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Anti Trust case on Microsoft Company

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Introduction
Microsoft Company was founded in the year 1975 by Bill gates and Paul Allen, when
they entered into a joint venture. The company started by creation of many prototypes, which
enabled it to simulate its systems quickly. Bavasso (38) asserts that Microsoft Company has
advanced in the supplying and development of many types of software. It was investigated for
antitrust behavior because of its tendency to abuse its market leadership in the software industry.
In fact, the legal system investigated it with the major goal being to establish with solid
evidence whether the Microsoft company had developed the monopolistic framework in its
operations. This was aimed at protecting the other software companies like Apple from
extinction. The monopolistic effect usually culminates in unfair competition and subsequent
destabilizing of the market whereby the monopoly leads in supply and decision making in a
particular market niche. The company managed to develop sophisticated computer systems,
which suited the professionals of all categories and careers. Furthermore, these tailored products
could only be compatible with the windows operating system. This dealt a blow to the other rival
companies like Linux Product Company because the Microsoft products were preferred and
could only be used in the windows operating system (First, 27). Microsoft used this move as a
scheme to phase out theory competitors in the computer industry. In addition, the company

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provided it clients with a free internet explorer for browsing while the other rival companies
charged its customers for using its browsers.
This gave Microsoft Company a competitive edge over the rest of the companies in the
computer industry. According to Hovenkamp (25), people used to pay hefty fees for using AOL
and Netscape. All these customers shift to Microsoft Company given that the company did not
charge for its internet explorer browser. However, the company was subject to exclusive dealing,
which offers any company the sole right to advertise or use a particular item in a particular
market niche. This aspect dealt a blow to the Microsoft rival companies because they could not
make use of any invention belonging to the company. This immensely contributes to the
expansion of the market leadership of the giant company over a long time. Moreover, Microsoft
made use of a pricing method, which only benefitted the users of the windows system. This
attracted many techno savvy people to the Microsoft Company. This large-scale operation led to
the monopolistic operation of the company, an aspect which resulted to the investigation of the
operations of the company. Hovenkamp (46) asserts that the monopolistic effect was legally
prohibited given that it resulted to artificial manipulation of the market due to the artificial
pricing. This effect also resulted in high demand of items, which are not in high supply due to the
seasonal production of some commodities. The monopolistic effect also limited the customers
choices due to the fact that they could only buy the commodities available at the monopoly.
The United States v. Microsoft Corporation case in which this company was implicated
of monopolistic practice was prosecuted by Justice Thomas Penfield Jackson (Reynolds, 35).
The plaintiff alleged that Microsoft Company applied monopolistic power in the Intel-based
PC’S especially with regard to the operating systems. The plaintiff complained that the defendant
bundled Internet explorer browser with its own operating system, which compromised browser

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market competition. The judge ruled that Microsoft Corporation had indeed breached law by
thwarting competition and compelling the computer manufacturers to include the internet
explorer as one package with the Microsoft operating system. However, the defendant claimed
that its move was an innovative move and its intention was not to wield monopolistic power.
Conclusion
The Microsoft Company has made strides in the computer industry. This has led many
people and its rival companies to believe that it is applying monopolistic techniques. This led to
the antitrust investigation by the legal officers, who established that the company was indulging
in a monopolistic competition. However, the fact is that the company has performed well over
the years and its inventive and innovative operation has given it a competitive edge over the
other companies.

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Name:Course:Professor:Date:IntroductionMicrosoft Company was founded in the year 1975 by Bill gates and Paul Allen, when they entered into a joint venture. The company started by creation of many prototypes, which enabled it to simulate its systems quickly. Bavasso (38) asserts that Microsoft Company has advanced in the supplying and development of many types of software. It was investigated for antitrust behavior because of its tendency to abuse its market leadership in the software industry. In fact, the legal system investigated it with the major goal being to establish with solid evidence whether the Microsoft company had developed the monopolistic framework in its operations. This was aimed at protecting the other software companies like Apple from extinction. The monopolistic effect usually culminates in unfair competition and subsequent destabilizing of the market whereby the monopoly leads in supply and decision making in a particular market niche. The company managed to develop sophisticated computer systems, which suited the professionals of all categories and careers. Furthermore, these tailored products could only be compatible with the windows operating system. ...
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