The Ethics of Microsoft’s Product Pricing Structure

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The Ethics of Microsoft’s Product Pricing Structure

Introduction

Microsoft, currently one of the world’s biggest and most influential software companies, was found in 1975 by William Gates and Paul Allen.[1] It quickly positioned itself as a leader in the software community and due to the strength growth of its user base for the Windows operating system and numerous other products, it became both widely popular and widely hated. Many consumers love the suite of products that Microsoft offers because they are easy to use, are widely supported, and have many applications written specifically to for them. On the other hand, there are many who dislike Microsoft, claiming that their policies lead to an uncompetitive market and that their practices are unethical. In recent years many court cases, including a major anti-trust suit have been brought against Microsoft. This paper aims to focus on the issue of Microsoft’s product pricing structure and to discuss the issues that have arisen because of it.

There are two different yet similar ethical issues surrounding Microsoft’s product pricing. Within the United States there has been growing concern that because Microsoft controls such a large portion of the market that they are using this to their advantage and to drive prices up. A number of cases have been brought to court and found Microsoft guilty of price fixing, causing them to refund money to consumers in states like California and Iowa. The ethical issue clearly surrounds Microsoft’s motives. Are they driving up prices and simply trying to make more money with no thought to the impact on the community, or are they trying to run a legitimate profit-based business that strives to keep make everyone happier and ...

... middle of paper ...

...p://webspeedreader.com/Articles/Microsoft.htm?Default-04-20-2001>

[10] AFP, Microsoft Still in Talks with EU for Possible Compromise, 15 March 2004, <http://news.yahoo.com/news?tmpl=story&u=/afp/20040316/bs_afp/eu_us_it_software_040316204225>

[11] InfoTech, Erwin Lemuel G. Oliva, Software Makers: Pricing Standard Worldwide, 2003, 15 March 2004, <http://www.inq7.net/inf/2003/jun/09/inf_1-1.htm>

14 Santa Clara University’s Markkula Center for Applied Ethics, 2003?, 10 February 2004, <http://cseserv.engr.scu.edu/NQuinn/COEN288/EngrHandbook_Ethics.pdf>

[12] University of Central Florida, Barbara Moore’s Slides, Antitrust and Industrial Policy, 2003?, 15 March 2004, <http://www.bus.ucf.edu/moore/forms/eco2023_b001_ch19.pdf>

[13] Russel Verney, Price Fixing in Plain Sight, 2001, 15 March 2004, <http://www.judicialwatch.org/printer_1302.shtml>

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