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The Microsoft Case Essay

664 words - 3 pages

The Microsoft Case

November 17, 2011
Week 3 Paper

Introduction…………………………………………………………………………...02

The Case...……......................………….………………….………………………… 02

Conclusion………………………………………………………………………....... 03

References………………………………………………………………………....... 04

Introduction
The purpose of this paper is to discuss the Microsoft Monopoly case and how it relates to what we have been learning in our Economics class.

The Case
In 1999 Microsoft was accused of violating the Sherman Act, which was passed in 1890 with the purpose of maintaining competition in the marketplace by opposing the combination of entities. Microsoft was positioned as the largest publisher of ...view middle of the document...

The competitors were all offering internet browsers at the same rate, free. That goes against the thought of Monopoly pricing which people assume will be to the highest degree.

Conclusion
Microsoft came to an agreement with the Department Of Justice. By allowing its application programming interfaces with third-party companies and appointing a panel of three people who will have full access to Microsoft's systems, records, and source code for five years in order to ensure compliance, they allowed for third party middle-ware and other internet browsers to appear on their operating systems. The settlement also did not require Microsoft to have to alter any of its code. I disagree with the charges of Microsoft being a monopoly. I think that they were just going with the rules of business which is simply survival of the fittest. There was an open market then as the internet was still pretty new, so they thought that it would be good synergy to include their internet browser with their operating system, which any company in their position would have done.

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