Microsoft: What To Do And Not To Do

What, if anything, should Washington do about Microsoft? There is no more important economic policy decision facing the U.S. today. Microsoft Corp. is at the heart of the high-tech New Economy. It is a driving force behind America's amazing prosperity. Yet that very centrality and power raise important questions that cannot be avoided. Anything the Justice Dept. suggests is risky. Amid rapid technological change, the law of unintended consequences is at full force. Smothering the nation's high-tech powerhouse with heavy-handed regulation is the worst possible outcome. But doing nothing may also be unacceptable. In the end, any policy decision must be measured by one economic standard--does it enhance competition and hence choice for consumers?

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