Microsoft and How It's a Monopoly

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Microsoft and How It's a Monopoly Since 1990, a battle has raged in United States courts between the United States government and the Microsoft Corporation out of Redmond, Washington, headed by Bill Gates. What is at stake is money. The federal government maintains that Microsoft’s monopolistic practices are harmful to United States citizens, creating higher price and potentially downgrading software quality, and should therefore be stopped. While Microsoft and its supporter’s claims that they are not breaking any laws, and are just doing good business. Microsoft’s antitrust problems began for them in the early months of 1990, when the Federal Trade Commission began investigating them for possible violations of the Sherman and Clayton Antitrust Acts, which are designed to stop the formation of monopolies. The investigation continued on for the next three years without resolve, until Novell, maker of DR-DOS a competitor of Microsoft’s MS-DOS, filed a complaint with the Competition Directorate of the European Commission in June of 1993. Doing this stalled the investigations even more, until finally in August of 1993, the Federal Trade Commission decided to hand the case over to the Department of Justice. The Department of Justice moved quickly, with Anne K. Bingaman head of the Antitrust Division. The case was finally ended on July 15, 1994, with Microsoft signing a consent to settlement. The settlement focused on Microsoft’s selling practices with computer manufacturers. Up until now, Microsoft would sell MS-DOS and Microsoft’s other operating systems to original equipment manufacturers (OEM’s) at a 60% discount. Only if OEM agreed to pay a royalty t... ... middle of paper ... ...ion of guilt. Other people might disagree with me, and there might be a lot of allegations floating around from different companies, but the fact of the matter is plain and simple. Microsoft has not been formerly charged and found guilty of any illegal practices pertaining to them being a monopoly. I believe that the government should stay out of the affairs of the economy, rather than get tangled up in a mess. Even if the government did get involved, due to the extremely fast paced nature of the computer industry. Bibliography: Work Cited  Check, Dan. “The Case Against Microsoft.”  Maldoom, Daniel. “The Microsoft Antitrust Case.”  Maney, Kevin. Megamedia Shakeout. New York: John Wiley & Sons, Inc 1995.  Schmidt, Eric. “The Struggle for Bill Gate’s Soul.” US News and World Report.

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