“I think you are going to see a repeat of Microsoft.” Christine Varney’s blunt assessment sent a buzz through the audience at the National Press Club in Washington, DC. Varney, a partner at Hogan & Hartson and one of the country’s foremost experts in online law, was speaking at the ninth annual conference of the American Antitrust Institute, a gathering of top monopoly attorneys and economists.
Larry Page should have been in a good mood. It was the fall of 2007, and Google’s cofounder was in the middle of a five-day tour of his company’s European operations in Zurich, London, Oxford, and Dublin. The trip had been fun, a chance to get a ground-floor look at Google’s ever-expanding empire.
When Google’s lawyers entered the smooth marble hallways of the Department of Justice on the morning of Oct. 17, they had reason to feel confident. Sure, they were about to face the antitrust division–an experience most companies dread–to defend a proposed deal with Yahoo. But they had to like their chances.
It was a late morning in the fall of 2006. Almost a year earlier, Steve Jobs had tasked about 200 of Apple’s top engineers with creating the iPhone. Yet here, in Apple’s boardroom, it was clear that the prototype was still a disaster. It wasn’t just buggy, it flat-out didn’t work. The phone dropped calls constantly, the battery stopped charging before it was full, data and applications routinely became corrupted and unusable. The list of problems seemed endless. At the end of the demo, Jobs fixed the dozen or so people in the room with a level stare and said, “We don’t have a product yet.”
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