Macro-Problems for Microsoft Essay

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Macro-Problems for Microsoft

Microsoft vs. the Government is an interesting case that affects both the way we look at and use the free market. It affects many people, including the individuals high up in government, the employees of software companies, and, of course, the consumer who buys software products. The key issue affecting these people is whether or not Microsoft, the largest operating system provider who has a monopoly on the operating system software market, uses its monopoly to suppress the other competing software companies. This use of a monopoly would be in direct violation of the Sherman act, which was set up to stop this kind of action.

All of the aforementioned groups have a very large
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While some truth may rest in Microsoft’s claim, the existence of the antitrust laws allows and requires that the Government interfere with the free-market. It is not the Government that Microsoft should be targeting, but it is the amendment or eradication of the antitrust laws that Microsoft should pursue.

The antitrust laws exist to, among other objectives, keep the market competitive. A competitive market results in lower prices for consumers, better products and new innovations. The effect of alternative policies on new innovations remains controversial. According to Michael S. Berliner, an executive director from Microsoft, “…Unlike the kings of the past and governments present, Microsoft has acquired its wealth, not by confiscation but by production – by creating products that other people want to purchase” (Antitrust Assault on Microsoft is Immoral ). But question remains as to how innovative Microsoft is. The Le Monte Diplomatique says:

It (Microsoft) purchased MS-DOS, the PC’s first operating system, from another firm. The graphic user interface Windows was based on the Apple Machintosh, which Apple itself

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