The Microsoft Antitrust Case
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 to attract new customers. They have chosen to implement a market development strategy to attract new customers who are looking for a system that has Internet capability. Microsoft feels that by integrating their Internet Explorer web browser technology into Windows, they are only improving its overall functionality available to the customer. Microsoft began expanding into the browser area because of increasing thre
Microsoft is not only working with ISP’s, but also with companies that build and maintain web pages and servers. Microsoft also gives them preferential treatment through Windows and in return, they make their web pages to be compliant with the Microsoft browser. Most web pages even have a little disclaimer that says, “Best viewed with Microsoft IE4.0”. In this way, Microsoft can again hold its position in the browser market. Microsoft also “pulls the strings” it has with other ISP’s and software companies. There is a lot of software that is not made by Microsoft that comes with the Windows package. Some of these include, AOL, Prodigy, AT&T, Quicken, just to name a few. Microsoft gives these companies and their icons and programs are displayed on the Windows desktop. 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. When Netscape refused to bow before Microsoft, Microsoft decided to do everything in their power to limit the amount of resources that Netscape could access. Their methods were often compared to those of Andrew Carnegie’s, of Carnegie Steel, in the early 1900’s. When a competitor would come into town, he would lower his prices way below cost to drive the competitor out of business. He could afford to do this because he already had the established capital to sustain him. He would just dip into reserves of cash for the time being, and the lowering of prices would not put him out of business. This was deem
Some common words found in the essay are:
According Act, Internet Explorer, Specifically Department, Microsoft Microsoft, PC’s Windows, Microsoft Microsoft’s, Carnegie Steel, Microsoft ISP’s, AT&T Quicken, Windows Windows, monopoly power, internet explorer, pc manufacturers, software companies, web pages, isp’s software companies, unfair advantage, microsoft’s standard, attract customers, software production, isp’s software, microsoft monopoly power,
Approximate Word count = 1210
Approximate Pages = 5 (250 words per page double spaced)
|