Breaking up of Microsoft
In the year 2000 a federal judge ordered that Microsoft be split into two separate companies because it had violated the antitrust laws of the United States. Some argue that the antitrust law are justified on grounds of the efficiency of competition. that is, breaking up a monopoly should result in a Pareto-efficient change. This cannot be so because breaking up Microsoft clearly makes its shareholders worse off. Do you agree or disagree? Explain your answer.