Microsoft’s Antitrust Battle - 2503 Words

I. Introduction to Microsoft Microsoft Corporation was founded by William H. Gates III also known as Bill Gates and Paul G. Allen in 1975. Since their inception they have been credited for developing various operating systems to coordinate with the personal computer (PC). â€Å"Microsoft possesses a dominant, persistent, and increasing share of the world- wide market for Intel-compatible PC operating systems. Every year for the last decade, Microsoft s share of the market for Intel-compatible PC operating systems has stood above ninety percent. For the last couple of years the figure has been at least ninety-five percent, and analysts project that the share will climb even higher over the next few years (Justice).† Microsoft has also†¦show more content†¦Ã¢â‚¬Å"(â€Å"The Findings of Fact in the United States Microsoft antitrust case established that One of the ways Microsoft combats piracy is by advising OEMs that they will be charged a higher price for Windows unless they drastically limit t he number of PCs that they sell without an operating system pre-installed. In 1998, all major OEMs agreed to this restriction. This has been called the Windows tax or Microsoft tax) (Criticisms to Microsoft).† Another of Microsoft’s criticisms was stemmed from its deciding to market its software separate of the hardware it ran on by envoking a copyright to the software and licensing it in terms similar to music (Criticisms to Microsoft). Since investigations on Microsoft began the corporation realized it had a reputation to uphold as well as dispute the legal issues of antitrust violations. Microsoft’s main complaints of violation came from its competitors as being monopolistic. A monopoly â€Å"exists when a specific individual or enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it (Sherman Antitrust).† Though Microsoft settled the initial dispute with the FTC and DOJ there legal issues were far from over. There next legal accusation came from Apple Computer. Apple accused Microsoft’s CEO Bill Gates of threatening to stop the production of Apple compatible software ifShow MoreRelatedEssay about Browser Wars803 Words   |  4 Pagesto eventually open their source code. This allowed developers to grow the browser along with the company, further building the browsers functions. In order for Microsoft to continue to push its browser’s strategy it will need to resolve the antitrust cases currently placed against them. The current bundling of the Microsoft OS and internet browser provides a greater base of customers using the Microsoft browser. It was found that 80% of the personal computer market was running the MicrosoftRead MoreEssay on Microsoft Manages Legal and Ethical Issues1148 Words   |  5 Pagesgiant has been plagued by allegations of antitrust violations and monopolistic, non-competitive business practices. By answering the three questions posed in Part 5, Case 7 of Business Ethics: Ethical Decision Making and Cases; this review will address how such a legal and ethical dichotomy is possible, and how the issues relate to one another in terms of corporate reputation. 1. What unique aspects of the software industry created the opportunity for Microsofts monopoly and anti-competitive practicesRead MoreThe Microsoft Antitrust Case Essay1365 Words   |  6 PagesThe Microsoft Antitrust Case The Microsoft Antitrust Case In 1998 the Microsoft Corporation was at the center of an investigation by the U.S. Department of Justice (DOJ) which alleged the company of violating the Sherman Act. The Sherman Act is considered the foundation of federal antitrust litigation, and is used to â€Å"combat anticompetitive practices, reduce market domination by individual corporations, and preserve unfettered competition as the rule of trade† (www.law.cornell.edu). The DOJRead MoreMicrosoft and How Its a Monopoly Essay1686 Words   |  7 PagesMicrosoft and How Its a Monopoly Since 1990, a battle has raged in United States courts between the United States government and the Microsoft Corporation out of Redmond, Washington, headed by Bill Gates. What is at stake is money. The federal government maintains that Microsoft’s monopolistic practices are harmful to United States citizens, creating higher price and potentially downgrading software quality, and should therefore be stopped. While Microsoft and its supporter’sRead MoreBrowser Wars1282 Words   |  6 PagesNovember 20, 2012 Allyson Mabry Executive Summary Although Netscape had first mover advantage and a strong product; Microsoft was able to knock them out of the competition for Internet browser control. This was accomplished mainly by bundling Microsoft’s Internet browser, Internet Explorer, with its operating systems. Netscape was unable to compete and was ultimately purchased by America Online. AOL can now utilize several of the Netscape’s strengths to add value to their base product as an InternetRead MoreAnalyzing The Companies Microsoft And Apple Using The Swot Analysis917 Words   |  4 PagesUnited States Government claimed Microsoft violated the Sherman Antitrust Act by providing each new Microsoft customer with a free copy of their internet browser, Internet Explorer. The US Government accused Microsoft of creating a monopoly on the new Internet browser market, by not allowing other browsers a chance to reach new customers. (Brinkley 2000) In the final verdict it was ruled that Microsoft had violated the Sherm an Antitrust Act and was therefore ordered to separate into two different companies:Read MoreMicrosoft Offices Word Program1464 Words   |  6 Pageson November 20, 1985. This relationship naturally broke down as IBM did not appreciate being cheated. A few years later the FCC would investigate MS for collusion. This led to about a decade of legal battles between the federal government and Microsoft over serval issues. This kind of legal battle was not new in the United States as monopolies having too much power was an issue since the railroads in the 19th century and the industry giants in the 20th century with the industrial revolution. MicrosoftRead More Microsoft vs. The Government Essay examples1293 Words   |  6 Pagescompanies have been sold out by them or have gone bankrupt, Microsoft can take it easy in the development of its product and skyrocket prices. The consumer will be profoundly affected, both economically and technologically (Love, 1997). Antitrust laws have long been in place in this country, one reason is to benefit the consumer. The ability to choose which company an individual buys his or her products from forces competition among businesses. Companies strive to innovate and improve theirRead MoreMicrosoft Antitrust Lawsuit Project Essay2210 Words   |  9 Pagesother Microsoft product or not licensing or distributing any non-Microsoft products. The purpose of this condition was to prevent Microsofts use of such agreements to protect or extend its operating systems monopoly. Microsoft first came under serious government scrutiny in 1990, and was sued by the United States Government for violations of the Sherman Antitrust Act in early 1994. After a series of accusations and rebuttals, Microsoft entered into a consent agreement with the United States inRead MoreIs Microsoft a Monopoly?1167 Words   |  5 Pagesmonopolies are tolerated. There is reason to believe that Microsoft was trying to gain monopoly power, this is why they were investigated for anti-competitive activities. To regulate corporations, the federal and state governments put in place antitrust laws. These laws helped to keep companies from becoming to large to prevent monopolies and these laws encourage competition. Microsoft Corporation was investigated for breaking such laws, trying to monopolize and competed to be dominate the web