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Microsoft Antitrust Lawsuit Project
This study is based upon charges brought by the U. ... Department of Justice in May, 1998, regarding Microsoft’s supposed violations of the Sherman Antitrust Act. The case claimed that Microsoft had violated the act in four ways:1
a. Microsoft had forced computer companies that used its Windows operating system to sign agreements that they would not license, distribute, or promote software products that competed with Microsoft’s own software products; 1
b. Microsoft “tied” its own browser, “Internet Explorer,” to its Windows operating system so that customers who purchased Windows also had to get Internet Explorer, although these were separate products and tying the two products together degraded the performance of Windows; 1
c. Microsoft had attempted to gain a monopoly in the Internet browser market by forcing computer companies that used its Windows operating system to agree to leave Internet Explorer as the default browser and to not preinstall or promote the browser of any other company; and1
d. Microsoft had a monopoly in the market for PC operating systems and had used anticompetitive and predatory tactics to maintain its monopoly power.
To begin looking at the charges an understanding of the antitrust acts must be gained. ... ”
According to the Department of Justice, Microsoft was guilty of using tying agreements made illegal via section 1 of the Sherman Act and section 3 of the Clayton Act. Microsoft violated this law according to the Department by packaging its product Internet Explorer with its operating system. ... Since Microsoft had a majority of the operating system market, this kept consumers from possibly looking at other companies like Netscape for an Internet Browser. ... Microsoft argued that since they were giving away the Internet Explorer software for free with the operating system that this did not constitute “tying”.
Approximate Word count = 1468
Approximate Pages = 5.9
(250 words per page double spaced)
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