Nonetheless, the cartel met in Hawaii in 1994, under the guise of setting up a new association. The video showed executives debating the new level at which to fix their prices. Klein began his discussion of the Microsoft case by noting that market share is a highly-prized commodity in the new economy. Market power, how it is acquired and abused, is at the heart of the competitive economy. Klein applauded the adaptability of antitrust theory, and its ready application to the facts of current economy.
New entrants face substantial barriers because of network effects and feedback loops.
Browser share was No. 1 at Microsoft, a no revenue product. Because they knew if the browser market took hold, it would be a platform to commodify Windows. Klein said such practices cause serious harm by deterring innovation. The important point is Microsoft's dominance on the desktop is every bit as real today as it was five years ago. This case is not over.