This year, Microsoft (Nasdaq: MSFT) has fallen from $120 to $60 per share, and lost more than $312 billion of value. Management had to issue a motherlode of new stock options to retain key employees. And, the company is falling behind in Internet applications. Why? Because the Department of Justice came a-knockin'.

It's clear that Microsoft made mistakes. It stepped beyond the boundary lines of fair play. It pursued domination of the personal computer business at all costs. But, don't forget, it wasn't alone. IBM (NYSE: IBM) pursued domination before Microsoft. Intel (Nasdaq: INTC) and Cisco Systems (Nasdaq: CSCO) have done as much in their markets. General Electric has made a life out of feasting on competitors. It's the nature of a publicly owned company.

So, what's the takeaway? From here on out, I'm going to penalize a company for being valued in excess of $250 billion. To grow from there, it seems inevitable to me that a company must destroy competition in ways that will invite Department of Justice scrutiny.

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