Economics

The Microsoft Case

Rita Borland

dipborland@yahoo.com

Content

Question 1 ……………………………….………………….………………………… page 2

Question 2 ……………………………….………………….………………………… page 2

Question 3 ……………………………….………………….………………………… page 2

Question 4………………………………………………………………………........... page 3

References………………………………………………………………………........... page 4

The Microsoft Case

Question 1: Why was Microsoft investigated for antitrust behavior?

On November 5th, in 1999, The U.S Department of Justice and 20 states claimed that Microsoft was conducting business that violated the Sherman Antitrust Act of 1890. The act was created to, “protect consumers and to guard against businesses fixing prices, rigging bids or allocating customers” (Web Currents, 2002). District Court Judge Thomas Penfield Jackson found that the Microsoft Corporation used its monopoly position in the operating system market to unfairly mute competition in other technology markets, including the Internet Browser market (Web Currents, 2002).

Question 2: Do you agree or disagree that Microsoft was trying to gain monopoly power in the computer software industry?

I agree that Microsoft was trying to gain monopoly power in the computer industry, my reasons why are because of the fact that Microsoft took the first leap into the “Market” to become the leader of the pack and the runner up for the more dominant power over any other company in the software industry. Microsoft’s position then gave them the upper hand in being a monopoly company. Microsoft took the first chance at gaining control over all of the other companies in the industry.

Question3: Are monopolies always bad?

I believe that monopolies are bad for the society but not the “Market” itself as a whole as far as consumers are concerned. I for one think that monopolies help the company grow more dominant for future endeavors. Any company that has a monopoly knows that it will be difficult for anyone to break them apart. And in the long run any...