Reference no: EM13802282

Microsoft's Monopoly

In 1998 Microsoft Corporation was charged with violating Sections 1 and 2 of the Sherman Act. According to the plaintiff, Microsoft possessed a "dominant, persistent, and increasing share of the relevant market." Microsoft's share of the market for Intel-compatible PCs was over 95 percent. To maintain its monopoly power, Microsoft convinced developers to concentrate on producing Windows-specific platforms. As a result, Microsoft's competition was unable to reach its full potential because the available technologies did not exist. Microsoft also bundled its browser, Internet Explorer, with its operating system. This action was a result of Microsoft's desire to combat competition from rival browser Netscape Navigator. The plaintiff, the U.S. DOJ, argued that Microsoft violated Section 2 of the Sherman Act by engaging in exclusionary, anticompetitive, and predatory acts to maintain a monopoly. The court ruled in favor of the plaintiff, which contended that Microsoft had violated Sections 1 and 2 of the Sherman Act by tying its browser to its operating system and attempting to monopolize the Web browser market.

What are your thoughts regarding Monopolies? Do you think Microsoft still runs a Monopoly? Why should they be penalized for having "all the ideas"? Do you think Google is now going to take over the world of Microsoft? Tell me what you think the differences are between Google and Microsoft.