MICROSOFT & ANTITRUST

Microsoft & Antitrust

Abstract

Antitrust laws were brought to the existence in order to discourage the idea of creating a monopoly, Microsoft was found doing so rather illegally by adopting the means which were against the laws of the market. Monopoly tends to deprive consumers of their rights and allows the power to grow only in the hands of few individuals. This paper tends to analyze the factors which led Microsoft in creating a monopoly and the impact had on the economy.

Table of Contents

Abstractii

Introduction1

Reasons1

The Case2

Grounds2

Target Audience3

Modernism3

Effects & Outcomes4

Conclusion5

Microsoft & Antitrust

Introduction

Antitrust laws draw its origin from the reaction of the public against the corporate control which dominated the U.S market in the lat-nineteenth century. It draws its name from the areas which dealt with trusteeship which, in fact, was legal to a certain extent. The practice which involved the act of transferring stocks in return to gain trust certificates grew out of proportion in the late-nineteenth-century. Rapid industrialization proved a curse for businesses as markets continued to stretch and the productivity saw the new rise but the problem came when the output by the manufacturers were more than the demand in the market, therefore, the competition also increased due to the excess choices consumers had. In order to expand their control, the manufacturers agreed with each other through the backdoor channels to fix the prices and limit the output which resulted in developing the monopoly.

Reasons

Since the output, was limited the prices began to rise, as a result, different manufacturers extracted the money out of the consumers pocket as per their wish (Areeda, 1997). This effect expanded to every market from tobacco to whines and beyond. It also blocked the new entries which were trying to enter the market, but the manufacturers already had controlled the market with great efficiency. In order to deal with such a situation a need of the law was greatly felt in the society, and in 1890 congress served the wish of the people and constituted the law which was aimed to deal with the trusteeship factor. Sherman Anti-Trust Act, named after Senator John Sherman dealt with restricting many trade associated moderation and the opportunity to create a monopoly in the market. It served four areas included agreements between competitors, Upholding monopoly clout, mergers and contractual arrangements between sellers and buyers.

The Case

Prior to analyze the impact the case had it is essential to understand the nature of the case first before arguing its consequences. United States department of Justice along with other states, which rose to, the number to 19 sued Microsoft under the antitrust law which was based on the principle that Microsoft monopolized the market of Operating systems, personal computers and adopted unfair means to retain its monopoly They also laid allegations on Microsoft that it also created the monopoly for the internet browsers by bagging its internet explorer with Windows. They also sued Microsoft on the accounts of indulging in inequitable means by the help of computer dealers, Internet Service providers which ...