Microsoft Paper

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

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.

In more recent years, the Microsoft Corporation has repeatedly been accused of having a monopoly on the software market (Rise of monopolies 1996). Microsoft

Microsoft’s policy enables competition between PC producers resulting in lower prices. This also causes stratification of the PCs resulting in low-end, average, and luxury versions.

No matter who wins, the case almost certainly will be appealed, probably all the way to the Supreme Court. If the government wins at the trial court, it has already specified that it wants Microsoft to cancel contracts deemed exclusionary. In addition, the government wants Microsoft either to strip out its Internet browsing technology from Windows 98 or to include a rival browser made by Netscape Communications Corp. The government also indicated in October that, should it win, it would seek an additional hearing where it would suggest additional sanctions that should be placed

that Microsoft could bundle their web browser with its operating system but would also have to

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 This law is outdated, in accordance to the modern Microsoft situation, because in the past there wasn't technology as there is now.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,

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

In return, these companies must give preferential treatment in promotion and the like to Microsoft. One example is AOL's new 4.0 browser is specially designed to work best with the Microsoft Internet Explorer 4.0 browser. Much of the increase in AOL's clientele base can be attributed to the combined efforts of Microsoft and AOL. Microsoft is not only working with ISP's, but also with companies that build and maintain web pages and servers.

Microsoft announced to integrate the internet technologies on Windows 95 and Office 97 giving an impetus to the sales of these products and a portion of these revenues should be deferred into the future.

Microsoft has been fighting competitors in the Operating System fields as well as the Search field for many years. After Apple launched its new Macintosh computer, Microsoft came out with its first production of Windows which had a graphic user interface. Microsoft had 95% of all OS on individual PC’s in the 2000’s where apple only had about 2%-3% (Rivkin 2). A new venture that Microsoft was working toward was application software where the produced Microsoft Word and Excel. At first these two applications where not very popular on PC computers because WordPerfect and Lotus 1-2-3 where the main applications being run. Microsoft’s solution to this competition was

Microsoft operates in many geographic locations around the world and are behind the world’s most popular desktop operating system in the world. Microsoft is primarily a software company but have flexed their arms into internet services and are behind certain products in consumer market which is directly against Google. Microsoft’s market includes end-customers, enterprises and institutions just like Google. Some of the key Microsoft products are Bing which is a search engine just like Google.com and Microsoft ad center which is a direct

Looking at the sizable market share Microsoft has come to enjoy over the years, a new competitor would face a number of entry barriers before entering this market. Customers are very loyal to the Microsoft brand and would expect any competitor to offer at the very least the same features that Microsoft already has.

As Microsoft and the software industry grew, the computer hardware manufacturers no longer saw the opportunity to exploit Bill Gates= company, as they had done initially with BASIC, one of the first programs Microsoft

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.