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Monday, May 11, 2009

Tech firms could see fallout from antitrust shift

By Jordan Robertson May 11, 2009

If the Obama administration is serious about more aggressively responding to antitrust complaints, some of technology's biggest companies could have to rethink their business strategies or expansion plans. The administration said Monday it has abandoned Bush-era policies that it criticized as too friendly to companies that dominate their markets. The Justice Department didn't call out any companies by name, and its shift in approach will affect all industries. But it raises the stakes for tech heavyweights whose practices have been questioned elsewhere more than in the United States. For instance, Intel Corp. could face a steep fine in Europe this week over its behavior in the microprocessor industry. An IBM Corp. competitor is accusing the company in Europe of manipulating the market for mainframe computers. Microsoft Corp. — a marquee antitrust defendant during the Clinton administration — has been battling other charges in Europe in this decade as well. Tougher antitrust enforcement could also focus on Google Inc., whose leading market shares in online search and advertising markets were already drawing scrutiny in the waning days of the Bush administration.

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