The Microsoft Case

The Microsoft Case

Contents

Introduction 2

The Microsoft Antitrust Investigation 2

Personal Opinion 4

Conclusion 4

References 5

The Microsoft Case

Introduction

When it comes to big monopolies like Microsoft pretty much everyone tends to have a different opinion of them. People either think that they are a Monopoly or others see the founder, Bill Gates, as someone who took advantage of a market and was a very successful individual. This paper will discuss the antitrust investigation as well as my personal opinion on whether Microsoft was trying to gain monopoly power in the computer software industry. Also, I will discuss my opinion on if monopolies are bad and provide an example where a monopoly can be a good thing.

The Microsoft Antitrust Investigation

While the case did not start until 1998, the government became interested in Microsoft back in 1991 when the Federal Trade Commission questioned if Microsoft was abusing its monopoly of operating systems(for the duration of this paper abbreviated as OS) within the PC industry. The investigation that followed was closed in 1993 due to a deadlock(2-2). Despite the investigation being closed the Department of Justice opened its own later that same year. Eventually this case was settled in 1994 and Microsoft agreed to sell its OS and other products (such as Office, Internet explorer, etc) as a single product. However, Microsoft was allowed to still include features into the OS. The argument in this case then became if Internet Explorer was a product or a feature.

Next, in 1998 the department of Justice sued Microsoft for preventing competition in order to protect its monopoly. More specifically, they were accused of trying to force their internet browser rival at the time, Netscape Communications out of business. Throughout the whole trial Bill Gates really wasn’t that responsive to questioning. He would continually argue over terms used in the case....