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Research paper 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 (First, 27). Microsoft used this move as a scheme to phase out theory competitors in
the computer industry. In addition, the company provided it clients with a free internet explorer
for browsing while the other rival companies charged its customers for using its browsers.
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. 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. The monopolistic effect also limited the customers choices due to the fact that they
could only buy the commodities available at the monopoly.

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Surname 2
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
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.
References

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Surname 3
Bavasso, Arnold. Communications in EU law: Antitrust, market power, and public interest.
Boston: Kluwer Academic Publishers, 2008. Print.
First, Harold. Revitalizing antitrust in its second century: Essays on legal, economic, and
political policy. New York: Quorum Books, 2007. Print.
Reynolds, Alan. The Microsoft Antitrust Appeal: Judge Jackson's "findings of Fact" Revisited.
Westfield, IN: Hudson Institute, 2010. Print.
Hovenkamp, Hatcher. The antitrust enterprise: Principle and execution. Cambridge, MA :
Harvard Univ. Press, 2005. Print.

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