Compare And Contrast Microsoft And Sherman Act

Microsoft has their dominance of the industry at stake. They could potentially come out on top if left to continue their current tactics. They are masterfully “marketing their products” and it is paying off for them (Love, 1997).

United States vs. Microsoft is one the largest, most controversial antitrust lawsuits in American history. Many claim the government is wrongly punishing Microsoft for being innovative and successful, arguing that Windows dominates the market because of the product’s popularity, not because of malpractice by the parent company. Others argue in favor of the government, claiming that Microsoft’s practices conflict with the free market ideal. There are many arguments for both sides of the lawsuit, but what the case really comes down to is this: does the government have the right to interfere in today’s marketplace? Or is Microsoft violating laws that are rightfully imposed by the government?

Before 1890, a few companies completely dominated major industries. Stockholders’ trusts eliminated competition and created monopolies, which in turn hurt American consumers and the economy as a whole. However, this all changed in 1890 when Congress passed the Sherman Anti-Trust Act. It was the first regulation of American businesses, outlawing monopolies and trusts, which created a way for the government to control the economy. Congress should have passed the Sherman Anti-Trust Act because it protects consumer rights, controls the economy, and eliminates monopolistic business practices.

Born in 1823, John Sherman was going to change how the United States economy worked. His name is part of a very important act; the Sherman Antitrust Act. this disbanded all monopolized corporations and said price discrimination and interlocking doctorates are prohibited. Though this act was very crucial, many people took advantage. As a result of this another act had to be passed. A legislation that could strengthen the Sherman Act and take down all the trust. An act that could would not take the government time and money to trust bust the fraud businesses, but to take the responsibility of each individual in a business. Although pricing fixing and exclusive dealings were addressed in the Sherman Act, there needed to be another antitrust act to establish and extend the unfair business practices during the 19 century era.

As part of the "Final Judgement", Microsoft was prohibited from entering into agreements allowing them to fine OEM's for using

The Justice Department and the states contend that Microsoft is violating the Sherman Antitrust Act, which was passed by Congress in 1890. The act has two sections. Section I prohibits certain types of agreements that restrict the flow of trade. Section II prohibits the misuse of monopoly power, namely anti-competitive actions that seek to maintain that monopoly power and actions that attempt to use that monopoly power to dominate another market (2).

In 1907 a federal court ruled that American Tobacco had a monopoly on licorice, a flavoring, and that the company was guilty of violating the Sherman Antitrust Act. After a long trial, the court prohibited the company from enjoying interstate trade until conditions were corrected. It went through the U.S. Supreme Court, which decided on May 29, 1911 that the company had to be dissolved. On Nov. 16, 1911 the Supreme Court issued a decree that the company had to be divided into three major parts: American Tobacco, Liggett and Myers, and P. Lorillard. The control of R. J. Reynolds Tobacco Company of Winston-Salem was also relinquished. James B. Duke, a multimillionaire by then, retired from active management of the American companies and turned

Many companies and people have committed monopolies before they were illegal and even after it. A monopoly is when one person has complete control over a company and makes close to 100% of the profits but because of the The Sherman Antitrust Act passed on April 8, 1890, “combination in the form of trust and otherwise, conspiracy in restraint of trade.” In simple terms the act prohibited any forms of monopoly in business and marketing fields. Monopolies committed before the Act, making it legal in every way but unethical, by some of the famously known marketers like John D. Rockefeller making him filthy rich. While others committed after The Sherman Antitrust Act caused a company like Microsoft to be sued and have a bruised ego.

After a five-year investigation costing millions of dollars, the Antitrust Division found little that could be characterized as anti-competitive. But that did not stop the government. Not only did DOJ file an antitrust suit that caused Microsoft to cancel its planned

Commencing in 1990, Microsoft was investigated and then charged with violation of the Sherman Antitrust Act which governs United States businesses. The company was determined to be a monopoly, and one which used anti-competitive practices to keep its leading edge on the market. As would most any organization on the receiving end of the allegations, Microsoft did not agree with the charges and sought to defend its business

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

and quality high. I also think that some monopolies are beneficial to us. Microsoft for example,

As a result, there are overwhelming criticisms against Microsoft. People view Microsoft as an unethical business entity by creating “monopoly” and using unfair tactics to control the software market as a whole. Although it is important to realize that even Microsoft does not technically fit the definition of monopoly, there is no doubt that it processes tremendous power in the software industry. Along with this magical power, it could make influential decisions among governments’ rules and regulations in terms of intellectual property laws and foreign trade policies. Thus, we have to keep in mind that acting within the laws does not necessarily acting in an

A lot of people today, mostly microsofties, argue that Microsoft should not be split up since it isn 't really a monopoly; Windows has a lot of competitors out there and some of the companies that make them are even bigger than Microsoft. And that is actually quite true: Microsoft has only about 6% of the global software market and only 3% of the global computer market overall. There are several computer companies that make more than Microsoft, like Sun Microsystems and Compaq and there are at least nine other operating systems besides Windows, some of which you could even get for free.

The research presented in the paper was pulled from various websites and articles. Background information was pulled from Microsoft’s own website as well as a biography listed on the Forbes website. Various articles found throughout the web provided me with information on my three main topics. Those topics include: the innovation and technology Microsoft currently develops and maintains, the different laws and regulations within the United States as well as other countries that Microsoft is currently feeling pressure from, and the types of products and services they are introducing to stay competitive and relevant in today’s technological marketplace.