Microsoft Antitrust Research Paper
Microsoft and Antitrust Laws
Nicole Sherwood
BUS670: Legal Environment
Alexis Hooley
April 2, 2012
Abstract Microsoft has spent 21 years fighting antitrust battles with the US government. These battles began with claims of Microsoft monopolizing the software market, specifically regarding internet browsers. Although the cases were settled in 2002, there is still discussion as to whether or not the claims against Microsoft were truly valid.
On May 18, 1998, the United States Department of Justice and 20 states filed civil actions against Microsoft based on the Sherman Antitrust Act of 1890. It was alleged that Microsoft created a monopoly with the handling of its operating system and web browser …show more content…
Microsoft claimed that separating the operating system from the internet browser would cause the operating system to work more slowly and malfunction. In addition, they stated that the bundling of the Windows operating system and Internet Explorer was the result of much investment and innovation and was necessary to remain competitive in the marketplace, specifically in regards to Apple and the Safari browser. Microsoft continued to restate their position that the operating system and internet browser were truly one product and could not be separated. In 1999, Judge Jackson, who was presiding over the case, ruled that Microsoft had in fact created a monopoly in the marketplace, and was therefore in violation of antitrust laws. Microsoft immediately appealed, but in June of 2000, the court ordered that a break up of Microsoft, separating it into two separate units. One unit would produce the operating system and the other would produce other software components, including the internet …show more content…
Capitalism is a great part of the American dream, but disproving the claims goes beyond believing that Microsoft was exercising their right and ability to be a capitalist company. The root of the belief that Microsoft had violated the antitrust laws was found in the fact that the Department of Justice claimed that Microsoft illegally bundled their software products to create one product to monopolize the market. However, Professor Edward Felten, the government’s computer science expert witness, clarified the distinction between the software products and their codes. Felten described the code and product as different things and therefore the products were two separate products instead of one product as thought by the Department of Justice. (Chin,
Nicole Sherwood
BUS670: Legal Environment
Alexis Hooley
April 2, 2012
Abstract Microsoft has spent 21 years fighting antitrust battles with the US government. These battles began with claims of Microsoft monopolizing the software market, specifically regarding internet browsers. Although the cases were settled in 2002, there is still discussion as to whether or not the claims against Microsoft were truly valid.
On May 18, 1998, the United States Department of Justice and 20 states filed civil actions against Microsoft based on the Sherman Antitrust Act of 1890. It was alleged that Microsoft created a monopoly with the handling of its operating system and web browser …show more content…
Microsoft claimed that separating the operating system from the internet browser would cause the operating system to work more slowly and malfunction. In addition, they stated that the bundling of the Windows operating system and Internet Explorer was the result of much investment and innovation and was necessary to remain competitive in the marketplace, specifically in regards to Apple and the Safari browser. Microsoft continued to restate their position that the operating system and internet browser were truly one product and could not be separated. In 1999, Judge Jackson, who was presiding over the case, ruled that Microsoft had in fact created a monopoly in the marketplace, and was therefore in violation of antitrust laws. Microsoft immediately appealed, but in June of 2000, the court ordered that a break up of Microsoft, separating it into two separate units. One unit would produce the operating system and the other would produce other software components, including the internet …show more content…
Capitalism is a great part of the American dream, but disproving the claims goes beyond believing that Microsoft was exercising their right and ability to be a capitalist company. The root of the belief that Microsoft had violated the antitrust laws was found in the fact that the Department of Justice claimed that Microsoft illegally bundled their software products to create one product to monopolize the market. However, Professor Edward Felten, the government’s computer science expert witness, clarified the distinction between the software products and their codes. Felten described the code and product as different things and therefore the products were two separate products instead of one product as thought by the Department of Justice. (Chin,