Assistant U.S. Attorney General Joel Klein discussed the need for government intervention in monopoly cases in a speech at the Rockefeller Center on Friday.
Klein, head of the Justice Department's Anti-Trust Division, used his department's on-going investigations into the Microsoft Corporation as an example of when legal intervention is appropriate to stop actions prohibited by U.S. monopoly laws.
Approximately 50 people, mostly male students, listened to Klein's speech, "Public Service: Preserving Competition in the New Economy." He said Microsoft is illegally using its Windows monopoly on operating systems to gain market share in the Internet browser industry.
Before a recent settlement was reached, Microsoft required computer manufacturers, who depend on the Windows Operating System, to keep the company's browser, Internet Explorer, on the computer's hard drive and its corresponding icon on the desktop.
Under the settlement, manufacturers are free to use competitor's browsers like Netscape's Navigator.
The battle has a number of ties to Dartmouth: the lead attorney for Microsoft is Bill Neukom '64, a member of the College's Board of Trustees, and the judge presiding over the anti-trust case is also a Dartmouth alumnus, Thomas P. Jackson '58.
Klein began his speech by joking that until recently he had not been aware that a degree from the College was necessary to be successful in anti-trust law.
Klein said while the Microsoft's Windows monopoly is permitted by the Justice Department because of how Microsoft fairly gained its control, the practice of "tying" another product to Windows is strictly forbidden.
"Microsoft should compete vigorously, but their products should compete on their own legs," Klein said.
After his speech, Klein refused to answer audience members' questions on the future of his investigation.
Industry experts expect Microsoft to seamlessly integrate the operating system and its browser in its soon to be released upgrade, Windows 98, making the two products one unit and therefore immune to "tying" laws.
Klein also addressed the problems of enforcing the nation's anti-trust laws in today's economy. Two of the biggest obstacles come from an increasingly global and technical economy.
With U.S. companies competing in a world-wide arena, Klein talked about the difficulties that arise from the varying monopoly laws in other nations.
He also discussed the difficulty in prosecuting international corporations. "We don't have search and seizure laws in many nations" and therefore evidence can be lost, Klein said.
The second problem Klein discussed involved high-tech corporations. Since a product's importance to consumers change so rapidly in this area, "if you don't move quickly, it will be too late," he said.
He spoke about the ideological opponents who disagree with his actions to enforce anti-trust laws and believe that companies should be free to compete in the U.S. economy in any way.
He dismissed accusations of his participation in big government by saying, "I see myself as the referee in a boxing match. I want the boxers to fight it out, but fight fairly ... competition is the best thing for this economy and I want to see it preserved."
Klein began and ended his speech by calling on students to consider politics and government as a possible career choice. He spoke of the good aspects of government which are often overlooked in the public's mind.
Klein received his undergraduate education at Columbia University and his law degree from Harvard Law School. He initially entered the Clinton administration as deputy assistant to the president, taking over for Vince Foster after his death.
