Microsoft Vs Netscape : Govt Intervention

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Unit 3 Group Assignment BUS305-0504A-05: Economics in a Global Environment Date: October 28, 2005 In this lawsuit, government officials said Microsoft integrated its Web browser, Internet Explorer, with the Windows 95 software program in an attempt to grab market share from rival Netscape Communications Corp. Microsoft was also attempting to purchase the largest companies of home and business financial software Intuit. It was time for the government to step in and put a stop to the major takeovers and try to keep Microsoft from being a “one man show”. This is an appeal from a judgment of the district court (Hon. Thomas Penfield Jackson) holding Microsoft liable for violations of Sections 1 and 2 of the Sherman Act of 1890 and various corresponding provisions of state law. The judgment was entered in two consolidated actions, one brought by the Antitrust Division of the U.S. Department of Justice and the other by nineteen States and the District of Columbia which launched the antitrust suit, accusing the company of trying to drive competitors out of business. This group collected facts and insight from both the consumer/government and Microsoft to show the merits of the case from each side. In the long run, justice was on the side of the consumer and small business owner. The case went to trial in October 1998. Government Side Judge Thomas Penfield Jackson found that software developer Microsoft violated the Sherman Antitrust Act. Judge Jackson used harsh terms to describe Microsoft's actions. He said in his findings that the company had used an "oppressive thumb" and "technological shackles" to stifle competition. Jackson used stinging phrases explaining how the company ran afoul of the Sherman Antitrust Act. That act forbids every contract, scheme, deal or conspiracy to restrain trade. It also prohibits conspiring to secure monopoly of a

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