Bus 670

L. Elise Bowling

Antitrust Claims

BUS 670 Legal Environment

Mark Cohen

November 25, 2012

Antitrust Claims

The competition between Microsoft and Netscape has grown increasingly tense in the world of technology. Both push to corner the market for the best online services, and this has led to a bitter rivalry. Netscape focuses more on inclusion, which is paired with open standards and cross-platform interoperability. Microsoft epitomizes the opposite with its lust for control and exclusion, which is paired with a want for vertical integration.

On January 22, 2002, Netscape Communications Corporation, a subsidiary of America Online, Inc., filed suit against Microsoft Corporation in the U.S. District Court for the District of Colombia seeking redress for Microsoft’s anticompetitive conduct against Netscape (AOL Legal Department, 2003). Microsoft is accused of harming Netscape in a series of illegal acts aimed at promoting Microsoft’s Internet Explorer browser at the expense of Netscape Navigator. In addition, Netscape is also seeking “equitable relief to eliminate the continuing effects of Microsoft’s illegal conduct and to restore competition lost in the operating system market and in the Web browser market because of Microsoft’s illegal conduct” (CNN Money, 2002). Vivek Varma, a spokesman for Microsoft states, “every chance AOL Time Warner gets they choose litigation over innovation”. “Microsoft is investing to build products. AOL is investing in lawyers and lobbyists to put roadblocks in Microsoft’s way” (CNN Money, 2002).

In my opinion, I feel that the charges against Microsoft were valid from a legal perspective. Microsoft violated the Sherman Act by unlawfully tying its Web browser to its operating system, to Internet explorer; making it a monopoly. In the Sherman Act it is unlawful for any firm to monopolize so other companies cannot grow if it is relevant by the market (Clearleadership, 2011)....