Don't let the sweater-vests and the (dilettantish) "education reform" work fool you: Bill Gates made his fortune through sheer robber-baronry, presiding over a vicious monopolist that shattered the law in its greedy quest for billions and permanent, global dominance.
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Microsoft's illegal conduct was so blatant, persistent and obviously wicked that it prompted serious enforcement action from the DoJ's antitrust division, which Reagan neutered and which every president since has whittled down even further.
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The most notorious moment in that last-of-its-kind enforcement action was the multi-day, video-recorded deposition of Bill Gates himself, in which he conducted himself so badly that the video went analog-viral, airing on newscasts and being passed hand-to-hand on VHS.
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Today on @arstechnica, @dangoodin001 revisits that momentous week in 1998 when Gates covered himself in everlasting shame and gave us a peek behind the curtain at the private persona of a swaggering monopolist.
Goodin's piece was occasioned by Microsoft's intervention in the Epic-v-Apple affair, in which a Microsoft exec decried Apple's abuse of its "complete monopoly over the distribution of apps … to coerce app developers into using Apple’s payment platform."
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Gates's deposition is a reminder of how far Microsoft's position changed between 1998 and now. As Goodin writes, Gates's plan for the deposition was to obstruct, paint the DoJ as technically incompetent, and to "deny even the most basic of premises in the government’s case."
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This was a brutally stupid plan. It failed SO BADLY. Government lawyer would ask Gates questions like "What non-Microsoft browsers were you concerned about in January of 1996" and Gates would claim not to know what "concerned" means.
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It was the Fat Tony defense: "What's a truck? What's a murder?"
It was so stupid and blatant that people in the gallery started laughing aloud at Gates's obstruction (after all, part of his defense was that he was a genius whose mind could not be understood by mere govvies).
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The deposition really revealed Gates's expectation that he would be deferred to and even worshipped in the manner that his absolute authoritarian rule over Microsoft had accustomed him to.
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As Ken Auletta noted, Gates had never had to sit for a job interview or suffer other routine indignities.
Goodin: "he had little or no experience tolerating—let alone encountering—dissent, criticism, or challenges to his authority."
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But even with a better strategy, Gates would have still been in trouble, because he put a bewildering array of radioactively illegal conduct in writing, and the DoJ had it all in black and white:
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* A conspiracy to force Intuit to bundle Internet Explorer and break compatibility with Netscape
* A conspiracy to modify Windows so Netscape-rendered content would appear "degraded"
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* A conspiracy to make an incompatible version of Java that only ran on Windows, with the goal of "wresting control of Java away from Sun"
* A conspiracy to get Apple to break compatibility with Netscape, tying Microsoft Office improvement to Apple's sabotage of Netscape
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With all this evidence, the fact that Microsoft escaped serious sanction tells you just how degraded antitrust law has become (it's gotten weaker and worse since). But just as telling is the impact that antitrust enforcement had on Microsoft's conduct.
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It's undeniable that the reason web companies like Google survived the 2010s is that Microsoft had lost its nerve, after years of traumatic DoJ investigation and litigation.
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Gates admitted this last year, saying the reason Microsoft didn't bid for Android was they were "distracted" by the antitrust action:
But that action had ended YEARS before Android. When Gates says he was "distracted," he means he was terrified.
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And as @superwuster pointed out, it probably made them a better company. Monoplism makes companies act like mafias, stupid and lazy, with an emphasis on abusive commercial practice rather than technical or organizational excellence.
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When AT&T was broken up in 82, corporatists cried that America was sacrificing its "national champion" just as Japan was eroding America's technical dominance, and without AT&T's monopoly power, America's tech industry was done.
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Instead, breaking up AT&T opened the space for THE ENTIRE INTERNET, and a generation-long American dominance of a system that has become a planetary nervous system, a source of prolonged American dominance and trillions in GDP.
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In other words: Fat Tony is a shitty businessman.
People express dismay at that 2016 photo of Trump with tech's leaders around a Trump Tower boardroom table, aghast that these people who run our tech world were willing to meet with a racist bully.
It's damned hard to prove an antitrust case: so often, the prosecution has to prove that the company *intended* to crush competition, and/or that they raised prices or reduced quality because they knew they didn't have to fear competitors.
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If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
It's a lot easier to prove *what* a corporation did than it is to prove *why* they did it. What am I, a mind-reader? But imagine for a second that the corporation in the dock is a global multinational.
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A lawsuit filed in February accuses Tesla of remotely altering odometer values on failure-prone cars, in a bid to push these lemons beyond the 50,000 mile warranty limit:
If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
The suit was filed by a California driver who bought a used Tesla with 36,772 miles on it. The car's suspension kept failing, necessitating multiple servicings.
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A jury has ordered Blue Cross of Louisiana to pay $421m to a hospital specializing in a much sought-after type of breast reconstruction, primarily for cancer survivors.
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If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
The insurer "preapproved" surgeries for thousands of patients, but then held back 92% of the payments it owed, with CEO Steven Udvarhelyi insisting that "authorization never says we’re going to pay you":
It's been more than a decade in the making, but Facebook - or, if you prefer, Meta - is going on trial for antitrust violations, with the highest possible stakes and the worst possible evidence (for Facebook).
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If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
The Big Tech On Trial blog was started to follow the Google antitrust case, the biggest antitrust case of the century, which was barely noticed by most of the press.
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It's hard to remember now, but for more than three years under Biden, it was possible to read the headlines and feel your government was taking big, decisive action to tame the corporate behemoths that rip you off, maim you on the job, and undermine our democracy.
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If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
Antitrust surge under Biden was remarkable: a sustained, organized, effective policy to support the interests of the majority of people against the interests of a cohort of ultra-wealthy wreckers and looters. According to political science, that surge is impossible.
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It's not that the Republicans and the Democrats are the same...obviously. But for decades - since Clinton - the Dems have sided with neoliberal economics, just like their Republican counterparts.
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If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
So the major differences between the two related to overt discrimination, to the exclusion of the economic policies that immiserated working people, with the worst effects landing on racial minorities, women, and gender minorities.
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