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    Government Antitrust Policy in Action

    Uploaded by

    Souad Saade
    This document discusses the US government antitrust case against Microsoft Corporation. The government accused Microsoft of violating antitrust laws by gaining a monopoly in the market for personal computer operating systems and hindering competition from other companies like Netscape. The case involved complex legal arguments on both sides regarding whether Microsoft's business practices were predatory or simply innovative. After years of legal proceedings, Microsoft was ultimately found to have violated antitrust laws and faced fines, though debates continued around how its actions impacted competition and innovation.

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    Government Antitrust Policy in Action

    Uploaded by

    Souad Saade
    18 views3 pages
    This document discusses the US government antitrust case against Microsoft Corporation. The government accused Microsoft of violating antitrust laws by gaining a monopoly in the market for personal computer operating systems and hindering competition from other companies like Netscape. The case involved complex legal arguments on both sides regarding whether Microsoft's business practices were predatory or simply innovative. After years of legal proceedings, Microsoft was ultimately found to have violated antitrust laws and faced fines, though debates continued around how its actions impacted competition and innovation.

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    This document discusses the US government antitrust case against Microsoft Corporation. The government accused Microsoft of violating antitrust laws by gaining a monopoly in the market for personal computer operating systems and hindering competition from other companies like Netscape. The case involved complex legal arguments on both sides regarding whether Microsoft's business practices were predatory or simply innovative. After years of legal proceedings, Microsoft was ultimately found to have violated antitrust laws and faced fines, though debates continued around how its actions impacted competition and innovation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    18 views3 pages

    Government Antitrust Policy in Action

    Uploaded by

    Souad Saade
    This document discusses the US government antitrust case against Microsoft Corporation. The government accused Microsoft of violating antitrust laws by gaining a monopoly in the market for personal computer operating systems and hindering competition from other companies like Netscape. The case involved complex legal arguments on both sides regarding whether Microsoft's business practices were predatory or simply innovative. After years of legal proceedings, Microsoft was ultimately found to have violated antitrust laws and faced fines, though debates continued around how its actions impacted competition and innovation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Government Antitrust Policy in Action: The Case of

    Microsoft

    [Type the document subtitle]


    Summary:
    There are two main schools of thought related to antitrust laws. The first one argues that the main

    goals of this law are economic efficiency and enhancing consumer welfare. The second school of

    thought suggests that the purpose of antitrust laws is to protect small firms from the power of

    larger firms.

    Many examples show the contrast between the two points of views and the violation of antitrust

    law. One of the most important examples related to violation is the US government case against

    Microsoft Corporation.

    Briefly, the US government accuses Microsoft of being monopolistic and controlling the market.

    Against the antitrust laws, Microsoft has gained competitive advantage over Netscape by

    combining Internet Explorer with its window system.

    Each party presented its own arguments: Professor Fisher, on behalf of the US government,

    argues that Microsoft is gaining almost all the market shares, which is illegal according to the

    antitrust laws and has the power to force other to get out of the competition by “predatory

    pricing”. On the opposite, Professor Schmalensee states that Microsoft is offering a unique

    service at zero marginal cost and customers are well satisfied with it.

    After proceeding legally with the case, in 2001, many parties believed that settlement of the case

    by the justice department will not prohibit Microsoft from being monopolistic and controlling the

    market.

    Violating the antitrust laws by Microsoft also dates back to 1999 when Sun Microsystem accused

    Microsoft of not competing fairly with others parties and not disclosing related information.
    In 2004 and 2005, fines were imposed on Microsoft due to illegal actions. Many contrary

    approach claim that this reaction will limit creativity and innovation by big companies.

    Years later, in 2007, Microsoft’s shares of market keep on increasing. Unlike the reality, the

    commission states that Microsoft needs to reveal its information to its competitor at little or no

    cost.

    Finally, after many thoughts, Microsoft decided not to appeal to the European Court of Justice

    and to abide to the antitrust laws regarding power, information and competition (2004).

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