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United States vs. Microsoft Corporation

In: Business and Management

Submitted By aangner
Words 920
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Introduction The Department of Justice investigated Microsoft Corporation for anti-trust behavior throughout the 1990’s. 19 States complained against Microsoft for practicing monopolistic behavior, following the investigation, the case went to trial. The following paper discusses the case against Microsoft, than talks about the monopoly market structure, and how it can affect society.

United States of America V. Microsoft Corporation
Microsoft Corporation, a multinational software corporation, was investigated for anti-trust behavior throughout the 1990’s. Complaints to the Federal Trade Commission (FTC), sparked an investigation on Microsoft corporation for using market power to monopolize web browsing software, which may prevented competing web browsers to gain marginal revenue. (Kleiner, 2011) In 1990, the FTC started investigating the Microsoft Corporation for monopoly (Brown, 1993), though in 1993 the FTC could not reach a conclusion if Microsoft practiced anti-trust behavior and further dropped the case (Keho, 1993). In 1994, The Department of Justice (DOJ) reopened the case, which resulted in a settlement between the complainants, the DOJ and Microsoft Corporation (U.S. Department of Justice, 1995). In May of 1998, 19 state plaintiffs and the DOJ filed a lawsuit against Microsoft, accusing the corporation for being a monopoly market structure by destroying competing threats posed to Microsoft. The company was accused for bundling their software to include with new computers, while competitive corporations offered their software separately. Microsoft was further being sued for violation of the previous agreement, and violation of the Sherman Antitrust act. The allegations of Microsoft Corporation using their price making power also led to allegations of Microsoft obtaining a pecuniary advantage by monopolizing. By offering the web browser, Internet...

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