Microsoft Antitrust Paper

     Relatively speaking, Microsoft uses many of the same strategies for its promotions as Sony and Nintendo.

According to the Department of Justice, Microsoft used its resources and technology to drive other companies out of business, thereby eliminating the competition and creating a monopoly. Without competition, Microsoft was able to set prices and consumer conditions in a way that exceedingly benefited the company while ensuring a decreased amount of new competition because of the proprietary software installed in most PCs. (Competitive Processes, Anticompetitive Practices and Consumer Harm in the Software

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).

The company’s decision to defer revenues came at a time of significant growth in revenues—suggesting that the company’s decision to defer revenues was partially to dampen or “smooth” the company’s revenue growth. The company’s decision to defer revenue had the effect of reducing reported revenue growth from 88% to 64% in the first quarter of 1996 and increasing revenue growth from 4% to 15% in the first quarter of 1997. Even as reported the first quarter of 1997 represented the lowest quarterly revenue growth in the company’s history. While the timing of the company’s decision to defer revenues appears particularly opportune, the introduction of Windows 95 to the market provides a legitimate reason for the decision. As described in the case, the company expected to integrate its Internet technologies into both Windows 95 and Office 97 “at no additional cost to customers.” Arguably, then, sales of these products were improved by these

When people think buying a new computer, they will normally call to mind about the Microsoft, Microsoft operating system use on more than 90% computer in the world. Microsoft operating system is more users friendly. Microsoft operating system can compatible with more software compare to other competitor

Windows, a program that was created in 1983, but did not change the market significantly until 1990, has grown to control 94.1% of the operating system market (Newman). This has required other companies in the software industry to make all of their applications Windows compatible. Critics claim that Microsoft systematically eliminated all competition of other operating systems and software manufacturers. Microsoft also controls a large part of the software industry. According to sales from April 2002, Microsoft sold 89% of office software to consumers (Washington Post). Microsoft bundles these applications with the Windows operating system, which is, according to them, an effective technique. Critics assert that this forces other makers of office software, like Corel, to lose business, because consumers will not buy another application if one is already pre-installed. Critics point to the proposed 1995 merger between Microsoft and Inuit which ultimately failed. Inuit is the maker of the best-selling money management

On July 15, 1994, the United States sued Microsoft for unlawfully maintaining its monopoly in the market for PC operating system software. The lawsuit alleged that Microsoft engaged in anti-competitive marketing practices directed at PC manufacturers that distributed Microsoft operating system software preinstalled on its PCs. Microsoft began to levy fines against original equipment manufacturing (OEM) companies who distributed or promoted operating systems other than Microsoft. On August 21, 1995, Microsoft "consented" to a "Final Judgement" against them.

Microsoft has grown into an enormous and powerful corporation by a combination of aggressive business practices and having written operating systems (DOS and Windows) for personal computers. From operating systems it branched out into other software which has, along with the operating system, become something of an industry standard.

America's century-old antitrust law is increasingly irrelevant to our current worldwide information technology market. This law is outdated, in accordance to the modern Microsoft situation, because in the past there wasn't technology as there is now. Recently the government has been accusing Microsoft as being a monopoly. "Techno-Optimists" claim that "efforts by government to promote competition by restraining high-tech firms that acquire market power will only stifle competition." Some analysts disagree. They concede that dynamic technology makes it tough to sustain market power. Still, consumers will want compatible equipment, which will lead them to buy whatever product other consumers are using,

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

The Sherman Antitrust act of 1890, along with other laws passed by congress, was put in place to regulate companies from engaging in anticompetitive practices. However, in 1998 Microsoft was the subject of an investigation initiated by the Justice department. In their charges the Department of Justice accused Microsoft of engaging in monopolistic activity. The purpose of my report is to examine what led to the investigation. Furthermore, I will explain the judgment in the case. Finally, I will analyze the present state of Microsoft. In order to understand this subject I will explain the current laws against monopolies in the United States. Then I will describe the events of the investigation and judgment of Microsoft.

The purpose of antitrust laws is to both promote and protect competition. They aren’t designed to go after big companies simply because they are bigger or more successful than others in their industry. They aren’t anti-market or anti-business. They are intended to be just the opposite, in fact. They are meant to promote successful market economics through the assurance of healthy competition while keeping abuses of the system in check that could overrun the market.

The PCs became a commodity. Microsoft grew to be the leader in the operating system market continuing to develop their Windows GUI line. With Windows, software standards have been established allowing software developers to certify their products to meet Windows requirements and deliver controlled performance. In addition, the PCs allowed numerous hardware manufacturers to

Based on these numbers one can assume that consumer demand was initially exceeded by Windows 95. However, Microsoft headed by Bill Gates was not satisfied and they had experienced success and they wanted a lot more of it. One man, also in the computer industry, had some say in this pursuit of ultimate success. This man, Steve Jobs, was the mastermind of the computer giant Apple. Both had no intention of giving in and losing the industry race. Many people picked their side of the battle by choosing what computer they enjoyed more and were unbelievably loyal to that side throughout the generations. Loyalty ran so deep people started to trash talk about the other side like Vic Sussman, an American newspaper and radio journalist. She