United States vs Microsoft Corporation, for Committing Monopolization

2047 Words 9 Pages
United States vs Microsoft Corporation, for Committing Monopolization
Written By: Blank
March/24/2014
Blank Lee

The federal case United States vs Microsoft Corporation (2001) was an anti-trust case tried in the U.S. District Court in which the U.S. government filed suit against Microsoft on May, 18, 1998 because they were concerned that the company was using the power of it enormous market share in the PC operating system market to exert undue influence on the market prices and competition. The government also alleged that Microsoft had engaged in anticompetitive conduct in violation of § 1 and § 2 of the Sherman Act. Although the investigation really began in 1993 when Microsoft’s marketing tactics had sparked the
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They also restricted the OEMs from removing and/or replacing IE with any other web browser as well as restricting the manufacturers from promoting or pre-installing another web browser. Microsoft was making these discriminating licensing deals in an effort to steal market share from the Netscape Navigator which was the dominant more popular web browser at the time. Microsoft viewed Netscape as one of their new competitors. Microsoft was threatened by the potential Netscape had of growing into a rival platform for applications to Microsoft’s Windows operating system and not necessarily by their Navigator web browser which had a dominant majority of market share at the time. Netscape could eventually provide and alternative user interface to This point becomes very clear when you examine the following quote in which Bill Gates the CEO of the company wrote that “Netscape's strategy is to make Windows and the Apple Macintosh operating system all but irrelevant by building the browser into a full featured operating system with information browsing. Over time Netscape will add memory management, file systems, security, scheduling, graphics and everything else in Windows that applications require” (Fisher, and Rubinfeld ). In July 1994, officials at the Department of Justice, on behalf of the United States, filed suit against Microsoft, charging the company with, among other things, unlawfully maintaining a monopoly in the operating system market

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