Module 3 discussion
Is Microsoft a Monopoly?
In a celebrated antitrust case tried during 1998, The
Department of Justice charged Microsoft Corporation with a wide range of
anti-competitive behavior. Among the charges leveled by the DOJ was the
allegation that Microsoft illegally bundled the sale of its Microsoft Explorer
Internet browser software with its basic Windows operating system. DOJ alleged
that by offering a free browser program Microsoft was able to extend its operating
system monopoly and substantially lessen competition and tend to create a
monopoly in the browser market by undercutting rival Netscape. Microsoft
retorted that it had the right to innovate and broaden the capability of its
operating system software over time. Moreover, Microsoft noted that Netscape
distributed its rival Internet browser software Netscape Navigator free to
customers, and that it was merely meeting the competition by offering its own
free browser program.
Did Microsoft’s bundling of free Internet browser software
with its Windows operating system violate U.S. antitrust laws? Is combining one
product with another a violation of the provisions of the Sherman Act? Discuss.
Did Microsoft’s bundling of Microsoft Explorer with Windows
extend its operating system’s monopoly and substantially lessen competition?
Discuss.
Did Microsoft, as a result of these practices, create a
monopoly in the browser market?
Has society benefitted from Microsoft software? Isn’t true
that Microsoft’s software has helped make personal computers more accessible
and more affordable to millions? Discuss.
You may want to watch Bill Gates’ deposition available (part
1) at https://www.youtube.com/watch?v=m_2m1qdqieE and (part 2) at
https://www.youtube.com/watch?v=TyM7RpU6cHc . You may also want to use material
at the Department of Justice Antitrust Division: United States v. Microsoft
Corporation, available at
