Essay about Microsoft Antitrust

17058 Words Mar 9th, 2013 69 Pages
The Microsoft Antitrust Case* by Nicholas Economides** Revised April 2, 2001 Abstract This paper analyzes the law and economics of United States v. Microsoft, a landmark case of antitrust intervention in network industries. The United States Department of Justice and 19 States sued Microsoft alleging (i) that it monopolized the market for operating systems of personal computers and took anti-competitive actions to illegally maintain its monopoly; (ii) that it attempted to monopolize the market for Internet browsers because such browsers would create competition for operating systems; (iii) that it bundled its browser (Internet Explorer) with Windows; and that it engaged in a number of other anti-competitive exclusionary arrangements with …show more content…
I am not a consultant of the United States Department of Justice, Microsoft, or any of the Attorneys General of the 19 States and the District of Columbia that are suing Microsoft. ** Stern School of Business, New York University, New York, NY 10012, and Stanford University, Stanford, CA 94305, (212) 998-0864, fax (212) 995-4218, http://www.stern.nyu.edu/networks/, neconomi@stern.nyu.edu

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Contents
1. 2. 3. 4. 5. 6. 7. Introduction............................................................................................................................................. 3 Markets With Network Effects ............................................................................................................... 7 The Allegations..................................................................................................................................... 10 Microsoft’s Defense.............................................................................................................................. 11 The Law ................................................................................................................................................ 11 The Judge’s “Findings Of Fact” And “Conclusions Of Law” .............................................................. 12 On

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