Background Note | HBS Case Collection | 2002

States vs. Microsoft, The

by Michael A. Wheeler and Gillian Morris

Abstract

Although the federal Justice Department managed to settle its massive antitrust litigation against Microsoft in 2001, the state suit against the company continued. State attorney generals, perhaps emboldened by their recent victory over the Big Five tobacco companies, held out for stricter measures against Microsoft's alleged anticompetitive practices. The dynamics of this multiparty, multi-issue mediation illustrate the complexities of reaching viable settlements in public-private negotiations.

Keywords: Service Operations; Public Ownership; Private Ownership; Negotiation Deal; Goals and Objectives; Lawsuits and Litigation; Decision Making; Information Industry; Legal Services Industry;

Format: Print

3 pages

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Citation:

Wheeler, Michael A., and Gillian Morris. "States vs. Microsoft, The." Harvard Business School Background Note 902-177, February 2002.

On the surface, warfare and negotiation may seem to be polar opposites. The objective in war is to defeat the enemy. In negotiation, the goal is to find a solution that satisfies all the parties. Not surprisingly, little cross-learning and exchange has occurred across the two domains. In spite of important differences, however, the dynamics of war and negotiation have much in common. Specifically, both involve the interaction of motivated agents with distinct interests, perceptions, and values (especially in high-stakes contexts). As a result, robust strategy, creativity, and nimble tactics are essential both on the battlefield and at the bargaining table. Just as negotiation theory could be enriched by principles of maneuver warfare, military doctrine offers officers and soldiers a potentially useful foundation to better understand and manage the negotiation process, especially in complex, cross-cultural contexts.

Six different business disputes, all in the shadow of pending litigation, are described. Students are asked to recommend the appropriate method of dispute resolution (mediation, arbitration, mini-trial, etc.) for each one, depending on the circumstances, especially to assess likely barriers to unassisted negotiation.

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