Posted by George Colony on October 1, 2010
If you're a typical CEO, you've probably had a few nights where you lay in bed pondering where all that money your company spends on technology goes. If you've studied your CIO's budget, you may have asked the question, "What are these software maintenance contracts, and why the hell are they so damn expensive?" Or you may have questioned why your company has to make large capital investments every four or five years to buy new switches for your global private network. In short, you may wonder if you're paying too much for technology and if your vendors are treating you fairly.
Now, is there a dirtier word in the CEO's world than "antitrust?" CEOs never like to be told what to do, and I'll include myself in that group. CEOs focus on increasing revenue and profit -- the big always want to be bigger, and they don't want the government or anyone else telling them they can't grow.
But if you look at history, antitrust has generated benefits for your company. Theodore Roosevelt is arguably the father of 20th century American capitalism, through his fight to reduce the power of concentrated monopolies, then called trusts. If your corporation is based in the US, it may have been founded under the protection of Roosevelt's antitrust umbrella. In 1969, the Nixon administration pressed forward with action against IBM, stimulating the company to unbundle software from hardware. This sparked the formation of a new market for independent software companies -- their products lie at the heart of your operation today. Ronald Reagan's administration used antitrust to break up the US phone monopoly AT&T, setting the stage for sharply lowered long-distance pricing for your company.