Microsoft's Case: Microsoft Vs. The US Government

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The case Microsoft vs. The US Government is one of the most famous anti-trust cases in the history of the United States. Microsoft Corporations was originally founded as software programming company in 1975. As the company grew they discovered a unique value in their owned operating system. This asset massively contributed to the success of the company growing in the PC desktop business. This success left thousands of workers within the company to become millionaires. Before Microsoft entered their realm of success through innovative ideas and remarkable foresight of the market, they were facing strong competitive forces like IBM’s OS/2 system. In 1994 the Department of Justice (DOJ) filed a complaint against Microsoft saying that Microsoft had an exclusive contract with original equipment manufacturers (OEMs) which is anticompetitive and allows Microsoft to maintain their monopoly for PC operating systems. A settlement was made which disallowed Microsoft from making integrated products and restricted their licensing activities by not tying software products together. In 1997 the DOJ returned to court saying Microsoft has violated the consent decree as Microsoft to keep up with the new competition has tied Internet Explorer with their OS. This violates the decree. The DOJ was successful in the District Court. It was then brought to the Court of Appeals. The case consisted of the Department of Justice, Attorney Generals from 20 states and the District of Columbia where they sued Microsoft for monopolising the market for operating systems, having anti-competitive contracts with OEMs, attempting to monopolise the market for internet browsers and for integrating their web browser with their operating system. Microsoft was found liable... ... middle of paper ... ...ow OEMs to alter Windows in significant ways and for customers to choose a browser. The case helped competition as well as consumers. The Department of Justice ten years after the case said that nearly every desktop middleware market, from web browsers to instant messaging to media players’ software is more competitive today than when the final judgement was decided. In conclusion the government behaved appropriately as they were really strict in changing how Microsoft conducted business with their rivals. I commend the government for not attacking Microsoft ingenious innovative techniques and their right to compete aggressively. They government came out on top in this case as they were able to analyze every detail properly. Looking back on this case, Bill Gates has proven to be a shark in whatever market he is involved in and his rap sheet is not one to mess with.

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