Re: ONLINE-ADS>> Opinions on Yahoo's Monopoly Status

Michael Sexton (msexton_at_amazonweb.com)
Mon, 5 Jan 1998 17:39:57 -0500

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Wayne

My gut reaction is that they are not at risk because they do not have
the dominant market share that is needed to trigger an Antitrust
investigation. Moreover, they are not using their dominant position to
increase prices or prevent competition ... at least at this point.

Yahoo is also in an odd position because it is a unique search engine.
Yahoo does not use technology to spider sites, it reviews the sites
indivdually then reates an index. As far as I know, no one has
attempted to duplicate this effort. Is this because Yahoo is keeping
people out or because the cost of starting up a similar venture are so
high? That is not a question that is easily answered from the popular
press.

Microsoft, according to the government (and I agree) violates the
Antitrust laws thru a tying arrangement, thus keeping competition out
of the browser market. A tying arrangement ties two unrelated products
together like operating systems and web browsers. The arrangement uses
the monopoly power in the operating systems area to prevent competition
in the Browser market.

Other Antitrust violatioions would occur if the company used its power
to raise prices. Microsoft has lowered prices thus no violation. No
blood, no foul.

My $.02

Mike

******************************************************
Michael J. Sexton, J.D.
Consultant
Intelligent Environments
www.ieinc.com
E-mail: msexton_at_ieinc.com
Voice: 617-272-9700
Fax 617-272-9300

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