Anti-Trust Case Against Microsoft Corporation
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In 1998, the U.S. Justice Department and 20 state attorney generals filed lawsuits against Microsoft. In your discussion, include the reason for the lawsuit, the outcome of the trial, and how this lawsuit affected Microsoft and consumers.
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Solution Summary
The solution discusses the past legal problems of Microsoft Corporation. It describes the bases of the lawsuit, the outcome of the trial, and how this lawsuit affected Microsoft and consumers.
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Lawsuits against Microsoft
Reason for the Lawsuit
According to Johnson (2011) "the issue central to the case was whether Microsoft was allowed to bundle its flagship Internet Explorer web browser software with its Microsoft Windows operating system. The plaintiffs alleged that Microsoft abused monopoly power on Intel-based personal computers in its handling of operating system sales and web browser sales".
Economides (2011) records that the 1998 case against Microsoft springs from the following allegations:
1. Microsoft illegally monopolized the market for operating systems for personal computers ("PCs") under Section 2 of the Sherman Antitrust Act;
2. Microsoft had anti-competitive contractual arrangements with various vendors of related goods, such as with computer manufacturers ("OEMs") and Internet Service Providers ("ISPs"), and had taken other actions to preserve and enhance its monopoly; that these contractual arrangements and other actions were illegal under Section 2 of the Sherman Antitrust Act;
3. Microsoft illegally attempted to ...
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