Monopolistic Practices Microsoft, Inc.

Microsoft Corporation represents a behemoth company that leads the world's technological industry. With more than $40 billion in cash reserves and another $40 billion in investments, the company is poised to please stockholders for years to come despite market and economic factors (Levy 2002). While no one argues Microsoft's position as the leading corporation in the industry, many take exception with how it got there. In the 1990s, the U.S. Department of Justice (DOJ) filed suit against Microsoft under antitrust legislation, accusing the company of monopolistic practices that stifled competition and harmed consumers. The case against Microsoft represents a number of issues with respect to economics, government regulation, and antitrust legislation that are significant topics for discussion. The case against Microsoft ignited a debate between those in favor of the government's action and those opposed to it. While competitors, state attorney generals, and a number of consumers argued the company was guilty of illegal practices that stifle competition and harm consumers, defenders of Microsoft viewed the case as one of "sour grapes" among competitors and unfair intervention by a government - merely because Microsoft had "built a better mousetrap."

Observers of the Microsoft antitrust case argue that the unique nature of the technology industry and the essence of free markets - freedom of competition not perfect competit

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s guilty and should be split in two in addition to other penalties and restrictions imposed on the company in April 2000. However, Microsoft appealed its case and the punishment was overturned but the company was still found guilt of antitrust violations. As the Economist reports, the new sanctions were much less severe, "A bundle of restrictions on its conduct agreed with the DOJ and nine of the 18 states that were co-plaintiffs in the case. A judge has no ruled that this settlement was adequate, with one or two tweaks" (Giving 2002, 14). Microsoft still faces a number of private lawsuits and the European Commission continues to investigate the company's practices. However, for the most part the company has weathered the case with far less consequences than many first imagined when the suit was filed. One of the reasons for this was a change in administrations. Former antitrust czar Joel Klein showed great disdain toward Microsoft and its practices, as did trial Judge Thomas Penfield Jackson. The antitrust czar is now Charles James whose settlement was considered a "slap on the wrist" by states attorneys-general who fought for harsher measures. When Kollar-Kotelly let the settlement stand, the case came to an end and, a

Category: Government - M