Monopolistic Practices

Competitors and the U.S. g overnment argue that Microsoft engages in unfair competitive pr compriseices that stifle competitors, coerce partners, smother innovation, and narrow d profess consumer choice. Judge Thomas Penfield Jackson, the first judge to preside over the Microsoft font likened Microsoft founder Bill Gates and his keep company to the " pile" (Levy 2002, 10). In contrast, accused of unfair competitive practices and aggressively tyrannical tactics, during trial testimony Bill Gates, under oath, maintained he did non know the "meaning" of the word "compete" (Wahl, 2001, 103).

This synopsis bequeath freshen up the Microsoft antimonopoly case that resulted in the company being charged with two violations of maintaining a monopoly under the Sherman antimonopoly Act. Pertinent legislation pertaining to monopolies will be addressed. A review of the case against Microsoft will then be provided, including pertinent charges and topics think to monopolistic practices. Application of economic theories that are applicable to the Microsoft antitrust case will then be reviewed. An analysis will then follow that offers different perspectives on whether or not the charges, findings, and consequences of the Microsoft case are valid with respect to monopoly theory and legislation. A conclusion will address the likely impact of the outcome of the case against Microsoft on

United They Would Stand. (Dec 15, 2001). Economist. 361(8252), 52-53.

wrong public statements by executives concerning future product features and shipment dates.

Microsoft bland faces a number of semiprivate lawsuits and the European Commission continues to look into the company's practices. How e'er, for the most part the company has weathered the case with distant less consequences than many first imagined when the suit was filed. One of the reasons for this was a change in administrations. Former antitrust czar Joel Klein showed groovy disdain toward Microsoft and its practices, as did trial Judge Thomas Penfield Jackson.

The antitrust czar is now Charles James whose settlement was considered a " sapidity on the wrist" by states attorneys-general who fought for harsher measures. When Kollar-Kotelly let the settlement stand, the case came to an end and, as Steven Levy (2002) argues, Microsoft "ended the suit quin years older and 10 years wiser...and with record wages and $40 billion in cash, more powerful than ever" (Levy 2002, 10).

Another piece of legislation pertinent to the Microsoft case is the Tunney Act, an act that specified the procedures the DOJ must follow in rove to be granted a consent decree by the court. When the outcome of the Microsoft Antitrust case was determined, nine state attorneys-general fence the settlement asking for harsher penalties. In addition, competitors also argued the outcome represent a "slap on the wrist" that would so puny to curb Microsoft's monopolistic practices. The European Commission even filed its own suit against the company, in addition to more than 100 private class-action suits (United, 2001). The Tunney Act has also come into play as a result of the settlement that many viewed with suspicion. As reported in the Economist, "Colleen Kollar-Kotelly, the [new] trial judge...has ordered...a review of the existing Justice Department settlement (under the Tunney Act) to determine if it is in the public
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