BUSINESS ETHICS

Antitrust Claims

Antitrust Claims

Introdcution

In May of 1998 the United States Department of Justice (USDOJ) was joined by 20 States and the District of Columbia in a lawsuit naming Microsoft as the defendant. There were four allegations levied against Microsoft, all of which were violations of the Sherman Antitrust Act.

Violations of Section 2 of the Sherman Antitrust Act.

Illegally monopolizing the Personal Computer Operating Systems Market.

Making contractual agreements with manufacturers of related goods and services to not compete with Microsoft in an effort to maintain and enhance it's monopoly.

Attempting to illegally monopolize the Internet Browser Market Violations of Section 1 of the Sherman Antitrust Act.

Illegally bundling Microsoft Internet Browser and Internet Explorer with Microsoft Windows Operating System in a manner that limits competition.

Section 2 of the Sherman Antitrust Act states:

"Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony."

The USDOJ et alia sustain that Microsoft:

Engaged in predatory and anti-competitive actions with the specific intent to monopolize.

Had a dangerously high probability of achieving monopoly power

Acted to acquire, preserve and enhance its monopoly.

Section 1 of the Sherman Antitrust Act states:

"Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal." It is also the position of the USDOJ et alia that Microsoft:

created a situation in which consumers were being harmed or could be harmed by

a. Direct lose from high prices

b. Limited choice of variety

c. Retardation of the innovation process.

In monopolizing the Operating System Market, Microsoft took advantage of its relationship with Independent Software Vendors to get MS Windows positioned ...