Antitrust Case

OUTLINE
Microsoft a monopoly? Microsoft Antitrust Case Trial Microsoft Antitrust Case Verdict Microsoft Antitrust Case Appeal SWOT Analysis Conclusion

Microsoft a monopoly?
In late 1990, Microsofts MS Office applications had 90% of market share Market share in Internet browser market of 44%, server operating system 36% Microsoft adopted pricing policy that prevents entry of new players and bundle policy Distributing Internet browser software, IE, free of cost along with its windows operating system

Microsoft Antitrust Case: Trial

US Government claimed, Microsoft broken Antitrust policy October 1997, DOJ began Antitrust investigation May 1998, gave both parties 5months to fight suit Allegations
Violating 1994 Consent decree Abuse of monopoly power Made misleading statements and claims Unfair market strategy

Justification by Microsoft
Ruled out any kind of Violation Not a illegal monopoly Not possibly mean doom for competitors No one has guaranteed position

In June 2008, the US District court gave its ruling that Microsoft has violated the antitrust laws by abusing its power in operating system
Jackson ruled that Microsoft was a monopoly; basing on 3 factors Microsofts share of the market for operating system was extremely large & stable A high entry barrier protected Microsofts dominant market share High entry barrier Verdict Company should split into 2 smaller companies Windows operating system Internet & other Business Further Microsoft should auction off the windows source code

Microsoft Antitrust Case: Appeal

September 2000, governments bid Supreme court declined

Break up Microsoft not remedy: Supreme court Court upheld conclusion of Microsoft monopoly & violated US antitrust laws having

In 2001, court ordered Microsoft and US government resolve remaining issues

SWOT Analysis
STRENGTH
Huge Brand name and reputation in the market Have a monopoly in the market

WEAKNESS
Customers lacked a commercially viable alternative to windows Contradiction among own products

OPPOTUNITIES
Have potential to attract more customers Should establish a clean image

THREAT
Threat from competitors companies like from Linux and Apple May face strong illegal obligation

Conclusion
Microsoft dominance because of Antitrust case, affected only for short run Microsofts OS monopoly continues today Microsoft has so many actions against it, can only cover the most important Law should not eradicate competition rather it should ensure proper competition