The Microsoft Antitrust Case

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The Microsoft Antitrust Case Cynthia McKenzie Content Introduction…………………………………………………………………………...page 2 Was Microsoft Really Trying to Gain Monopolistic Powers?.……………………… page 3 Are Monopolies Good or Bad? ...……….………………….………………………… page 4 Conclusion.………………………………………………………………………....... page 4 References..………………………………………………………………………....... page 5 The Microsoft Antitrust Case Introduction Microsoft is a major computer software manufacturer that has a reputation of greatness known all over the world. Windows operating systems and other applications that run on Windows operating systems for personal and office computers and servers are produced by Microsoft. These include Excel, Power Point, Office, and others. Almost everything Microsoft produces is complementary to a member of Windows operating systems for use on personal computers and servers (Economides, 2003). Over the years, Microsoft gained notoriety as a leader in their field. This also brought some unwanted attention to how they were conducting business. Other competing companies were being shut out of the market because of the way Microsoft was bundling packages and gaining contracts with manufacturers. Bundling, or product bundling, is where several products are combined for sale as one package. In 1995, Microsoft signed a consent agreement decreed by the Department of Justice due to antitrust allegations and investigations. Antitrust is a law that promotes market competition by regulating anti-competitive conduct by companies. In 1998, Microsoft was brought up on charges again because of their antitrust behavior and violating the signed consent agreement made in 1995. A judged found, "Microsoft has demonstrated that it will use its prodigious market power and immense profits to harm any firm that insists on pursuing initiatives that could intensify

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