The European Commission is once again targeting an American tech company with an antitrust investigation. This time the EC has its sights set on Oracle and it’s $7.4 billion bid for Sun Microsystems. In short, the worry is that if Oracle acquires Sun, along with it’s popular open-source database software MySQL, that somehow competition in the database market will become nonexistent.

But as Matt Asay at Cnet.com pointed out this week, competition is alive in well in the database market. Amazon recently announced…

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A statement from New York Attorney General Andrew Cuomo this morning announces the launch of an antitrust lawsuit against chipmaker Intel. Intel supposedly is “bribing” and “coercing” computer manufacturers like Dell, HP into using its chips.

Intel gives them money and rebates to use Intel chips. Think about that; they don’t have to pay as much, and get paid themselves, to use Intel chips rather than AMD ones.

I like it when I get rebates and cash, myself, but I’m just crazy.

Let’s…

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Rumors abound that graphics chip maker Nvidia is getting set to enter the x86 processor market. Recall that, according to AMD’s lawyers, the processor market is uncompetitive and being unfairly monopolized by Intel.

Now, if the antitrust lawyers are correct, and the CPU market is uncompetitive and needs government intervention, then there must be some barriers to entry that are keeping other competitors out of the market, allowing Intel to reap outrageous profits. However, if Nvidia can and does enter the processor market…

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The Motion Picture Association of America has come out against net neutrality… sort of. In its filing with the FCC[PDF] late last week, the MPAA reminded the commission of the importance of content companies in driving new infrastructure technologies, and claims that protecting these content companies (i.e. forcing ISPs to filter out file-sharers) is vital for the future health of the internet.

It would seem fair to speculate that file sharing, contrary to the both the MPAA’s and the RIAA’s earlier…

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TorrentFreak reports that a new “network-aware” version of the BitTorrent protocol is being beta-tested. The new client, µTorrent 2.0 or µTP, will be able to regulate its own bandwidth usage (”throttle” itself) to avoid interference with other applications. According to a BitTorrent spokes person, the network-friendly redesign will slow uploads if congestion is detected on a network, but should leave download speeds unaffected in most cases.

The new client also has a feature that will enable users to stop all downloads if…

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Wired reports that a Maryland woman recently lost her job due to an error in the FBI’s criminal database. Eschol Amelia “Amy” Studnitz, formerly a senior accountant for Corporate Mailing Service, was required to undergo a background check after CMS won a contract to handle mail for the Social Security Administration. She was fired from her job after the FBI’s criminal database deemed her “unsuitable” for level-1 security clearance. Studnitz was not given any details regarding her background check.

Two weeks later,…

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This month’s issue of Info Tech & Telecom News contains an article by yours truly on certain states’ attempts to collect sales taxes from out-of-state businesses. Key point:

Economists have known for a long time that when you tax something, you get less of it. Apparently some state legislators want less commerce in their states.

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Net Neutrality’s opponents are fighting back. Last week it was John McCain’s “Internet Freedom Act,” and yesterday, Representative Marsha Blackburn (R-TN) introduced a house version of the bill that would prohibit the FCC from imposing any regulations whatsoever on the internet or internet service providers. From her press release:

“The internet is the last truly open public marketplace. Its openness is the key to its efficiency and success. Not all public spaces need to be regulated spaces. Indeed, federal regulation has a long history…

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The New York Times reports that several cell phone manufacturers are turning to Google’s free operating system, Android, to run on their upcoming smartphone models. The switch to Android is likely to hit Microsoft and its clunky Windows Mobile platform the hardest, as companies that previously used Windows for their high-end PDA-phones seek to cut costs and offer consumers a more customizable product.

With Google joining the ranks of Nokia, Research-in-Motion, Apple, and Microsoft developing in mobile phone operating systems, the big…

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Senator John McCain introduced a bill yesterday to combat the FCC’s push for Net Neutrality.  The “Internet Freedom Act of 2009″ would limit the FCC’s legal authority to impose Net Neutrality rules on internet service providers. McCain’s statement says:

Today I’m pleased to introduce ‘The Internet Freedom Act of 2009’ that will keep the Internet free from government control and regulation. It will allow for continued innovation that will in turn create more high-paying jobs for the millions of Americans who are…

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Why didn’t the Federal Communications Commission impose net neutrality a decade ago? We don’t need all this multimedia and advanced services. They finally caught on yesterday and realized the Net is fine the way it is and doesn’t need to improve anymore, hence “neutrality” in 2009 rather than, say, 1996.

OK seriously, read our critique of yesterday’s FCC vote to impose what is “not neutrality” by any stretch of the imagination.

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The blogosphere has been up in arms over the last two weeks, ever since the Federal Trade Commission issued an update to its “Guides Concerning the Use of Endorsements and Testimonials in Advertising.” In the past, these guidelines have determined the kinds of research claims companies or celebrity endorsers can make about products in advertising. With the recent update, though, the FTC has chosen to extend its reach onto the Internet, applying its regulations to blogs, Facebook pages, even Twitter feeds.…

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On November 4, California regulators may vote to ban big-screen televisions. The large sets use more energy than they would prefer.

Commissioner Julia Levin claims the ban “will actually save consumers money and help the California economy grow and create new clean, sustainable jobs.”

It is easy to imagine the ban costing tv manufacturing jobs; less so the jobs that would take their place.

Fortunately, the ban isn’t terribly enforceable. Consumers can just drive to Arizona, Nevada, or Oregon to get the kind…

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The lawyers at the US Department of Justice must be getting bored around the office. This week, antitrust regulators launched an investigation of IBM’s business practices. The probe was launched after the Computer and Communications Industry Association (which represents several of IBM’s competitors) filed a complaint against IBM, claiming that it has abused its dominance in the computer mainframe market.

This marks the third time in the last sixty years that IBM has had the antitrust dogs on its trail. In 1956…

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A new Maryland law makes it illegal for manufacturers to set a minimum retail price for their products in sales contracts. The law is meant to increase competition. Unfortunately, it will have the opposite effect.

As Wayne Crews and I explain in the The American Spectator, it could prevent retailers from competing with each other on non-price grounds, such as customer service, product demonstrations, and advertising.

Some products, such as televisions or cars, have high information costs. Customers want to know a lot…

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Over at the Detroit News, Hans Bader and I explain why corporations have human rights despite not being human. The reason why? Transaction costs.

This has implications for everything from Intel’s EU antitrust battle to newspapers’ free speech rights.

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Here is a letter I sent recently to The Wall Street Journal:

September 22, 2009

Editor, The Wall Street Journal
200 Liberty Street
New York, NY 10281

To the Editor:

Your article “Bad News for Broadband” (editorial, Sept. 22) hints at, but does not make, a key point: net neutrality proposals are driving a wedge between service providers like AT&T and content providers like Google.

Strange, is it not? Their interests are actually closely aligned. If AT&T upgrades its network, Google benefits from the increased bandwidth. If…

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This week, the New America Foundation called for government-mandated “Truth-in-Labeling” from the nation’s broadband service providers. They’ve even created a mock-up of what they think such a disclosure form should look like. In addition to fees, service limits, and contract terms, NAF would like the disclosures to include information such as minimum reliability, maximum latency, and a service guarantee.

While it’s true that the actual speed a user experiences is often a fraction of the advertised speed, this isn’t secret knowledge.…

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Over at the Washington Examiner’s Opinion Zone, I apply what  I learned back in Economics 101 to the net neutrality debate. It’s all about scarcity.

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The case for regulatory sunset provisions is inadvertently made by an entire chapter in the Code of Federal Regulations devoted to lawsuit rules for the Y2K computer bug from nearly a decade ago.

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