The Microsoft Monopoly I. Introduction United States vs. Microsoft is one the largest, most controversial antitrust lawsuits in American history. Many claim the government is wrongly punishing Microsoft for being innovative and successful, arguing that Windows dominates the market because of the product’s popularity, not because of malpractice by the parent company. Others argue in favor of the government, claiming that Microsoft’s practices conflict with the free market ideal. There are many arguments for both sides of the lawsuit, but what the case really comes down to is this: does the government have the right to interfere in today’s marketplace? Or is Microsoft violating laws that are rightfully imposed by the government?
Microsoft, currently one of the world’s biggest and most influential software companies, was found in 1975 by William Gates and Paul Allen. 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.
Anti-Trust Legislation & Microsoft: Do The Ends Justify The Means? Anyone who uses a computer today has likely heard of Microsoft, the maker of Microsoft Windows. Over the past few years, as Microsoft’s software has dominated the market, Microsoft has been involved in a number of anti-trust lawsuits, claiming that Microsoft has engaged in unfair business practices which are monopolistic and anti-competitive. By the end of these proceedings, Microsoft was found to be in violation of federal anti-trust laws.
Case of United States Versus Microsoft United States versus Microsoft Corporation case was a set of combined civil engagements filed against Microsoft relating to the Sherman Antitrust Act by the Department of Justice. In the case, the Department of Justice purported that Microsoft abused monopoly supremacy on PCs in its control of OS sales and web browser software sales (Lohr& Brinkley, 2001). The conflict evolved around the integration of the internet explorer browser software in Microsoft’s Windows OS; a move that was argued to restrict web browser competitors like Opera and Netscape from accessing the browser market. Microsoft argued that it did not have a case to answer and stated the misfortune was the result of the fierce competition and innovation strategies in its industry (Glader, 2006). The following paper aims at analyzing the merits generated from the final settlement of the case and outlines the parties that benefited and those whose interests were harmed.
Perhaps the best solution to Microsoft’s authority would include structural remedies, such as the divestiture remedy, which may be less subject to gaming, but pose the risk of substantial costs. However, other sources suggest that the most effective remedy may be that the government’s victory eases the way for plaintiffs in private antitrust suits to collect monetary damages, which could be sufficient to deter future anticompetitive conduct (Journal of Economic Perspectives). Whatever the approach to resolving this issue may be, it is certain that the Microsoft monopoly can no longer enjoy its precedent benefits. Nonetheless, there remains a grand possibility that Microsoft will be able to maintain its power to at least some extent, due to the fact that their products are needed, and their competition remains inadequate.
Today the software market is growing rapidly, despite the many controversies surrounding it. Most of this controversy is centered around Bill Gates's, Microsoft. Some say they are running a monopoly. Claiming they use their wealth and power to control other software companies by trying to persuade larger companies to not sell their products. They dominating smaller companies by buying them out and taking over their products. This has caused many people to be infuriated with what these people consider a monopoly. At the same time, those who disagree that Microsoft is running a monopoly, might propose that Microsoft is competing fairly. They are only out doing their competitors, not dominating them with wealth and power. Microsoft has the best product available since other competitors lack quality. When someone else produces something better, it will become the most widely used. I for one consider Microsoft to be running a monopoly, especially in the software and computer desktop market. To me it appears as though these markets are owned and controlled by this giant company. They are doing this unfairly, using their wealth to do as they please.
Inner-city America finds it of some interest that this law does not favor the rich, the politically plugged in, or the “white” of this world. America’ richest man, Bill Gates received a stunning setback earlier this month when Judge Thomas Penfield Jackson ruled against the $500 billion software company Microsoft, declaring that it violated antitrust law and was in fact a monopoly. In a Newsweek article dated November 15th rntitled “Bill Takes it on the Chin”, Judge Jackson stated: “Microsoft has demonstrated that it will use its prodigious market power and immense profits to harm any firm that insists on pursuing initiates that could intensify competion”. Why couldn’t Billy be satisfied with say a $100 billion company? The penalty for ignoring the law of “reed rationing” may include having the software giant broken down into a bunch of little midgets. Are you listening William? Greed attracts powerful enemies.
I believe that Microsoft has the best intensions for society, because they are constantly developing the software market into a more competitive and challenging industry. Microsoft’s success as a company is partly due to its commitment to making the best product possible and strategic business practices. The first reason Microsoft is not a monopoly is because of the standardized quality of its OS. Second is the intelligent business practices Microsoft has engaged in through many of its business partners. The legal issues of the alleged antitrust accusations from the department of justice are just totally overrated.
In this paper, team B will discuss the internal and external factors of the Microsoft Corporation. We will explain how these factors affect the four functions of management, planning, organizing, leading, and controlling. Also, we will explain how globalization, technology, innovation, diversity and ethics will be delegated to manage the different factors. Microsoft Corporation was established in 1975 in Albuquerque, New Mexico producing software for developing, manufacturing, licensing, and support for range of software products and service for different type of computing devices. Microsoft grew from six employees to the largest personal computer software company in the world. By 1978, Microsoft earned $500,000 in the first quarter, and by the end of the year they earned revenue of $1,000,000. In the early 1980s Microsoft, in collaboration with IBM they released MS-DOS as their first 16-bit operating system. However after the late 1980s, Microsoft started to build its reputation by creating the Microsoft windows operating system and Microsoft office product, which includes internet explorer, excel, PowerPoint, and word programs. Then in the late 1990s, Microsoft teamed with Sega to incorporated their windows software package into the game developer’s Dreamcast hardware. Also they developed their own gaming system called the Xbox and that eventually was replaced by the xbox360. Microsoft has come a long way and is no longer just a worldwide leader in computer programming but also a major part of the technology world. Microsoft windows have been the flagship and accounts for most of its revenue for Microsoft: but the company has also branched ...
Microsoft has always been known as a software company, and not well known for its hardware. In fact, the only hardware that Microsoft sells to the retail market is branded peripherals. In its heyday, Microsoft was a market leader, bring an operating system to the masses, and leading in internet search. In recent years, however, most of the moves that Microsoft has made have not been in a market leader position, but have been in response to competitors threatening Microsoft’s positions.