Microsoft Case Study

Microsoft was sued on the basis of the Sherman Anti-Trust act in 1998 by the United States Justice Department and 19 states. Microsoft was sued because it “alleging (i) that it monopolized the market for operating systems of personal computers and took anti-competitive actions to illegally maintain its monopoly; (ii) that it attempted to monopolize the market for Internet browsers because such browsers would create competition for operating systems; (iii) that it bundled its browser (Internet Explorer) with Windows; and that it engaged in a number of other anti-competitive exclusionary arrangements with computer manufacturers, Internet service providers, and content providers attempting to thwart the distribution of Netscape’s browser” (Economides, 2001). By Microsoft bundling their two services together they were dominating both the operating system but also the browser war since all computers with Microsoft operating system was supplied with Internet Explorer. The Government was watching Microsoft for many years due to their dominance of the market, finally Microsoft got sued in...