insists this is an integrated product. You cannot do that.

And it's not even necessarily a legal argument yet of we're allowed to do this because it's an integrated feature. They're saying we ship a pile of code and you actually cannot just rip out Explorer. And if you remember at this time, you could do all sorts of crazy stuff. Like you could paste a web address anywhere. in Windows Explorer, and it would render even though it wasn't Internet Explorer.

And it's not even necessarily a legal argument yet of we're allowed to do this because it's an integrated feature. They're saying we ship a pile of code and you actually cannot just rip out Explorer. And if you remember at this time, you could do all sorts of crazy stuff. Like you could paste a web address anywhere. in Windows Explorer, and it would render even though it wasn't Internet Explorer.

So there actually was like, if you think back to that sort of vision of the browser is integrated into the Windows shell, and it sort of happened, a browser was not really, at least Internet Explorer, was not really its own standalone thing. It was deeply integrated. Now, could they have pulled it apart is a different question if they really wanted to.

So there actually was like, if you think back to that sort of vision of the browser is integrated into the Windows shell, and it sort of happened, a browser was not really, at least Internet Explorer, was not really its own standalone thing. It was deeply integrated. Now, could they have pulled it apart is a different question if they really wanted to.

Right. So the federal judge, Thomas Penfield Jackson, orders them to do it anyway. Or more specifically, he ordered Microsoft to ship a version of Windows to the PC makers, the OEMs or original equipment manufacturers. That didn't include IE so that those OEMs could load those onto the PCs that they were going to ship to customers if they wanted to.

Right. So the federal judge, Thomas Penfield Jackson, orders them to do it anyway. Or more specifically, he ordered Microsoft to ship a version of Windows to the PC makers, the OEMs or original equipment manufacturers. That didn't include IE so that those OEMs could load those onto the PCs that they were going to ship to customers if they wanted to.

And Microsoft said, we told you we can't do that, but you're a judge and you're ordering us to. So they do. And surprise, surprise, when you just disable a bunch of code that other code depends on, it doesn't work. So then, of course, two things happen.

And Microsoft said, we told you we can't do that, but you're a judge and you're ordering us to. So they do. And surprise, surprise, when you just disable a bunch of code that other code depends on, it doesn't work. So then, of course, two things happen.

Judge Jackson is not pleased, since it appears Microsoft is complying with the letter of the law but violating the spirit and sort of thumbing its nose and being arrogant. So that's thing one. Thing two is obviously the PC makers don't actually ship this version of Windows, so it never sees the light of day. And so things get real petty, real fast.

Judge Jackson is not pleased, since it appears Microsoft is complying with the letter of the law but violating the spirit and sort of thumbing its nose and being arrogant. So that's thing one. Thing two is obviously the PC makers don't actually ship this version of Windows, so it never sees the light of day. And so things get real petty, real fast.

The DOJ asks the court to hold Microsoft in contempt.

The DOJ asks the court to hold Microsoft in contempt.

And this is interesting because this is when it really hammers home the idea of what we, the U.S. courts, care about is consumer welfare. We haven't explored the idea of if Microsoft is a monopoly or not yet. But for now, what we are saying is as long as what they are doing is in the consumer best interest, they're not causing harm, they're not raising prices, then it's okay.

And this is interesting because this is when it really hammers home the idea of what we, the U.S. courts, care about is consumer welfare. We haven't explored the idea of if Microsoft is a monopoly or not yet. But for now, what we are saying is as long as what they are doing is in the consumer best interest, they're not causing harm, they're not raising prices, then it's okay.

Correct.

Correct.