I also wonder if their investment in Apple was at least in part motivated by them being investigated. There may be no Apple today without that.
In the end, I think Microsoft brought the demise of IE on themselves, because of how terrible it was. They couldn't undo that reputation, not even with Edge, which still feels clunky compared to FF or Chrome.
So this example is ambiguous w.r.t. hands-off vs. hands-on regulation at best.
Also, Gates's reputation took a big hit with his behavior during the Congress hearings.
All this together caused a lot of harm to MS's image which may not have happened without the DOJ and the EU going after them.
https://en.m.wikipedia.org/wiki/Apple_Computer,_Inc._v._Micr....
Windows CE was supposed to be where iOS and Android are in 2018. They blew that plain and simple.
I'm no iPhone fan, its overpriced and overhyped as a computing device IMO. But, the watershed moment that created today'd mass computing - was the invention of the iPhone. It just obliterated Palm and the WinCE alternatives of the time.