Baby Bills

AAA

DEFINITION of 'Baby Bills'

A hypothetical nickname for the smaller companies that would have been formed if Microsoft had been broken up for violation of antitrust rules in 2000. Baby Bills stood a real chance of having actually been formed since the U.S. government did call for the company's breakup, but the decision was reversed the following year so Microsoft instead was permitted to keep operating as one company.

INVESTOPEDIA EXPLAINS 'Baby Bills'

The antitrust suit in question was brought against Microsoft in 1993 after an investigation of possible collusion between Microsoft and IBM hit a dead end. The Justice Department settled with Microsoft in 1994 after documents signed by the company force them to agree not to "squelch" competition by creating operating system dominance. In 1997, the Justice Department filed a complaint that Microsoft had violated the decree by demanding that Internet Explorer be bundled with PCs in order to get a Windows 95 license. After years of trials and appeals, they were finally able to come to an agreement in 2001.

RELATED TERMS
  1. Steve Ballmer

    A long-time key executive and chief executive officer of Microsoft ...
  2. Split-Up

    A corporate action in which a single company splits into two ...
  3. Bill And Melinda Gates

    Two out of the three co-chairs of the Bill and Melinda Gates ...
  4. Antitrust

    The antitrust laws apply to virtually all industries and to every ...
  5. Baby Bells

    A common nickname given to the U.S. regional telephone companies ...
  6. Monopoly

    A situation in which a single company or group owns all or nearly ...
RELATED FAQS
  1. Why was Microsoft subject to antitrust charges in 1998?

    On May 18, 1998, the Department of Justice filed antitrust charges against Microsoft (Nasdaq:MSFT ). The charges were brought ... Read Full Answer >>
Related Articles
  1. Bonds & Fixed Income

    What Are Corporate Actions?

    Be a savvy investor - learn how corporate actions affect you as a shareholder.
  2. Personal Finance

    Antitrust Defined

    Check out the history and reasons behind antitrust laws, as well as the arguments over them.
  3. Stock Analysis

    What Are Qualcomm’s Latest Tech Products?

    Qualcomm has a track record of solid execution, it delivers best-in-class products, and it has built strong relationships with key mobile device vendors.
  4. Stock Analysis

    How Can Broadcom Grow Its Connectivity Business?

    At a recent investor conference, Broadcom CEO Scott McGregor talked about the company's wireless connectivity business.
  5. Stock Analysis

    Does NVIDIA Have Revenue Opportunities With Tegra?

    Investors following NVIDIA know that one of the most buzzed-about parts of the company has been its Tegra mobile processors.
  6. Stock Analysis

    Will MannKind Finally Reach A Solid Ground?

    MannKind Corporation has been plagued by setbacks, but this year has turned into a pivotal one thanks to the launch of its long-awaited inhaled insulin. 
  7. Stock Analysis

    Is Baidu Fighting To Keep Its Leading Position?

    Baidu is still struggling to figure out how to make the most of the mobile revolution without sacrificing its leading position in the desktop business.
  8. Investing

    Sina Weibo and Twitter: What's The Difference?

    Sina Weibo is China's version of Twitter, but how do the Chinese Twitter and actual Twitter stack up against each other?
  9. Stock Analysis

    What’s The Highest Dividend-Paying Tech Stock?

    Technology stocks tended not to pay dividends, preferring to reinvest available capital back into their respective businesses to accelerate their growth.
  10. Investing

    Are These 2015's Most-Promising Small-Cap Stocks?

    At least one of these small-caps should spike in 2015.

You May Also Like

Hot Definitions
  1. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  2. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  3. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  4. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  5. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  6. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
Trading Center