ANTITRUST
In AOL's Suit Against Microsoft, the Key Word Is Access (NYT)
Author of Antitrust Law Says Microsoft Failed to Comply With
Lobbying Curbs (WSJ)
Letter To Senator Ernest Hollings On Media Antitrust Review (CU)
Microsoft-DOJ Proposal Not In The Public Interest (CFA)
ADVERTISING
Taking On an Antismoking Campaign (NYT)
ANTITRUST
IN AOL'S SUIT AGAINST MICROSOFT, THE KEY WORD IS ACCESS
Issue: Antitrust
The sweeping lawsuit filed on Tuesday by AOL Time Warner on behalf of its
Netscape subsidiary against Microsoft reflects AOL's fears that Microsoft,
if left unchecked, will use its software to control how AOL's media assets
are packaged and delivered over the Internet. "This lawsuit is about the
future and how that future will play out," said Neil MacDonald, an analyst
with the Gartner Group. "AOL is trying to challenge the Microsoft threat
here and now." AOL worries that if Microsoft succeeds in dominating crucial
new layers of Internet software - as it dominates the vital operating system
layer on the PC - innovation, consumer choice and, of course, companies like
AOL will suffer. "If AOL succeeds in its suit, it will have the effect of
keeping the platform open," said Lawrence Lessig, author of "The Future of
Ideas" and a professor at Stanford law school. "But you do have to ask who
are these guys to be complaining."
[SOURCE: New York Times, AUTHOR: Steve Lohr]
(http://www.nytimes.com/2002/01/24/technology/ebusiness/24SOFT.html)
AUTHOR OF ANTITRUST LAW SAYS MICROSOFT FAILED TO COMPLY WITH LOBBYING CURBS
Issue: Antitrust
According to Former Sen. John V. Tunney, Microsoft failed to comply with a
federal law, which he authored, aimed at preventing political contributions
and lobbying from influencing antitrust settlements with the government. In
its Tunney Act filing, Microsoft reported only a handful of contacts with
the government, failing to disclose any of its extensive lobbying of
Congress or a White House meeting last summer between its chief executive,
Steve Ballmer, and Vice President Dick Cheney. "The disclosure provisions
were designed to help ensure that no defendant can ever achieve through
political activities what it can obtain through the legal process," wrote
Mr. Tunney, a California Democrat who left the Senate in 1977. Also
Thursday, the American Antitrust Institute, an independent, Washington-based
research and advocacy group, filed a complaint in U.S. District Court asking
that Microsoft be required to provide a more detailed record of lobbying and
other contacts related to the settlement.
[SOURCE: Wall Street Journal, AUTHOR: Nicholas Kulish And John R. Wilke]
(http://interactive.wsj.com/articles/SB1011887914935155600.htm)
(requires subscription)
LETTER TO SENATOR ERNEST HOLLINGS ON MEDIA ANTITRUST REVIEW
Issue: Antitrust
In a letter to Senator Ernest Hollings, Chairman, Committee on Commerce,
Science, and Transportation, a coalition of consumer groups expressed
concern about the Bush administration's plans to transfer the oversight of
media industry mergers from the Federal Trade Commission (FTC) to the
Department of Justice (DOJ). The groups claimed that such a move would be
extremely detrimental to the public interest and to media consumers.
"Rigorous antitrust oversight is more critical now than ever," they wrote.
"We fear that this same lack of vigor will pervade all media ownership
reviews if the DOJ is allowed to usurp the FTC's role."
[SOURCE: Consumers Union]
(http://www.consumersunion.org/telecom/hollingdc102.htm)
MICROSOFT-DOJ PROPOSAL NOT IN THE PUBLIC INTEREST
Issue: Antitrust
Consumer groups filed comments today urging Judge Colleen Kollar-Kotelly of
the District Court for the District of Columbia to reject the final judgment
proposed by Microsoft and the Department of Justice, calling it
"fundamentally flawed". According to Mark Cooper, director of research of
Consumer Federation of America, "The public interest is not served by this
'win-lose' proposal - Microsoft wins and consumers lose." He added that,
"the final judgment needs to stop Microsoft's antitrust violations, deny the
company the 'fruits' of its illegal conduct, and prevent further violations.
What Microsoft and DOJ have proposed does none of the above."
[SOURCE: Consumers Union]
(http://www.consumerfed.org/Groups_tunney_comments__release_20020125.PDF)
ADVERTISING
TAKING ON AN ANTISMOKING CAMPAIGN
Issue: Advertising
Lorillard Tobacco of Greensboro, N.C., is formally threatening legal action
against the American Legacy Foundation, which was created as part of the
1998 settlement between the tobacco companies and 46 states to run
antismoking ads. Lorillard charges that the foundation exceeded its mandate
under the settlement by disparaging the tobacco industry. The foundation's
president, Cheryl Healton, called Lorillard's objections to the Truth
campaign a "smoke screen," suggesting that they were motivated by its
seeming effectiveness. She cited as proof a University of Michigan study
released in December that found that teenage smoking had decreased sharply
from 1996 to 2000.
[SOURCE: New York Times, AUTHOR: Bernard Stamler]
(http://www.nytimes.com/2002/01/23/business/media/23ADCO.html)
(requires registration)
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