Government Regulation of the Microsoft Corporation

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Government Regulation of the Microsoft Corporation

Does the government have the right to regulate large corporations, namely the Microsoft Corporation? If so, then to what extent can the government do so? Based on our research, it is the government’s responsibility to remedy Microsoft’s noncompetitive behavior in order to increase fair competition.

The Microsoft vs. the Government trial has many possible outcomes, which may affect a specific party. Not only does the outcome affect the Microsoft Corporation, but it also affects the rival companies and the consumer. Though not as eminent, the outcomes may also affect the future decisions against any other companies, possibly committing the same violations as Microsoft.

The Sherman Act was the first law that allowed the federal government to regulate interstate commerce. Sections 1 and 2 define a monopoly or trust power and recommend appropriate punishments including jail time, fines, and considers such infringement to be felonies (Encyclopedia.com). In 1999 and early 2002 The DC Circuit court ruled that Microsoft was a monopolist violating sections 1 and 2 of the Sherman Act of 1890, and Microsoft should be split into two companies. The Court of Appeals demanded a settlement be reached. The conditions of the settlement called for Microsoft to be split into two companies, and to stop all anti competitive techniques. For many this decision was not a remedy as Microsoft was allowed to made sure that it complied with the settlement, and Microsoft is charging to much for licensing fees for middleware to seamlessly interact with windows. The State of Massachusetts and many other companies are still trying to further prosecute and push for harsher action (“Antitrust Li...

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... 2004. <http://www.nyu.edu/classes/jackson/social.issues/.>

Krim, Jonathan “Judges Hear Challenges to Microsoft Settlement.” The Washington Post Company. 5 Nov. 2003. 21 Jan. 2004. <http://www.nyu.edu/classes/jackson/social.issues/>.

Stone, Mitch “Microsoft Security Secret.” Boycott Microsoft. 7 Oct. 2000. 21 Jan. 2004. <http://www.nyu.edu/classes/jackson/social.issues/>.

“United States court of appeals.”

<http://pacer.cadc.uscourtsgov/common/opinions/200106/00-5212a.txt>.

"US v. Microsoft: Court's Findings of Fact.” <http://www.usdoj.gov/atr/cases/f3800/msjudges.htm>.

Wilson, Warren. "Trial hangs future of Microsoft in the balance." Seattle Intelligencer. <http://www.bluemaxcom/info/Interesting_Articles/Outside_of_Area/Seattle%20 Post%20Intelligencer/Microsoft%20Trial%20to%20Begin.htm>.

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