Microsoft Antitrust Case

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Excerpts

In June 2000, the US District Court gave its ruling that Microsoft had violated the US antitrust laws by abusing its monopoly power in computer operating systems. Judge Jackson ruled that Microsoft was a monopoly, basing his conclusion on three factors: Microsoft's share of the market for operating systems was extremely large and stable; a high entry barrier protected Microsoft's dominant market share and; because of the high entry barrier, Microsoft's customers lacked a commercially viable alternative to Windows...

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In September 2000, the Supreme Court declined to consider the government's bid to break up Microsoft as a remedy for uncompetitive practices and chose to send the case to the lower court. In February 2001, in response to Microsoft's appeal against Jackson's ruling, the appeals court heard arguments for two days, allowing only about 30 minutes for oral arguments...

In September 2001, the DOJ said that it would ask for restrictions on Microsoft's business tactics. One option could be to force Microsoft to open its source code for the Windows operating system-to competitors...

Analysts felt that whatever be the outcome of the legal battle between Microsoft and the US Government, the ruling that Microsoft was a monopoly left the company open to a deluge of private suits...

Exhibit I: US Antitrust Policy
Exhibit II: Chronology of Events in The Microsoft Antitrust Case