BUSINESSWEEK ONLINE : MAY 15, 2000 ISSUE
NEWS: ANALYSIS & COMMENTARY

Reshaping Antitrust Policy


The New Economy may require new rules. Some competition guidelines that are likely to emerge from the Microsoft case and others:

INNOVATION IS KING
Traditionally, regulators focused on whether companies artificially hiked prices or restricted output. Now, they're increasingly likely to look first at whether corporate behavior aids or impedes innovation.

BREAKUP IS O.K.
In a rapidly changing industry, a one-time change in the competitive structure of the industry, such as a breakup, may be less intrusive and more likely to enhance innovation than long-term regulation of conduct.

DEFEND THE LITTLE GUY
Antitrust policy should pay careful attention to providing small startups--the source of much of the innovation in the economy--with a level playing field.

WATCH HIGH TECH CLOSELY
Industries where the technology is changing quickly and unpredictably need to be scrutinized especially closely by antitrust regulators to make sure that existing companies do not try to slow down innovation.

COOPERATION IS NOT ALWAYS BAD
Antitrust policy should lean over backwards to allow collaboration between competitors when it enhances incentives for innovation.



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