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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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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"The government viewed Microsoft as a paranoid monopolist, someone who gets up in the middle of the night and shoots at any movement."

- Harry Edwards, Chief Judge, US District Court for Appeals for the District of Columbia.

"The Sun was definitely shining in Seattle... Today's ruling really does go a long way toward positively resolving this matter for Microsoft, for our customers, partners, and shareholders."

- Steven Ballmer, CEO, Microsoft, commenting on the US Court of Appeals for the District of Columbia reversing the District Court ruling that Microsoft be broken into two companies.

Microsoft A Monopoly?

In the late 1990s, as Microsoft1 was preparing to enter the new millennium, the company was fighting the anti-trust proceedings initiated against it by the US government. One of the main charges against Microsoft was that it was distributing its Internet browser software, Internet Explorer (IE), free of cost along with its Windows Operating System. Microsoft was a late entrant into the Internet software market. Subsequently, it adopted aggressive marketing tactics to catch up with the early entrant, Netscape Communications. Netscape protested against Microsoft's move calling it an attempt to shut out other software that competed on a stand-alone basis.

Another important charge against Microsoft was that it had modified Sun Microsystems' Java language in order to make it Windows compatible.

Microsoft Antitrust Case - Next Page>>

1] In 1998, with a market capitalization of $466 billion, Microsoft was the global computer software leader and had emerged as the world's most valuable company. Microsoft's products included operating systems (OS) software for personal computers (PCs), server applications for client/server environments, business and consumer productivity applications, interactive media programs, and Internet platform and development tools. Microsoft's products were available in over 30 languages and sold in more than 50 countries.


  

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