Microsoft: An Examination of Monopolies

1023 Words4 Pages
Microsoft: An Examination of Monopolies Introduction This paper examines the nature of monopolies and the anti-trust policies developed by the government to discourage them. It specifically considers Microsoft and the case brought against it by the Federal government to prevent its becoming a software monopoly. In many cases, the government is justified in pursuing such anti-monopoly policies to protect competition and by extension the consumer. There are some instances, however, when allowing certain monopolies ensures constant supply, efficient production, and consistent regulation of products vital to the public good. The Microsoft Anti-Trust Case In 1998, the U.S. Department of Justice filed suit against Microsoft, claiming that the software company was violating the Sherman Antitrust Act and the terms of a previous settlement by bundling its Internet Explorer browser application with its Windows operating system. The Sherman Anti-Trust Act was passed in 1890 in an effort to prevent monopolies that would threaten competition in the marketplace and would eventually lead to extortionary prices for consumers. The Act restricts companies from any practices that artificially create a monopoly by barring competitors from entering the market. The government's case against Microsoft rested on a particular definition of monopoly. Monopolies can occur in several ways. A pure monopoly, where only one company offers a product for which there are no viable substitutes,

More about Microsoft: An Examination of Monopolies

Open Document