America's No. 1 financial conglomerate

Chapter 416 was actually split up.

In its final judgment, the judge stated, "Upon investigation by this court, it was found that Microsoft Corporation, through unfair competition practices such as bundling and exclusive agreements in the personal computer operating system and related software market, substantially hindered the process of technological innovation and seriously damaged the legitimate rights and interests of consumers and the order of market competition."

"Based on the fundamental purpose of maintaining fair market competition, the court ruled to break up Microsoft's businesses and restore normal market competition."

The verdict struck like a thunderbolt through the global technology industry, sending shockwaves through Silicon Valley.

The Nasdaq Composite Index plummeted, and Microsoft's stock price plunged like a burst dam.

"Is Microsoft really going to be broken up?" Hamilton stared intently at the television, his voice still filled with undisguised shock and disbelief.

"No," Ernst slowly shook his head, his gaze fixed on the scrolling details of the verdict on the screen. He said calmly and steadily, "Didn't you hear the judge's ruling mention that Microsoft was given a two-year grace period for enforcement? And Microsoft's legal department just issued a statement immediately, clearly stating that they will appeal and defend the company's future and shareholder rights at all costs."

Probation is basically equivalent to not serving a sentence.

In the tech industry, buffer periods often become a loophole for companies to delay the enforcement of judgments, and many judgments ultimately fizzle out during lengthy appeals processes.

"You mean?" Wenger turned to look at Ernst.

Ernst nodded slightly, then pointed to the large screen. At that moment, the TV screen switched to the Microsoft team's view. "Do you see that? Bill Gates' expression right now."

Following Ernst's finger, everyone looked at the screen and saw Bill Gates with his hands naturally hanging at his sides, but his eyes were somewhat unfocused, carrying a hint of...

Shock and confusion?

They seemed surprised by the verdict.

"This kind of expression shouldn't be on Bill Gates' face," Ernst said sharply, "His expression should be one of triumphant joy or somber disarray, definitely not the bewildered and surprised look he has now."

Wenger pondered; everything today was too strange and too abnormal.

Not only Bill Gates' expression at this moment, but everything that happened today had a strange quality to it.

It is difficult for a person's long-established habits and personality to change in a short period of time. Bill Gates is already middle-aged and is no longer the young man he once was, but at today's hearing, he gave the impression of being possessed by Ernst, which was not Bill Gates' style at all and was rather arrogant.

Furthermore, during the previous hearings, the cooperation between David Boyce and Bill Gates was so obvious that it was clear to anyone with eyes that there was some kind of unspoken understanding between them.

The two spoke so seamlessly, as if they had rehearsed it beforehand.

The fact that Microsoft's stock price rose against the trend during that period is the best proof of this.

And then there was the final, incredible twist: even Intel, an ally, betrayed them—this was completely illogical.

Even if Microsoft is broken up, it will still be the dominant player in personal operating systems. Intel's defection would not benefit it at all.

In retrospect, the announcement of this verdict and the decision to break up Microsoft also contained a hidden turning point.

A two-year separation seems reasonable, given Microsoft's massive size, global reach, over 5 employees, and hundreds of millions of customers; an immediate separation would be unrealistic.

But everyone knows that the longer it drags on, the better it will be for Microsoft.

At this point, Wenger demonstrated his professionalism: "According to the US judicial system, after Microsoft appeals the first-instance judgment, the case will go to the Federal Circuit Court of Appeals, a process that takes at least one year."

"If Microsoft is still not satisfied with the appeal result, it can continue to appeal to the Supreme Court. The whole process will take at least 3 to 5 years, and the first-instance judgment will be suspended during the appeal period."

"In other words, as long as Microsoft continues to appeal, this antitrust case will become a protracted battle that lasts for several years."

During this period, anything can happen. For example, one day in the future, the US government's industrial policy might change, or a big boss might grant Microsoft a special pardon.

Having figured all this out, there's only one possibility left: Wall Street.

"Aren't they afraid that Microsoft's influence will cause the entire technology and internet industry to collapse?" Wenger didn't expect Wall Street to play such a risky game.

"The stock prices of semiconductor and technology companies such as Cisco, IBM, Intel, and Oracle are all falling. If this trend is allowed to continue, it could trigger systemic risks in the technology sector. Has Wall Street lost all rationality?"

"Rational? No, they only pursue profit." Ernst suddenly laughed, his laughter laced with sarcasm. "These Wall Street hyenas always love walking a tightrope. For them, as long as they can maximize their profits, even if there's only a sliver of a chance, they'll never choose the safe path."

He stood up, walked to the floor-to-ceiling window, looked at the lawn outside the mansion, and his expression gradually became serious. "And don't forget, Google is about to go public."

The three of them were stunned for a moment, then they all came to their senses.

They focused all their attention on Microsoft and forgot about this.

Suppressing the internet sector now not only allows short sellers to profit handsomely from the short position, but also triggers panic selling in the technology sector, shaking out a group of retail investors.

Most importantly, it's about buying at the bottom.

Whether it's already listed star tech companies like Microsoft, Cisco, and Dynamo Games, or Google, which is about to go public, their stock prices will be affected to varying degrees by this breakup turmoil.

Wall Street capital can take advantage of this opportunity to acquire large quantities of these companies' stock at low prices.

Once Wall Street buys up these companies' stocks at rock-bottom prices, an even more explosive surge will follow.

On television, the scene has shifted off-screen, where David Boyce is giving a confident interview to the media.

Today he has become famous overnight, and it is estimated that his image will be featured in news pages all over the world.

Facing reporters, he continued to speak eloquently, detailing Microsoft's monopolistic practices and the severity of their consequences: "Through bundling and malicious competition with Google, Microsoft stifled Netscape, used its Windows monopoly to suppress Java, and signed exclusive agreements to restrict competition. Microsoft's actions hindered innovation and harmed consumer interests; breaking it up is a necessary means to restore market competition."

A reporter from The New York Times squeezed to the front and asked loudly, "Many consumers are worried that after Microsoft is broken up, there will be compatibility issues with the operating systems and software of personal computers, and will using computers become more troublesome in the future?"

Upon hearing this question, David Boyce laughed, turned slightly to the camera, and made a reassuring gesture. "Such worries are completely unnecessary. Breaking up Microsoft is like opening a window in a closed room; fresh air will keep flowing in, and more technology companies will enter the fields of operating systems and office software, launching more innovative products that better meet consumer needs."

Monopolists may win for a time, but competition and innovation will ultimately prevail.

Seeing David Boyce's smug expression on the screen, Ernst suddenly let out a cold snort, his tone clearly disdainful. "Do you think this David Boyce will ultimately become a pawn discarded by Wall Street?"

In his view, David Boyce is now a complete idiot. If Microsoft were to raise the price of the Windows operating system from $199 to $249, the annual fee for the Office software from $399 to $499, or even change the previously free bundled SQL Server database to a paid model, he would be wrong.

Consumers will then find that the cost of using computers has suddenly increased, and the culprit behind all of this is David Boyce, who pushed for the breakup of Microsoft.

Public opinion will immediately reverse. The media that are now praising him as a hero will start criticizing him for disregarding consumer interests; consumers who originally supported the split ruling will become dissatisfied with him due to the increased costs.

David Boyce will go from being the center of attention to being condemned by everyone as a sinner.

At that time, he will become a stepping stone for Microsoft's victory and be completely abandoned in the corner of history.

Can monopolies be broken?

In 1911, the U.S. Supreme Court ruled to break up Standard Oil Company, splitting it into 34 independent companies.

But the result?

Through its shareholding in these companies, the Rockefeller family still controls the pricing power of the global oil market, and the increase in the number of companies has actually expanded its market influence.

In 1984, the U.S. government broke up AT&T, but the entire American telecommunications industry remained in Bell's hands.

The breakup only involves dismantling the company's shell, not the shareholders and capital behind it.

As long as a product cannot be replaced in a short period of time, it is always the consumers who suffer.

When these consumers realize that their interests have been harmed, that's another matter entirely.

It's like buying a house. When the real estate market is booming, you see those real estate bosses keeping celebrities and having mistresses, with their airplanes and yachts, making you envious. You wish they would go bankrupt immediately and be arrested.

But when the other party really falls on hard times, it's because of the overall economic environment, and homebuyers wish those real estate company owners could return to their former extravagant lifestyles.

The drop in room temperature affected them.

This is the current situation at Microsoft.

"But the outcome on site is good too," Ernst said with a smile. "With Microsoft currently preoccupied, it gives us a good opportunity to develop."

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