The Microsoft Antitrust Case
The case against Microsoft was brought buy the U.S. Department of Justice, as well as several state Attorneys General. Microsoft is accused of using and maintaining monopoly power to gain an unfair advantage in the market. The case has been under observation for a long time, but the Justice department is having trouble coming up with substantial evidence against Microsoft. Specifically, the Department must prove:
That Microsoft has monopoly power and is using it to gain unfair leverage in the market.
And that Microsoft has maintained this monopoly power through “exclusionary” or “predatory” acts(Rule).
Some say that Microsoft is only taking advantage of its position in the market and using innovative marketing strategies to attract new customers. They have chosen to implement a market development strategy to attract new customers who are looking for a system that has Internet capability. Microsoft feels that by integrating their Internet Explorer web browser technology into Windows, they are only improving its overall functionality available to the customer.
Microsoft began expanding into the browser area because of increasing threat from Netscape and Java. Java is the programming language used to make Netscape. Programs that are written in Java can work on any PC, whether it has Windows on it or not. That is why there is a great threat to the Windows environment. The more Netscape is used, the more other vendors will begin writing Netscape compliant programs and the more Java will be used, which puts a damper on Windows. So Windows introduced their Internet explorer to combat the increasing Netscape usage. It did not do this to create a monopoly, but to protect itself. If people realize that Java programs can be run on ANY PC, then they will realize that they do not need to buy Windows.
Some say that Microsoft began it’s “illegal” agenda when it began requiring PC manufacturers to sign a license agreement that said that if they were going to have Windows preinstalled on their new systems, that the Windows Internet Explorer must also be installed. Although it is possible for consumers to install other browsers onto Windows and use them, critics say that Microsoft still has an unfair advantage. It also keeps other browser companies from being able to consult with PC manufacturers to put their browser on the PC from the beginning. PC manufacturers did not hesitate to comply with Microsoft’s new standard because they did not want to lose the ability to manufacture computers with Windows installed on them, as Windows holds a great market share and most consumers only buy PC’s with Windows already installed on them. It would be detrimental for a company to refuse compliance of Microsoft’s new standard. This is another complaint of critics. That manufacturers had no other choice but to do what Microsoft said, out of fear of their own company losing profits.
Microsoft also “pulls the strings” it has with other ISP’s and software companies. There is a lot of software that is not made by Microsoft that comes with the Windows package. Some of these include, AOL, Prodigy, AT&T, Quicken, just to name a few. Microsoft gives these companies and their icons and programs are displayed on the Windows desktop. In return, these companies must give preferential treatment in promotion and the like to Microsoft. One example is AOL’s new 4.0 browser is specially designed to work best with the Microsoft Internet Explorer 4.0 browser. Much of the increase in AOL’s clientele base can be attributed to the combined efforts of Microsoft and AOL.
Microsoft is not only working with ISP’s, but also with companies that build and maintain web pages and servers. Microsoft also gives them preferential treatment through Windows and in return, they make their web pages to be compliant with the Microsoft browser. Most web pages even have a little disclaimer that says, “Best viewed with Microsoft IE4.0”. In this way, Microsoft can again hold its position in the browser market.
When Netscape refused to bow before Microsoft, Microsoft decided to do everything in their power to limit the amount of resources that Netscape could access. Their methods were often compared to those of Andrew Carnegie’s, of Carnegie Steel, in the early 1900’s. When a competitor would come into town, he would lower his prices way below cost to drive the competitor out of business. He could afford to do this because he already had the established capital to sustain him. He would just dip into reserves of cash for the time being, and the lowering of prices would not put him out of business. This was deemed illegal and his practice is one of the main reasons that the Sherman Antitrust Act was enacted. According to the Act, no company can engage in monopolistic activities intentionally. If they lowered their prices temporarily to drive out competition, while depending on their cash reserves to hold them over, this would be illegal. But, if they do not lower the price of their products below cost, then their strategy is just a form of true competition. Microsoft appears to have followed the latter practice. Microsoft began by giving away products that were identical to what Netscape was selling. While this would be illegal if Microsoft’s expense on these products was great, it is not, because software production cost is virtually next to nothing. So for Microsoft to offer software for free is not illegal.
Though fierce competition does promote technological innovation, Microsoft does use its monopoly power to establish its dominance in the browser world. Microsoft uses its strong position with the Windows operating system to “force” PC manufacturers and software companies to comply with Microsoft’s standards. Almost every software company has some connection to Microsoft. Microsoft uses these connections to make sure that no other competitors will succeed. Microsoft has countless connections with numerous ISP’s, software companies, server companies, and just about any other company that has something to do with a computer. Microsoft knows that it has the dominant operating system on the market right now and every software company, ISP, etc, wants to be part of it. If they are not, then they are likely to go under. The more and more companies that join Microsoft, the more and more Microsoft’s monopoly power will grow. Pretty soon, Microsoft will own 100% of the market not only in browsers, but I believe in many other areas, such as software production and distribution and even what kind of computer, its hardware, etc, that can run Windows. I do not believe that Microsoft’s monopoly agenda solely contains their “browser war”, but that it extends to a much higher scale.
40c
Web Sites:
mindspring/~dmataconis/microsoft.htm#Case Resources
mindspring/~dmataconis/sherman.txt
cnn/US/9805/18/federalplaint/
Другие работы по теме:
Microsoft A Monopoly Essay Research Paper Microsoft
Microsoft A Monopoly Essay, Research Paper Microsoft a Monopoly? The potential breakup of the Microsoft Corporation is presently one of the most consuming issues in our society. The government has declared Microsoft a monopoly, and could possibly be broken up into three pieces. This has come as a shock to most everyone, because ?Microsoft Windows? is usually the first thing that pops up on almost everyone?s computer when you first turn it on.
Microsoft X Essay Research Paper Microsoft XBoxThe
Microsoft X Essay, Research Paper Microsoft X-Box The Microsoft Corporation has changed the way we look at computers, but can they change anything else? Of course they can. Microsoft has expanded into the gaming world outside of the PC. They are now in competition with Nintendo, Sega, and other major gaming corporations.
Microsoft Essay Research Paper Microsoft has had
Microsoft Essay, Research Paper Microsoft has had a couple of though months since July last year, when Judge Thomas Jackson ordered the company to break up in two. However, since the beginning of this year things have just looked better for Microsoft.
Microsoft Essay Research Paper By running the
Microsoft Essay, Research Paper By running the Internet Microsoft could set up any programs that they wanted to. Also the software buyer would have to sue it because his system (computer) would only be
Multi Strand Science Essay Research Paper NAME
Multi Strand Science Essay, Research Paper NAME: DUE DATE: YEAR 12 MULTI-STRAND SCIENCE Choose ONE of the following local industries and prepare a resource management case study for that industry.
The Computer Age Essay Research Paper Ben
The Computer Age Essay, Research Paper Ben Purdue 8/24/01 It is my prediction that the biggest issue we will face in the coming century not only as a nation but also as a planet is finding a blind between security of protected information and freedom of information. I say this because as a computer security consultant I understand the need for security of important information, however I as a programmer I understand such issues as the battle for open source code and freedom of information as a hole.
Spread Of Computers Essay Research Paper Let
Spread Of Computers Essay, Research Paper Let’s face it, in today’s world we are using computers more and more. The growth of accessibility to the Internet has given us a brand new definition to
MicrisoftA Modern Monopoly Essay Research Paper Many
Micrisoft-A Modern Monopoly Essay, Research Paper Many have asked the question of whether Microsoft has turned into a monopoly of the high technology and software industry. This question is an easy one to answer, yes it is. Over the years, Microsoft has used its wealth and influence over the software industry to pull away from the competition by threatening competitors of withdrawing contracts and software deals.
Neuromancer Essay Research Paper The case against
Neuromancer Essay, Research Paper The case against Microsoft is based not just on bad economics, but on a fundamental misunderstanding of government’s decision-making role when it comes to market operations. This misunderstanding has led to an attack on one of the US?s most successful firms.
Antitrust Act Essay Research Paper Antitrust Acts
Antitrust Act Essay, Research Paper Anti-trust Acts in the Information Age As many people have noticed, recently there has been a huge focus in the media on Bill Gates, and his huge Microsoft Corporation. This past Friday, May 22, 1998, a federal judge combined two lawsuits and set a trial date for September 8, 1998.
Database Design Essay Research Paper Before you
Database Design Essay, Research Paper Before you use Microsoft Access to actually build the tables, forms, and other objects that will make up your database, it is important to take time to design your database. A good database design is the keystone to creating a database that foes what you want it to do effectively, accurately, and efficiently.
Microsoft Essay Research Paper
- Legal_Issues – Microsoft and mediation negotiations - Microsoft and mediation negotiations By: Steve Since its antitrust trial began in 1998, the software giant
Government Defined Essay Research Paper The economic
Government Defined Essay, Research Paper The economic system of the United States is modeled after the theory of capitalism. Capitalism supports free enterprise – private business operating without government regulation (Janada 22). The United States does regulate private business. Sometimes special circumstances arise which threaten to weaken the overall economic stability of the country.
William Wordsworth Essay Research Paper Wordsworths Way
William Wordsworth Essay, Research Paper Wordsworth?s Way of Explaining His Past ?William Wordsworth, English poet, one of the post accomplished and influential of England?s romantic poets, whose theories and style created a new tradition in poetry ? ( Microsoft Encarta 1). Wordsworth began writing poetry when he was still in school, but it wasn?t until 1793 that any of his poems were published. ?Wordsworth?s political and intellectual sympathies underwent a transformation after 1800.
The Microsoft Antitrust Law Suit Essay Research
Paper Recently one of the biggest corporations in the United States, Microsoft had to face several ultimatums from the government. The case against Microsoft was brought by the U.S. Department of Justice, as well as several state Attorneys General. Microsoft is accused of using and maintaining monopoly power to gain an unfair advantage in software market.
Microsoft Antitrust Court Case Essay Research Paper
As this paper is written there is a landmark court case proceeding in Washington in front of a federal judge. This case involves the charging of the Microsoft Corporation for violating antitrust laws set up by the government to preserve market competition. A general overview of the accusations brought against Microsoft by the Justice Department was given by Hayes in the Scholastic Update article The U.S. versus Microsoft (1999).
Microsoft Antitrust Paper Essay Research Paper Viewed
Microsoft Antitrust Paper Essay, Research Paper Viewed together, three main facts indicate that Microsoft enjoys monopoly power. First, Microsoft’s share of the market for Intel-compatible Personal Computer (PC) operating systems is extremely large and stable. Second, Microsoft’s dominant market share is protected by a high barrier to entry.
Microsoft Essay Research Paper Microsoft the world
Microsoft Essay, Research Paper Microsoft, the world’s largest company by market value, is accused of acting monopolistic in the computer software industry. Microsoft provides for eighty percent of the computers used, operating system. The operating system is a basic program that loads or boots up your computer to make it perform.
Microsoft Monopoly Essay Research Paper By now
Microsoft Monopoly Essay, Research Paper By now everyone is familiar with the case U.S. vs. Microsoft. What is all this about? According to my two articles, Microsoft, the world’s leading software company, is being sued by the Justice Department joined by 19 states.
Microsoft Case Essay Research Paper There has
Microsoft Case Essay, Research Paper There has been a great deal of focus on anti-trust legislation of late, as it involves most famously, Microsoft. Through the media’s attention to this particular company and the conditions of legislature, we have come to hear a great deal more about anti-trust legislature.
Fairness Of Jurors Essay Research Paper MUST
Fairness Of Jurors Essay, Research Paper MUST A JUROR’S MIND BE EMPTY TO BE OPEN?This article is about a concept of choosing the 12 jurors. In any case, jurors always play important roles in the court since they are the people who will come up with a verdict. Because of this, people believe that when the jurors are chosen for a certain trial, they must be aware of that case and know what is going on in that case.
Microsoft Essay Research Paper Wednesday many government
Microsoft Essay, Research Paper Wednesday, many government sources confirmed that Justice Department lawyers have proposed splitting Microsoft Corp. as a remedy for the company’s allegedly anti-competitive behavior. The proposal was discussed over the weekend at a secret meeting of officials from the U.S. government and 19 states that have sued Microsoft.
Microsoft Antitrust Editorial Essay Research Paper Microsoft
Microsoft Antitrust Editorial Essay, Research Paper Microsoft: The Big Bully Stealing Your Lunch Money A monopoly, by definition, is a business or group that engages in unfair and often unethical business practices to control an industry and eliminate all competition that might lessen their profits.
Microsoft Anti Trust Case Essay Research Paper
Microsoft Anti-Trust Case In 1890, Congress passed the Sherman Anti-Trust Act. Since then there has been very few companies that have violated this act. In 1911 it was used it to break J.D.
Microsoft Antitrust Case Essay Research Paper Microsoft
Microsoft Antitrust Case Essay, Research Paper Microsoft Antitrust Case Since 1998, the Microsoft Corporation has been struggling with an antitrust case against the United States Justice Department. They are being charged with violating aspects of the Sherman Act. This act prohibits companies from using their size and power as a monopoly to expand their positions and take hold of new markets.
Buddhist Economics Essay Research Paper Buddhist EconomicsMost
Buddhist Economics Essay, Research Paper Buddhist Economics Most people think that religion and economics don?t mix. So you would think the same in the case with Buddhism and economics. But actually the there is a set of rules that go along with our modern day economics that have their own meanings. Buddhists believe that spiritual health and well being go hand in hand.
Hw Lab Essay Research Paper I TitlePopulation
Hw Lab Essay, Research Paper I. Title Population Genetics and Evolution: Hardy Weinberg Equation II. Hypothesis This lab is separated into four different cases. Within each of these cases, there are
Microsoft The Company Essay Research Paper Microsoft
Microsoft The Company Essay, Research Paper Microsoft: THE COMPANY The thought of forming a company which supplies its customers with software, was a great idea–especially coming from a college dropout. Bill Gates, along with high-school friend Paul Allen, formed a software company in 1975. From the beginning, Microsoft had a tremendous potential to become a very successful corporation.
Retail Trade Essay Research Paper Write a
Retail Trade Essay, Research Paper Write a structure-performance study of the retail trade industry Paper should include the ff structure 1 Introduction. In this section you give an overview of the industry, its size, growth over the past 10-20 yrs, its important to the economy and other significant factors. 1-2 pages
MS Power Point Essay Research Paper Reflection
MS Power Point Essay, Research Paper Reflection on MS Power Point The Microsoft Power Point presentation that we just completed was a fun project. I learned how to set up Power Point slides while infiltrating animation and sound.
Case Study Essay Research Paper Case Study
Case Study Essay, Research Paper Case Study : Media ups and downs Summary: The Australian made midday television program ?Day time with Amanda? first aired in 1993, showing good ratings and high advertising revenue during its early stages.