The Monopolistic Actions of Microsoft

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Technology plays an important role in our postmodern society. With everyone in the world connected in at least some form of technology, computing and technological firms take on an ever-increasing mantle in society. One such firm is tech and software giant Microsoft. In 2013, Microsoft reported a net revenue of $77.31 billion, while the firm grew by four percent. It owns subsidiaries in 113 countries and employs 100,932 people worldwide. In the United States alone, 59,197 are employed, with more than three-quarters are male and the rest female (Microsoft 2013). Over 90% of the online population use Windows as their operating system (Bott 2014). The firm is also a founding member of the UN Global Compact. However, with such broad reach of consumers, Microsoft is infamous for accusations of monopolisation of the market, especially regarding its breaches in anti-trust and competition law, with some instances going against the United States and European Union’s governments. This paper will argue that perceived monopolistic actions of the firm benefits some of its important stakeholders: consumers and partners, particularly not-for-profit organisations by spurring innovation and growth through its perceived ‘monopoly’ of personal computers and operating systems.
The Case against Microsoft
Microsoft’s domination of the operating system industry has attracted the attention of powerful regulatory bodies like the European Commission, spurring accusations of monopoly. Windows, Microsoft’s flagship product, has traditionally been bundled with Internet Explorer, its official browser. The Economist (“Sin of Omission; Microsoft’s Antitrust Fine” 2013) notes that:
‘This, thought the commission, might be an abuse of its dominance in operating sys...

... middle of paper ...

...crosoft v. Commission.” Yale Journal on Regulation 25 (2): 247–301.
Vuong, Andy. 2014. “Microsoft Finally Innovating Again and Closing Gap with Apple.” The Denver Post. Accessed March 18. http://www.denverpost.com/business/ci_22111133/microsoft-finally-innovating-again-and-closing-gap-apple.
“Deadly Embrace.” 2000. The Economist, March 30. http://www.economist.com/node/298112.
United States v. Microsoft Corporation, for Committing Monopolization. 2001. United States Court of Appeals for the District of Columbia Circuit.
Microsoft Corp. v Commission of the European Communities. 2007. European Court of Justice.
Microsoft. 2013. “Microsoft Citizenship Report 2013”. Microsoft. http://download.microsoft.com/download/2/5/9/2597728D-72EE-4FDC-BD93-814AD436ABDA/FY13%20Report%20FINAL%20Oct%2013.pdf.
“Sin of Omission; Microsoft’s Antitrust Fine.” 2013. The Economist, March 9.

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