Topic > Microsoft as a Monopoly - 1301

Since the early 1990s, the US government and the Microsoft Corporation have engaged in a battle in the US courts. The main issue at hand is ultimately money, but more importantly, the alleged "Microsoft Monopoly." The federal government argues that Microsoft's monopolistic practices are harmful to U.S. citizens, creating higher prices and potentially reducing the quality of software, and should therefore be stopped. Microsoft and its supporters claim that they are not breaking any laws and are simply doing what they do; make money and provide a service. The only thing Microsoft is guilty of is exploiting free enterprise. There have been many discussions and issues that have been raised with the controversy over Microsoft and the United States Department of Justice against Microsoft for monopolistic practices in bundling its Internet browser "Internet Explorer" into its popular Windows computer operating system. By doing this, Microsoft would effectively crush its competitors and gain a monopoly on the software that people use to access the Internet. The Sherman Anti-trust Act was passed in 1890. The Sherman Act says, “Every contract, combination in the form of a trust or otherwise, or conspiracy to restrain trade or commerce between several States, or with foreign nations, it is declared unlawful. The Sherman Act further provided that "Every person who shall monopolize, or attempt to monopolize, or shall combine or conspire with any other person or persons, to monopolize any part of the trade or commerce between the several States , or with foreign nations, will be found guilty of a crime. The Sherman Act placed the responsibility on the government to investigate and prosecute those suspected of being guilty of this crime. In 1914, the Clayton Act was passed along with the Sherman Anti-trust Act to assist. with antitrust cases. The Clayton Act prohibited price discrimination among different buyers if such discrimination substantially lessens competition or tends to create a monopoly in any line of commerce competing with the seller or smaller “exclusive relationships,” or that the buyer also purchases another different product , but only when these acts substantially reduce competition. Mergers and acquisitions whose effect could substantially reduce competition are also prohibited by law. The last prohibition of the law is that no one can be a director of two or more competing companies.