If Microsoft were to split into two companies, what would happen to the economy?

Jai Ho: If Microsoft were to split into two companies, what would happen to the economy?
This is regarding US v. Microsoft.
The court ordered Microsoft to split in to two companies (one for Windows, one for applications)
How will this affect the economy as a whole, Microsoft, consumers, the foreign market, and the competition (Apple, Linux,etc)?
Is it optimal for the economy?
What should be the limit of government intervention?

Answers and Views:

Answer by Matthew L
This will mean that Microsoft won’t be able to consolidate costs between the two companies, and thus cost of their products will likely go up. As a result competing products will likely go up in price, as they won’t need to compete with Microsoft at the some cost. Microsoft also won’t be able to bundle products into Windows, making competition easier in a way. It’s tough to say. I honestly don’t think it’s a great idea by the government…

We shall see I guess…

Answer by billys_office
Look at Standard Oil as an example
Standard Oil , which was the microsoft of the day,( the Rockefellers ) was split up
Mr. Rockefeller just laughed
He knew that the parts split apart into pieces were much more valuable than the single entity.
He was correct and not much later he was much more wealthy.
And we still have oil companies that act as one fairly giant monopoly – just look at gas prices and the pressures when alternatives to oil are to be developed

https://en.wikipedia.org/wiki/Standard_Oil_Co._of_New_Jersey_v._United_States

https://en.wikipedia.org/wiki/Standard_Oil

Answer by Glen D
No effect on economy, the company would have to do things differently though.