Case Study: The Microsoft Antitrust Case
In fall 1998, the U.S. Justice Department sued Microsoft, the world’s largest software company, accusing it of illegally using its Windows operating system near monopoly to overwhelm rivals and hurt consumers. Specifically, the government accused Microsoft of merging its Web browser into its Windows operating system in order to crush Netscape Communication Corporation, its chief competitor in the browser business. By bundling the browser with Windows and using exclusionary contracts to prevent personal computer makers form hiding or removing the Microsoft browser, Microsoft prevented consumers from using rival browsers (particularly Netscape’s) and also discouraged systems other than Windows. Furthermore, the government accused Microsoft of conducting a campaign to curtail other potential threats form Intel, Sun Micro Systems, Apple Computer, and IBM that enabled Microsoft to extend its power to other areas, such as computer servers and Internet protocols, thus causing substantial and far-reaching harm to consumers by stifling competition and Continue reading