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Microsoft Antitrust

The Microsoft Antitrust Case Essay submitted by Anonymous

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 W!

indows, they are only improving its overall functionality available to the customer. Microsoft began expanding into the browser area because of increasing threat from Netscape and Java. Java is the


Windows preinstalled on their new systems, that the Windows Internet Explorer must also be installed. Although it is possible for consumers to install other browsers onto Windows and use them, critics say that Microsoft still has an unfair advantage. It also keeps other browser companies from being able to consult with PC manufacturers to put their browser on the PC from the beginning. PC manufacturers did not hesitate to comply with Microsoft's new standard because they did not want to lose the ability to manufacture computers with Windows installed on them, as Windows holds a great market share and most consumers only buy PC's with Windows already installed on them. It would be detrimental for a company to refuse compliance of Microsoft's new standard. This is another complaint of critics. That manufacturers had no other choice but to do what Microsoft said, out of fear of their own company losing profits. Microsoft also "pulls the strings" it has with other ISP's and softw!

n again hold its position in the browser market. 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 deemed illegal and his practic

Some common words found in the essay are:
According Act, Internet Explorer, Specifically Department, Microsoft Microsoft, Microsoft Microsoft's, PC's Windows, Carnegie Steel, Microsoft ISP's, AT&T Quicken, Windows Windows, monopoly power, pc manufacturers, internet explorer, web pages, microsoft monopoly power, operating system, unfair advantage, microsoft's standard, comply microsoft's, microsoft's monopoly, microsoft monopoly,
Approximate Word count = 1120
Approximate Pages = 4 (250 words per page double spaced)


  

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