Microsoft Antitrust Case
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Case Details:
Case Code : BECG006
Case Length : 10 Pages
Period : 1990 - 2001
Pub. Date : 2002
Teaching Note : Available
Organization : Microsoft Corporation, Department of Justice, USA
Industry : Information Technology
Countries : USA
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BECG006) click on the button below, and select the case from the list of available cases:
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
The Verdict
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In June 2000, the US District Court gave its ruling that
Microsoft had violated the US antitrust laws by abusing its monopoly power in
computer operating systems.
Judge Jackson ruled that Microsoft was a monopoly, basing his conclusion on
three factors:
Microsoft's share of the market for operating systems was extremely large and
stable; a high entry barrier protected Microsoft's dominant market share and;
because of the high entry barrier, Microsoft's customers lacked a commercially
viable alternative to Windows...
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The Appeal
In September 2000, the Supreme Court declined to consider the government's bid
to break up Microsoft as a remedy for uncompetitive practices and chose to send
the case to the lower court. In February 2001, in response to Microsoft's appeal
against Jackson's ruling, the appeals court heard arguments for two days,
allowing only about 30 minutes for oral arguments...
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The Options Before DOJ
In September 2001, the DOJ said that it would ask for
restrictions on Microsoft's business tactics. One option could be to
force Microsoft to open its source code for the Windows operating
system-to competitors...
The Damage is Done
Analysts felt that whatever be the outcome of the
legal battle between Microsoft and the US Government, the ruling that
Microsoft was a monopoly left the company open to a deluge of private
suits... |
Exhibits
Exhibit I: US Antitrust Policy
Exhibit II: Chronology of Events in The Microsoft Antitrust Case
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