Texas swing: the not-so-shocking reason the Lone Star state chose not to sue Microsoft.

AuthorHazlett, Thomas W.

Journalist Jacob Weisberg stared deep into the heart of Texas - and was shocked. Lone Star State Attorney General Dan Morales had gained notoriety as the leader of the anti-Microsoft vanguard, launching antitrust investigations, filing suit, and organizing a national campaign to inflict mortal legal damage on the alleged software monopolist. But when the Texas-based Dell, Compaq, and CompUSA folks paid him a visit, he curled up like a cuddly little kitty. Morales yanked Texas out of the suit filed on May 18 by 20 other state attorneys general and the U.S. Department of Justice, noting that "several officials of Texas' computer industry have expressed concerns that the filing of a lawsuit against Microsoft may negatively impact their companies as well as the consumers of the state."

Weisberg, who covers politics for Slate, reacted in amazement: "The antitrust case against Microsoft may or may not have merit....But Morales' decision is pretty shocking in any event...the decision should be based on whether he believes the company has violated the law. Instead, Morales openly interpreted his duty as promoting the state's commercial interests."

There is something quaint in the innocence Weisberg exudes, and in his assumption that the enforcement of economic regulations is a pristine, nonpolitical endeavor. But what is truly "shocking" is that a political journalist - one whose column is titled "Strange Bedfellows" - would fail to appreciate the financial interests that, just to pick a random example, would drive a crusading attorney general into the toasty warm bed sheets of a few hot computer magnates.

Political science quiz: Today's category is decision making at the Federal Trade Commission and the Department of Justice (the two agencies have joint jurisdiction for antitrust enforcement). The question is, Which is more important in the merger approval process: 1) a sophisticated economic study prepared by staff economists, complete with extensive industry data, statistical analysis, and tight reasoning, or 2) a scratchy, three-minute cell-phone call from the secretary of commerce?

In 1991, the Time Warner buyout of Turner Broadcasting zipped past the FTC, despite a staff report branding the merger as anti-competitive. After Ted Turner and Gerald Levin, the two CEOs involved, visited top officials in Washington, the commissioners tossed the staff work out the window.

Did they disagree with the competitive analysis? Was it a difference of...

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