Sure, I understand that it can happen... but at the end of the day who is the one still standing. Microsoft gets fined, the investors who stuck through the bankruptcy get paid... but the competitor is DEAD.

Is it more expensive then buying a company... most likely, but it stops the entire market space moving forward. Microsoft knew they were violating anti-trust with the browser but they still did it. In doing so they delayed any move towards the "Networked computer" model that everyone was saying was the future.

To protect the crown jewels (windows + office) I am pretty sure Microsoft will sacrifice it all to maintain that monopoly. Like Nero in Rome, they will let it burn.