Microeconomic Consulting & Research Associates Inc. (MiCRA)
Economist and principal
CAREER HIGHLIGHTS:
Warren-Boulton has written numerous publications in the application of industrial organization economics to antitrust and regulatory matters, including papers that deal with the computer industry.
EXPECTED TO TESTIFY:
In direct testimony submitted to the court on Nov. 18, Warren-Boulton concluded that Microsoft possesses monopoly power in the personal-computer market and is projected to retain a market share of 90% for several years. This market share is protected by "substantial barriers to entry," he testified, because software developers are reluctant to incur the costs of writing programs for other operating systems. A competing browser would be a key long-term threat to Microsoft's monopoly power because it can serve as a "platform" to which application developers write, he wrote. Because of that threat, Warren-Boulton wrote, Microsoft has engaged in practices that "significantly impede" rival Internet browsers.
Among those practices: contractual restrictions in its Windows licenses with computer makers that serve to "bias" consumers' choice of browsers to Microsoft's Internet Explorer over Netscape Communications Corp.'s Navigator browser. He also noted that Microsoft's requirements that computer makers bundle Microsoft's browser as a condition of licensing Windows and its contracts with Internet service providers that place restrictions on their promotion of Netscape's browser make it more difficult for other browsers to maintain market share, thereby curtailing choice for consumers
He also claimed that these practices "cannot be justified on efficiency grounds" -- that they don't improve competition. "The cost to consumers from Microsoft's maintenance of its PC operating-system monopoly, and the creation of a new monopoly in Internet browsers, through exclusionary practices would be substantial," he wrote.
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