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Submitted by naimahp on August 4, 2008
Category: Business
Words: 2471 | Pages: 10
Views: 14
Popularity Rank: 118,188
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I. Introduction to Microsoft
Microsoft Corporation was founded by William H. Gates III also known as Bill Gates and Paul G. Allen in 1975. Since their inception they have been credited for developing various operating systems to coordinate with the personal computer (PC). “Microsoft possesses a dominant, persistent, and increasing share of the world- wide market for Intel-compatible PC operating systems. Every year for the last decade, Microsoft's share of the market for Intel-compatible PC operating systems has stood above ninety percent. For the last couple of years the figure has been at least ninety-five percent, and analysts project that the share will climb even higher over the next few years (Justice).” Microsoft has also developed product lines such as office productivity software, software development tools, Internet Explorer, MSN online network, and Xbox which has helped to establish a foothold in the market they possess (Ferrell p399). Despite being highly recognized for innovation, Microsoft has been accused of violating various legal issues from its dominance of particular software markets. Since Microsoft has such dominance in the market, it seems that there has been much confusion to determine if the large firm has violated any antitrust laws.
The antitrust law that Microsoft as been accused of violating is the Sherman Antitrust Act and the Clayton Act. The Sherman Antitrust Act established July 2, 1890 provides: "Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal". The Act also provides: "Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony " The Act put responsibility upon...
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