The Author forgot to take into account that Microsoft blocking Google adds in their browser would be a gross violation of the anti-competitive laws, making Microsoft legally liable for all of Google’s financial losses resulting from such action on Microsoft’s side.

Thank you for the note. Yes, and a recent case is Intel and AMD. The European Commission alleged Intel offered customers volume discounts that not only reduced unit cost but also increased market share for Intel. The EU competition commissioner further added that Intel “went to great lengths to cover up its anti-competitive actions.”

Anti-competitive allegations are enacted by corporations. A corporate entity cannot go to jail. It is often settled with a financial fine. Thus, it becomes a numerical, cost-benefit analysis. Would volume production/adoption from gained market share outweigh the financial risk?

The risks for some industries are lower, such as those in which the experience involves a learning curve. The risks for the microchip industry is higher due to the plug-and-play, interchangeable, modular system architectures.

However, the Intel case is now 8 years in progress. In these 8 years, Intel has intertwined its sales team into the upper echelon of decision making executive offices etching out multi-year contracts based on personal relations.

From the strategic growth standpoint, Microsoft is under shareholder pressure to grow. The online advertising industry is one of Microsoft’s exit vent. The question of whether to “starve Google” will materialise when Microsoft loses the option to make this decision as they lose more browser shares to Firefox and Google start to threaten Microsoft’s desktop renewal revenue.

Is blocking ads truly violating anti-competition law? How would blocking ads help Microsoft sell its own ads? How would the courts decide? When is the decision? What if it is not anti-competition, then wouldn’t users miss out on a clean, ad-free web experience? Is it still illegal if Microsoft partners with a 3rd Party developer? Is it anti-competition if a start-up do this?

For more information, I recommend The Corporation, http://www.amazon.com/Corporation-Pathological-Pursuit-Profit-Power/dp/0743247442, a read on the Microsoft Anti-Competition Law. Cheers.