One of my grad school professors, the late Dr. Thomas Muth, told us that he was far less interested in analysis, whereby you grind ideas down to a smaller form, than synthesis, in which you combine parts of different ideas together to build something new. I’m bringing this up because the whole Comcast / Time Warner Cable merger has me thinking about the antitrust law I learned from another grad school prof, Dr. Barry Litman, and I’m smashing a few of those ideas together.
Actually, this starts with my previous blog post, where I mentioned in passing that Microsoft used to be very active in video codec development, getting WMV9 adopted as part of the Blu-Ray spec. You know what else Microsoft used to be? A convicted monopolist. It’s almost forgotten today, but the initial ruling in United States v. Microsoft was that the company had illegally used its market power and should be broken up. This was later partially overturned on appeal, and the DOJ effectively walked away from the case under the Bush administration.
Still, it’s remarkable to think that in barely over a decade, we’ve gone from contemplating the break-up of Microsoft, to the widely-held perception that the Comcast / Time Warner Cable merger will easily win approval. Regulatory capture, FTL.