.

Friday, December 20, 2019

The Antitrust Case Against Microsoft Essay - 1873 Words

The U.S. government charged that Microsoft had violated antitrust law. Microsoft disagreed. Do you agree with the U.S. government, or with Microsoft? In answering this question, you may wish to address two issues. Was Microsoft a monopoly? Did it use its monopoly to compete unfairly against other companies? Commencing in 1990, Microsoft was investigated and then charged with violation of the Sherman Antitrust Act which governs United States businesses. The company was determined to be a monopoly, and one which used anti-competitive practices to keep its leading edge on the market. As would most any organization on the receiving end of the allegations, Microsoft did not agree with the charges and sought to defend its business†¦show more content†¦First, Microsoft ‘encouraged’ Compaq, Apple, and other computer manufacturers to promote only Internet Explorer, and to make that the default browser on their PC. This encouragement came in the way of threats to eliminate or delay licensing of operating systems, providing the browser for free to internet access providers, and bundling the software with the operating system under the guise of interactive ease for the consumer. This manipulation led to an increase in the browser’s sales by 45 to 50%, which paralleled t he decline Netscape experienced in their market sales in 1998.6 Microsoft’s defense included a deposition of the company’s Chairman, Bill Gates, during which he appeared to be argumentative, evasive, and unresponsive. Evidence provided on behalf of the organization included videotapes of ways in which the company had supposedly eliminated the technical glitches that prevented users from deleting Internet Explorer and loading Netscape’s Navigator instead. These tapes were questioned and scrutinized by the government and found to be â€Å"inaccurate†.7 It seemed to me that the information the company brought forth as its defense was questionable and excusatory, rather than defensible and explanatory. Examine the various remedies possible in this case. In light of the strength of the various parties’ positions in the case, what remedy would you advocate, and why? The case againstShow MoreRelated The Microsoft Anti-Trust Case: Presidential Candidate Recommendations1545 Words   |  7 PagesThe Microsoft Anti-Trust Case: Presidential Candidate Recommendations The Microsoft Antitrust Case is essentially the clash of two separate ideals, the key issue being how much influence the government should have in the marketplace. According to the U.S. Justice Department, Microsoft is in violation of the Sherman Antitrust Act of 1890, which states: â€Å"Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolizeRead MoreBill Gates and Microsoft1662 Words   |  7 PagesBill Gates and Microsoft â€Å"Microsoft was founded based on my vision of a personal computer on every desk and in every home, all running Microsoft software,† Bill Gates once remarked (Stevenson). Everyone has their own dream but this was Bill Gates dream when he first co-founded Microsoft. This dream came to haunt him 12 years later when he was caught. Microsoft was charged with using its power to eliminate its competitor in the Web-browser market in the mid-90s (Stevenson). Bill Gates’ dreamsRead MoreEssay on Microsoft vs. The Government: A Mandate for Compromise1586 Words   |  7 PagesMicrosoft vs. The Government Although somewhat ironic, by now it is not surprising when the pioneer of an enormous industry becomes the focus of controversy. Such is the case for Microsoft Corp., which is currently undergoing many accusations of breaking antitrust laws. Some would argue that the corporation is making deliberate efforts to monopolize the software industry, while those naturally in favor of big business would encourage Microsoft’s â€Å"survival of the fittest† businessRead MoreCompetition Is The Cornerstone Of Capitalism1499 Words   |  6 PagesPresident Theodore Roosevelt to launch his famous trust busting campaigns. The era of antitrust legislation comes from the Sherman Act of 1890. The Antitrust laws were based on the constitutional power of Congress to control and limit American business. The Sherman Act makes monopolization illegal. One of the most famously known companies to fall victim to Antitrust laws in modern history was Standard Oil in 1911. This case se t precedents for future conglomerates by acknowledging their monopolistic tacticsRead MoreMicrosoft: An Examination of Monopolies1023 Words   |  4 Pagesï » ¿Microsoft: An Examination of Monopolies Introduction This paper examines the nature of monopolies and the anti-trust policies developed by the government to discourage them. It specifically considers Microsoft and the case brought against it by the Federal government to prevent its becoming a software monopoly. In many cases, the government is justified in pursuing such anti-monopoly policies to protect competition and by extension the consumer. There are some instances, however, when allowingRead MoreCase Study of Bill Gates1348 Words   |  6 PagesMGMT 368 CASE ANALYSIS EXAMPLE C THE CASE OF BILL GATES MGMT 368B BUSINESS ETHICS PROBLEM ISSUE AND IDENTIFICATION WHAT ARE THE CENTRAL FACTS OF THE CASE? *William ‘Bill Gates III, Microsoft Corp Chairman, is the most wealthiest businessman there is (http://www.reviewjournal.com/1vrg_home/1997/Apr-02-Wed-1997/news/5134242.html). *Microsoft does not pay its workers as well as some competitors do; however, many workers get stock options. As a result, the worth of these stock optionsRead MoreThe Microsoft Antitrust Case Essay1365 Words   |  6 PagesThe Microsoft Antitrust Case The Microsoft Antitrust Case In 1998 the Microsoft Corporation was at the center of an investigation by the U.S. Department of Justice (DOJ) which alleged the company of violating the Sherman Act. The Sherman Act is considered the foundation of federal antitrust litigation, and is used to â€Å"combat anticompetitive practices, reduce market domination by individual corporations, and preserve unfettered competition as the rule of trade† (www.law.cornell.edu). The DOJRead MoreEthics And Ethical Business Practices1495 Words   |  6 Pagesadhere to ethically business practices, it can cause major issues for a company. This happened to Microsoft when it was confronted for violating several antitrust laws. The concern was that Microsoft was creating a monopoly, particularly within in the internet browser industry. The result was that Microsoft was sued for unethical business practices. Today ethics are an integral to the standards Microsoft sets for their employees as stated in a letter from Microsoftâ⠂¬â„¢s Chief Executive Officer Satya NedallaRead MoreStrategy for Competing with Microsoft: Fight or Flight?978 Words   |  4 PagesSubmission: 14/08/2013 Case 2.1: Strategy for Competing with Microsoft: Fight or Flight? Question-1: Was it ethical for Microsoft to force users of its Windows operating system to use its internet browsers as well by bundling the programs together and preventing PC manufacturers from making other software available to computer buyers? Was Microsoft’s behavior toward its rivals ethical? Why or why not? Answer: By bundling its internet browser and other programs together Microsoft was forcing itsRead MoreCase Overview: United States vs. Microsoft843 Words   |  3 Pagesï » ¿United States vs. Microsoft US Department of Justice alleged that Microsoft abused monopoly power when it bundled its Internet Explorer Browser with its Windows Operating System Case Overview Monopolies are defined by having extremely limited or no competition, high barriers to entry, and a significant amount of control over the marketplace. One common example of a company that is viewed as potentially monopolistic is Microsoft. Microsoft is the provider of the most popular operating system

No comments:

Post a Comment