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Microsoft Antitrust Case

Since 1998, the Microsoft Corporation has been struggling with an antitrust case against the United States Justice Department. They are being charged with violating aspects of the Sherman Act. This act prohibits companies from using their size and power as a monopoly to expand their positions and take hold of new markets. It is not illegal for a company to be a monopoly, but it is illegal for the company to use their size as an advantage over other companies (Lohr article 1). I believe that the Microsoft Corporation is in violation of the Sherman Act and the United States government should take actions against the company to monitor their business transactions and prevent this from happening again. There are many examples of how the Microsoft Corporation used their size as an advantage over other companies to gain advantages in the software and computer market.

Compaq is one of the largest computer producers in the country. They are the largest customers of the Microsoft Corporation. They buy most of their software from them to load on their computers for sale. Compaq considered loading the Netscape Navigator program as default instead of the Microsoft Internet Explorer. Netscape is Microsof


Lohr, Steve. "Filing Offers a Way to find Microsoft Violated the Law." New York

Microsoft is accused of making an illegal offer to their main competition in the internet browser market, Netscape. Their offer was an attempt to divide the internet browser market. Microsoft offered Netscape information that would help them design a program that would run as smoothly as possible with the Windows program. In return for the information, Microsoft would invest in Netscape and take fifteen to twenty percent (Lohr and Markoff). Microsoft would also receive a spot on Netscape's board of directors and licensing privileges to licensing their new technology. All hardware and software must run smoothly with Windows because of its popularity in the market. The information that Microsoft supposedly offered Netscape would have been very useful to their software design. Netscape declined the offer from Microsoft. Microsoft denies claims that their objective was to stop Netscape from competing with them in the internet browser market (Lohr and Markoff). The justice department has a sworn testimony from Chris Jones, a Microsoft manager, admitting that Microsoft's intentions were to persuade Netscape from competing. Microsoft claims that Jones's testimony explains how they wanted to become partners with Netscape. They say that they wanted to divide the applications and design of the programs between the two companies, so the two could work together in the industry (Lohr and Markoff). If it is concluded that Microsoft's offer was illegal, they are in violation of the Sherman Act. These are each examples of how Microsoft used their power as a monopoly to expand their position. A neutral forty-eight page paper was written to describe some of the allegations against Microsoft as well as some information in their defense (Lohr article 3).

A controversy has arisen over Microsoft's Windows 98 program. Its release was delayed because the Microsoft Corporation wanted to include the Internet Explorer program as a feature. This delay has been a topic of discussion in the court case. The U.S. Justice Department says that Internet Explorer and Windows 98 are two separate programs and that Microsoft bundled them together to gain an advantage over their main competitor, Netscape. Microsoft says that the Internet Explorer program is only a feature of Windows 98, and that the two are not separate programs (Lohr article 2). By the two programs being put together, consumers are now not required to buy a separate internet browser. In January of 1997, an email exchange between two Microsoft executives suggests that the browser and the o

Some common words found in the essay are:
Internet Explorer, Sherman Act, Netscape Lohr, Microsoft Corporation, Markoff Microsoft, Microsoft Office, York Times, Markoff Windows, Jones Microsoft, Justice Department, internet browser, lohr article, york times, microsoft corporation, internet explorer, internet browser market, browser market, windows program, sherman act, lohr markoff, brinkley article, violation sherman act, brinkley article 1, york times 5, size advantage companies,
Approximate Word count = 1780
Approximate Pages = 7 (250 words per page double spaced)


  

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