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"Even today, MS is perfectly free to make deals with competitors without worrying about antitrust scrutiny (and, in fact, deals were a part of the settlement between MS and Apple over certain antitrust matters)"

False, Microsoft can't take a figurative piss without someone saying they are fucking everyone else over.

Google and Yahoo make up around like 90% of the search business, if they join, how the hell would that not be monopolistic?