The Microsoft Monopoly Essay

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Microsoft Monopoly The Microsoft Monopoly Investigation Danielle E. Berg Kdberg1228@msn.com Economics 312 – Principles of Economics Professor Seun Onodipe March 18, 2012 Introduction…………………………………………………………………………...page 1 Microsoft is Investigated for Antitrust Behavior.………….………………………....page 1-2 Was Microsoft Trying to Gain Monopoly Power?..……….…………………………page 2-4 Monopolies are Not Always Bad……………………………………………………..page 4-5 Conclusion…………………………………………………………………………….page 5 References…………………………………………………………………………….page 5 The Microsoft Monopoly Investigation Introduction The Microsoft Corporation was founded by Bill Gates in 1975 and quickly became a major software vendor in the home computer industry. In 1985, Microsoft released its first version of Microsoft Windows, and then quickly expanded its software offerings to include Microsoft Office in 1989. Microsoft has expanded its product line into the World Wide Web with MSN (Microsoft Network) in 1995, and personal gaming with the Xbox in 2002. In 1990, the United States Department of Justice along with nineteen states and the District of Columbia, filed a lawsuit against Microsoft, alleging that Microsoft had monopolized the market for operating systems of personal computers. The Federal Trade Commission (FTC) began investigating Microsoft for the monopolization of the software market and the violation of the Sherman Antitrust Act. Microsoft is investigated for Antitrust Behavior The Justice Department filed an antitrust suit claiming that Microsoft had entered into licensing agreements with Original Equipment Manufacturers (OEMs) that prevented other operating system vendors from gaining widespread distribution of their products. Judge Jackson ruled that Microsoft violated the Sherman Antitrust Act in many ways (Brinkley, 2000). First, the company attempted to maintain a

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