This presentation examines Von Hayek's views on Government intervention in controlling monopolies, taking the example of the US DoJ v/s Microsoft anti-trust lawsuit.

1. Von Hayek’sViews on
Monopolies and the anti-trust
law
Group 1

2. 19911994

3. 1997-1998
Anti-competitive practices like requiring manufacturers
to license another piece of Microsoft software if they
wish to license Windows

4. PC manufacturers had “no commercially reasonable
alternative”
signing exclusionary agreements with PC
manufacturers that prevented them from distributing
software from Microsoft’s competitors
imposing exclusionary agreements restricting
companies from providing services to Microsoft’s
competitors
forestalled a desirable competitive
market

5. Breakup of Microsoft into two companies

7. Von Hayek was NOT an advocate of pure laissez faire and
the minimal state!
Provision of public goods Prevention of public harm
Any coercion must follow known, general laws which
apply to all

9. In Constitution of Liberty Von Hayek was increasingly
skeptical due to the arbitrary nature of enforcement
In Law Legislation and Liberty - bigness itself is not a
problem, unless government itself creates special,
artificial advantages to bigness through tax policy
Inability of the Government to distinguish between Good
and Bad Monopolies

10. The role of the government should be restricted to
preventing -
discrimination by a monopolist
prevention of competition by a monopolist