Remedies to Exclusionary Innovation in the High-Tech Sector: Is There a Lesson from the Microsoft Saga?

26 Pages Posted: 14 Oct 2007 Last revised: 3 Sep 2013

See all articles by Maria Lillà Montagnani

Maria Lillà Montagnani

Bocconi University - Department of Law; Ask Research Center; New York University School of Law

Abstract

In the high-tech sector innovative behaviour may have exclusionary effects: In both Microsoft III and IV cases exclusionary practices centred on innovation were deemed generating both anti- and pro-competitive effects - with the latter overcoming the former - to the extent of requiring an antitrust law intervention. Such intervention presents two problems though. Firstly, the question arises as to when innovation becomes detrimental to competition thereby requiring antitrust remedies to be applied. Secondly, it is to assess how antitrust remedies should be designed in order not to stifle the pro-competitive effects that innovative behaviour, although exclusionary, still generate.

This paper addresses both issues above mentioned. The potentially exclusive nature of innovation is the starting point to explore the interface between remedies on the one hand, and (incentives to) innovation on the other, in order to offer considerations on a sound remedies policy.

Keywords: competition law, Microsoft, remedies, innovation, high-tech market, software market, technological tying

JEL Classification: K21

Suggested Citation

Montagnani, Maria Lillà, Remedies to Exclusionary Innovation in the High-Tech Sector: Is There a Lesson from the Microsoft Saga?. World Competition: Law and Economics Review, Vol. 30, No. 4, 2007, Bocconi Legal Studies Research Paper No. 2007-02, Available at SSRN: https://ssrn.com/abstract=1021000

Maria Lillà Montagnani (Contact Author)

Bocconi University - Department of Law ( email )

Via Roentgen, 1
Milan, Milan 20136
Italy

Ask Research Center ( email )

via Roentgen 1
Milan, 20136
Italy

New York University School of Law ( email )

40 Washington Square South
New York, NY 10012-1099
United States

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