Government Intervention And Antitrust Law Essays, Book Reports, Term Papers

This essay Government Intervention And Antitrust Law Essays, Book Reports, Term Papers has a total of 3379 words and 19 pages.

Government Intervention and Antitrust Law Government Intervention in Individual Markets: A Look at Government Intervention and Antitrust Law via the Microsoft Case Growth and Development in the US Economy 36-363 Professor Burnett Josh Preiser 0032432 May 9, 2000 Preface In light of recent developments, I took a different approach to this paper. The Microsoft Antitrust case has been somewhat of a phenomenon that has become one of the most prominent cases in recent years. Because of this, I decided to look at government intervention into individual markets, along with antitrust law, via that particular case. I am of the opinion that we can learn a great deal by using that particular ongoing litigation. Antitrust law protects the public from companies that attain an undue domination of the marketplace via mergers, tying 1 product to another, vertical integration, and other practices tending to eliminate competition or bar entry into the market to newcomers. In the early 1980s, Microsoft was a much smaller company than it is today. However, it had already established a reputation of being a predator, a greedy predator. They were known to terminate licenses mercilessly once they figured out a way to clone a given technology, regardless of whether it was legal or not. Back then, Microsoft had some enthusiastic competition. The biggest of which were Borland (programming), Ashton-Tate (databases), Visicalc and Lotus (spreadsheets), as well as Wordstar and WordPerfect (word processors). All of these companies have now either merged out of existence or are completely defunct, with the exceptions of Borland and Lotus (which are barely afloat). Microsoft now has the leading product in each sector of the market once occupied by these firms. The company was responsible for ridding itself of these early competitors by either buying them out or simply driving them into the ground. This early disregard set the tone for how Microsoft does business even today. Microsoft’s advantage comes from their domination of operating systems (OS). “By definition, if the OS maker creates applications, they will run better with the OS than a third party’s, and the OS owner can, over time, create modifications that will make this even more so,” (Rapacious 1). Microsoft has the power to leverage their dominance in operating systems (Microsoft currently has its Windows software in over 90% of all PCs) to gain a large market share in the various application sectors. They have always been able to do this and as a result have been able to get, or achieve, whatever it is that they have wanted. This is the vertical integration that the antitrust laws talk about. In a July 1994, settlement, the Justice Department came to an agreement with the software giant over the antitrust charges it had filed against the company. The charges were brought after the department found out that Microsoft was giving personal computer manufacturers a discount on their OS when the PC manufacturer would pay the company a royalty for each computer sold, including those without MS-DOS or Windows software installed. “The practice gave PC makers little incentive to install competing programs since they would have had to pay a royalty to both the competitor and Microsoft,” (Ramstad 1). The settlement only dealt with this single count and left Microsoft alone to continue performing its numerous other anti-competitive practices. In the spring of 1995, Judge Stanley Sporkin rejected the deal that the Justice Department settled on. He did so on the grounds that: 1. The government refused to give the court enough information about the agreement; 2. The deal was too narrow; it failed to deal with issues like OS/application leverage, and allegations that Microsoft intentionally made changes to Windows that made third party applications hard to run; 3. The parties did not adequately consider anti-competitive issues; 4. The deal was unsatisfactory when it came to enforcement and compliance mechanisms. Around the time of the settlement, some suggestions started to come about how to deal with Microsoft. Stewart Alsop suggested “that Microsoft be forced to document the API’s in Windows, so that other companies could legally clone it. That would still leave Microsoft an eighteen month head start on each release,” (Rapacious 3). It was also suggested that the company be broken up. This way, the operating system and the applications would be separated into different companies and the playing field would become more level. In late August 1995, U.S. District Judge Thomas Penfield Jackson ended what had become a thirteen-month judicial review by signing the agreement Microsoft and the Justice Department had come to. The review had been elongated by Judge Sporkin’s rejection of the deal. The signing, however, did not take the heat off Microsoft’s proverbial back. The Justice Department had already begun investigating some of their concerns about the company’s practices regarding new software and whether they were complying with the agreement. This investigation became the court case we have all been hearing about in these last few months. By the time the Judge Jackson signed the agreement, the government was already looking into Microsoft’s decision to include access to its on-line service, the Microsoft Network, into its Windows 95 operating system. Competitors were afraid that this would allow the company to once again take advantage of its monopoly power in operating systems to gain a large share of the on-line market. A mere three months after its release, the company announced that the Microsoft Network had already enrolled more than 525,000 members. They also had projections putting them over the 2 million member mark by the end of the next year (1996). This went on to fuel its competitors worst fears. America Online, Prodigy and CompuServe were among those that had long been arguing that Microsoft had an unfair advantage with its on-line access included in the OS. “’The industry’s fears are partially correct. Having a button on the desktop works. People click on it,’ said Adam Schoenfeld, of Jupiter Communications,” (Cooper 1). Microsoft’s response to the situation at that time was merely to suggest that there was no evidence showing MSN’s close connection to Windows 95 had tilted the tables into its favor. In September of 1996, Microsoft received a written request for information, (this is known as a civil investigative demand) from the Justice Department. Netscape had accused the company “of going beyond vigorous competition into the realm of illegal tactics in the browser war,” (Just. Dept. Examining 1). Netscape also charged, through letters to the Justice Department, that Microsoft had violated its 1994 consent decree (settlement) with the government by offering PC manufacturers a $3 discount on Windows 95 for giving their browser, Internet Explorer, a more prominent place on computer screens than Netscape’s browser, Navigator. Further complicating Microsoft’s problems, they received another civil investigative demand in May of 1997. This time, the Department of Justice was seeking internal documents having to do with Microsoft’s planned purchase of WebTV for $425 million. “WebTV is a start-up producer of set-top boxes that bring the Internet to television sets,” (US Requests…1). A major industry is expected to develop from the delivering of the Internet via television and other home appliances. So, the opportunity to be among the first in a very promising market is what attracted the company to WebTV. About the same time the government was looking into Microsoft’s purchase, Oracle (another software producer) announced it was buying control of Navio Communications Inc. Navio was developed by Netscape Communications, which, “[facing] ever-stiffer competition from Microsoft…decided to conserve it’s financial resources and shed Navio,” (US Requests…2). Microsoft officials pointed to this move by Oracle in response to the government’s most recent allegations. They claimed that the deal was a sign that their purchase of WebTV was prompting capable companies to get into the market, thereby promoting competition. Drawing further attention to itself, Microsoft invested in Apple Computers. They purchased $125 million in non-voting stock. This act was seen by many, upon first glance, as an effort to further dominate the computer market by swallowing another competitor. However, if one were to consider the pressure that Microsoft was, and is, enduring from the government, one can see an entirely different motivation for the investment. Apple was struggling and this purchase of non-voting stock was designed to help keep the company afloat. As long as Apple remains intact, the computer giant we know as Microsoft has another “competitor” that it can point to in its fight against antitrust violations. In October of 1997, the government finally asked a judge to order Microsoft to stop requiring PC makers to include Internet Explorer when they install Windows 95 in their computers. Attorney General Janet Reno, who referred to the company as a monopoly several times in her press conference, claimed that the company had violated the 1994 settlement, and that the Justice Department would seek a $1 million per day fine if they didn’t stop the practice. She said, This administration has taken great efforts to spur technological innovation, promote competition and make sure that the consumers have the ability to choose among competing products. [This} action shows that we won’t tolerate any coercion by dominant companies in any way that distorts competition. (Labaton 2) The government’s petition was designed to receive an order that would bar Microsoft from compelling PC manufacturers to accept their browser as a condition of receiving operating system. It also asked the court to order the company to notify Windows 95 users that they can use any compatible Internet Browser, as well as provide instructions on how to remove Internet Explorer from their computer. In response to the petition, Bill Gates, Microsoft’s chairman and chief executive, said that his company was not violating the antitrust agreement. He proclaimed his belief that his company had every right to improve and add to the basic features of Windows. He went on to say that he hoped to further improve Windows by adding new capabilities, such as speech recognition and machine vision. The Justice Department has several key issues that it has to deal with in its case against Microsoft. By deal with, I mean they have to get around Microsoft’s answers to their charges. First, the department is accusing the company of threatening computer makers who delete the Internet Explorer icon. The company answers this by clai

Read essay without registering

Donate an essay now and get the full essay emailed you




Acceptable files: .txt, .doc, .docx, .rtf

Email Address

Related Essays

Copyright and Patent Fraud Copyright and Patent Fraud by David Lee Roth 12th hon. Government Mr. Pibb January 5, 1998 Roth 1 Today, more than ever before, products, goods, and services are being provided by businesses of all variations. Fewer and fewer people today are self-sufficient. Practically no one today makes his or her own clothes, and some people do not even prepare their own meals. Today\'s business world and modern day technology make it possible for people to obtain almost anything a
Government Intervention and Antitrust Law Government Intervention in Individual Markets: A Look at Government Intervention and Antitrust Law via the Microsoft Case Growth and Development in the US Economy 36-363 Professor Burnett Josh Preiser 0032432 May 9, 2000 Preface In light of recent developments, I took a different approach to this paper. The Microsoft Antitrust case has been somewhat of a phenomenon that has become one of the most prominent cases in recent years. Because of this, I decide
A breif history of Pracy Piracy is usually determined as a seizure of property (ship, airplane or software) that holds no commission from the owner (“Piracy” 1). It is mostly linked to the dirty, bearded men that sailed the seven seas and robed merchant ships or ships that carried a valuable cargo. This however, was not the case in the late eighties and is definitely not the case today in the nineties. Now software pirates copy software without the permission of the company for their own persona
ABC Finanzas Bill Gates, cofounder of the Microsoft corporation, holds 30.7 percent of its stock making him one of the richest people in the United States. He was the marketing and sales strategist behind many of Microsoft\'s software deals. Their software became the industry standard in the early 1980s and has just increased in distribution as the company has grown, so much that the Federal government is suggesting that Microsoft has violated Sherman and Clayton antitrust acts. Bill Gates\' fir
Bill Gates2 Bill Gates Bill Gates, cofounder of the Microsoft corporation, holds 30.7 percent of its stock making him one of the richest people in the United States. He was the marketing and sales strategist behind many of Microsoft\'s software deals. Their software became the industry standard in the early 1980s and has just increased in distribution as the company has grown, so much that the Federal government is suggesting that Microsoft has violated Sherman and Clayton antitrust acts. Bill G
gates Bill Gates Bill Gates, cofounder of the Microsoft corporation, holds 30.7 percent of its stock making him one of the richest people in the United States. He was the marketing and sales strategist behind many of Microsoft\'s software deals. Their software became the industry standard in the early 1980s and has just increased in distribution as the company has grown, so much that the Federal government is suggesting that Microsoft has violated Sherman and Clayton antitrust acts. Bill Gates\'
gates1 Bill Gates Bill Gates, cofounder of the Microsoft corporation, holds 30.7 percent of its stock making him one of the richest people in the United States. He was the marketing and sales strategist behind many of Microsoft\'s software deals. Their software became the industry standard in the early 1980s and has just increased in distribution as the company has grown, so much that the Federal government is suggesting that Microsoft has violated Sherman and Clayton antitrust acts. Bill Gates\
Negligent Hiring Managing a company\'s human resources, already a challenging task, has become more difficult with the proliferation of alternative staffing options. One alternative alonetemporary staffinghas evolved and grown into a nearly $40 billion industry, largely in response to corporate demand. Sophisticated employers seek tailored solutions to staffing problems, rather than simply increasing payroll when increased productivity is needed. Although most companies rely on some alternativ
violence in the workplace A 16-year-old female restaurant employee is raped by her assistant manager. An old employee who was downsized shoots a 55-year-old engineer. Yearly 1 million Americans are victims of violence while working (Black, p2). Four American are murdered on the job everyday. Everyday millions of Americans leave their homes to began their workday, however some do not always return. The workplace is becoming a common ground for violence. “The U.S. Bureau of Justice Statistics esti
Bill Gates William H. Gates III and His Giant Bill Gates, cofounder of the Microsoft corporation, holds 30.7 percent of its stock making him one of the richest people in the United States. He was the marketing and sales strategist behind many of Microsoft\'s software deals. Their software became the industry standard in the early 1980s and has just increased in distribution as the company has grown, so much that the Federal government is suggesting that Microsoft has violated Sherman and Clayto
Antitrust ANTITRUST Table of Contents Monopoly................................................................................3 Predatory Pricing....................................................................4 Conglomerate Mergers...........................................................5 Vertical Mergers....................................................................12 Horizontal Mergers................................................................14 Conclusion/Recommendations.....
Business Law Antitirust Outline Thesis Statement: Technological advancement will restructure business law in America. I. Antitrust Law A. What is it? B. Antitrust evolution 1. Sherman Act of 1890 2. Clayton Act of 1914 3. Federal Trade Commission Act of 1914 4. Tunney Act of 1974 II. The United States VS Microsoft A. The case against Microsoft 1. predatory pricing 2. Standard Oil analogy B. Microsoft’s defense 1. AOL was gunning for Microsoft 2. Do antitrust laws pertain to today’s technology I
Mexican Economy Mexican Economy I. Historical, Population, Culture, Political, and Economic Information History Mexico was the site of some of the earliest and most advanced civilizations in the western hemisphere. The Mayan culture, according to archaeological research, attained its greatest development about the 6th century AD. Another group, the Toltec, established an empire in the Valley of Mexico and developed a great civilization still evidenced by the ruins of magnificent buildings and m
Texas InstrumentsA Strategic Analysis Texas Instruments: Fast Forward into the Future Strategic Management MGMT 4853 Case Analysis Nathan Staggs June 27, 2000 The Internet Era is here and the advances in digital technology are completely changing the way we live. From digital cellular phones to handheld computers not much bigger than a stack of playing cards, digital technology has created an unprecedented explosion of new products that allow consumers to communicate with one another as well as
Microsoft and mediation negotiations Since its antitrust trial began in 1998, the software giant Microsoft and the government have met in negotiations three times; now, a fourth round of mediation has been scheduled, these to be presided over by Richard Posner, the chief judge for the 7th U.S. Circut Court of Appeals in Chicago. Although the two sides differ in opinion on many key issues, both sides have maintained that they are open to settlement. The appointment of Posner has aroused some con
Napster / Copyrighted we stand, Pirated we fall: This is what the music industry would have people believe. Welcome to the information age! Any information is available to whoever wants it, needs it, or just has a lot of time to spend looking for it. The latest victim of the information age is the RIAA, The Recording Industry Association of America. The argument: The right to trade RIAA artists songs using the Napster server in MP3 format over the Internet. Can the furor over copyright battles
Computer Software Piracy And Its Impact On The International Economy Computer Software Piracy and it\'s Impact on the International Economy The PC industry is over twenty years old. In those twenty years, evolving software technology brings us faster, more sophisticated, versatile and easy-to-use products. Business software allows companies to save time, effort and money. Educational computer programs teach basic skills and complicated subjects. Home software now includes a wide variety of progr
Mp3 piracy Executive summary It\'s only been about three years since a little known extension of an audio compression technique-MPEG-2 Audio Layer-3 or MP3-opened the door to being able to send large volumes of CD-quality music over the Internet by pack the equivalent of several commercial compact disks onto the equivalent of one CD platter (Lange 01). It also initiated the veritable floor of pirating activity by an underground community students and hackers. Hundreds of MP3 Internet sites sprun
Bill Gates Bill Gates, cofounder of the Microsoft corporation, holds 30.7 percent of its stock making him one of the richest people in the United States. He was the marketing and sales strategist behind many of Microsoft\'s software deals. Their software became the industry standard in the early 1980s and has just increased in distribution as the company has grown, so much that the Federal government is suggesting that Microsoft has violated Sherman and Clayton antitrust acts. Bill Gates\' first
Managing Information Systems Communication, some say, separate us from animals. But not just communication, being able to communicate ideas and concepts and in turn make them into reality. For years businesses have had to distribute written memos and other paperwork to their fellow employees in order to spread their ideas. In the changing world that we live in today this concept of spreading ideas is slowly fading. Communication is spread throughout the globe in a matter of minutes through the u
Bill Gates Bill Gates William H. Gates III and His Giant Bill Gates, cofounder of the Microsoft corporation, holds 30.7 percent of its stock making him one of the richest people in the United States. He was the marketing and sales strategist behind many of Microsoft\'s software deals. Their software became the industry standard in the early 1980s and has just increased in distribution as the company has grown, so much that the Federal government is suggesting that Microsoft has violated Sherman
Modern Piracy With A Breif History Piracy is usually determined as a seizure of property (ship, airplane or software) that holds no commission from the owner ("Piracy" 1). It is mostly linked to the dirty, bearded men that sailed the seven seas and robed merchant ships or ships that carried a valuable cargo. This however, was not the case in the late eighties and is definitely not the case today in the nineties. Now software pirates copy software without the permission of the company for their o
Mexico Mexico Mexico was the site of some of the earliest and most advanced civilizations in the western hemisphere. The Mayan culture, according to archaeological research, attained its greatest development about the 6th century AD. Another group, the Toltec, established an empire in the Valley of Mexico and developed a great civilization still evidenced by the ruins of magnificent buildings and monuments. The leading tribe, the Aztec, built great cities and developed an intricate social, polit
Microsoft Analysis Microsoft Analysis Introduction and Summary of Company History and Background Information Microsoft over the past 27 years has positioned itself as the arterial system of almost all computers rolled into use across the world. Albeit with no competition worth the name to challenge its existence leave alone on technology advancements, the company has still managed to keep pace with both felt and perceived needs of its customers and its niche remains robust thus far. Nevertheless
Internet: A Medium Or A Message? a href= http://www.geocities.com/vaksam/ Sam Vaknin\'s Psychology, Philosophy, Economics and Foreign Affairs Web Sites The State of the Net: An Interim Report about the Future of the Internet Who are the participants who constitute the Internet? Users - connected to the net and interacting with it The communications lines and the communications equipment The intermediaries (e.g. the suppliers of on-line information or access providers). Hardware manufacturers Sof
Kmart KMART CORP. A SEASONED PERFORMER The venerable retailer\'s bid to recoup its fortunes includes a system that overhauls the management of highly profitable seasonal merchandise BY MEGAN SANTOSUS For retailers, the effective management of seasonal merchandise is a delicate proposition. The selling window is of limited duration and the goal is not to get caught with too much-or too little-inventory at the wrong point in the seasonal cycle. Take Christmas items. If there were no tinsel or wrap
Propaganda In The Online Free Speech Campaign Propaganda in the Online Free Speech Campaign Propaganda and Mass Communication July 1, 1996 In February 1996, President Bill Clinton signed into law the Telecommunications Act of 1996, the first revision of our country\'s communications laws in 62 years. This historic event has been greeted with primarily positive responses by most people and companies. Most of the Telecommunications act sets out to transform the television, telephone, and related i
California SB 1386 On July 1, 2003, California enacted an electronic data privacy law to protect residents from one of its fastest growing crimes: identity theft. SB 1386 (Civil Code 1798.29) requires businesses to notify California residents if a security breach results in disclosure of personal electronic data. All businesses are subject to this law regardless of size, location, or operations. Business owners should be aware of the problems associated with identity theft, the steps required to
Microsoft Case Microsoft Anti-Trust Lawsuit When the Department of Justice and 19 state Attorneys General filed antitrust suits against the Microsoft Corporation, the issue was not whether the company\'s industry-dominating Windows software operating system constituted a monopoly. With Windows serving as the command-and-control system for approximately 90 percent of all new personal computers, monopoly power is assumed, and there is nothing illegal about that. The problem, according to Joel I. K
The Great Patient Race When Gordon Gould was a graduate student at Columbia University in 1957, he sketched out the concept of a concentrated beam of light amplified in a gas-filled chamber and coined the term laser to describe it. But Gould waited to seek a patent on his discovery, believing incorrectly that a working prototype was necessary. Eventually, two other researchers were awarded the basic patents instead. After a decades-long legal tussle, Gould finally reveled in victory when a feder
The Solow Paradox a href= http://www.geocities.com/vaksam/ Sam Vaknin\'s Psychology, Philosophy, Economics and Foreign Affairs Web Sites The PRODUCTIVE HARDWARE The world is debating the Solow Paradox. Named after the Nobel laureate in economics, it was stated by him thus: You can see the computer age everywhere these days, except in the productivity statistics . The venerable economic magazine, The Economist in its issue dated July 24th, quotes the no less venerable Professor Robert Gordon ( on
Google Analysis Google, Inc. Overview Google is a global technology leader, focused on improving the ways people connect with information. Through innovations in web search and advertising, Google is now a top Internet destination and possesses one of the most recognized brands in the world. Available to anyone with an Internet connection, Google maintains the world\'s largest online index of web sites and other content. Revenue is generated by delivering relevant, cost-effective online advertis
Modern Piracy With A Breif History Piracy is usually determined as a seizure of property (ship, airplane or software) that holds no commission from the owner ("Piracy" 1). It is mostly linked to the dirty, bearded men that sailed the seven seas and robed merchant ships or ships that carried a valuable cargo. This however, was not the case in the late eighties and is definitely not the case today in the nineties. Now software pirates copy software without the permission of the company for their o
Morality of Napster At a glance, the conflict between Napster.com and the Recording Industry Association of America appears to be very cut and dry, however, analysis of the many factors involved uncover moral and legal issues which prove otherwise. Like any other dispute, this specific case is composed of two opposing arguments. From the perspective of the Recording Industry Association of America (RIAA), Napster infringed on copyright laws. Napster defends that copyright law does not unequivoca
Bill Gates Bill Gates, cofounder of the Microsoft corporation, holds 30.7 percent of its stock making him one of the richest people in the United States. He was the marketing and sales strategist behind many of Microsoft\'s software deals. Their software became the industry standard in the early 1980s and has just increased in distribution as the company has grown, so much that the Federal government is suggesting that Microsoft has violated Sherman and Clayton antitrust acts. Bill Gates\' first
Shakedown The Washington Times www.washingtontimes.com Washington\'s extortion lobby Published February 20, 2005 SHAKEDOWN: HOW CORPORATIONS, GOVERNMENT, AND TRIAL LAWYERS ABUSE THE JUDICIAL PROCESS By Robert A. Levy Cato, 334 pages, $22.95 REVIEWED BY WILLIAM H. PETERSON Worry over security played a big role in the presidential campaign -- and plays it still. For persisting in of D.C. is the naive if popular opinion that government is on our side -- that it is an impartial protector even seeing
Bill Gates Bill Gates, cofounder of the Microsoft corporation, holds 30.7 percent of its stock making him one of the richest people in the United States. He was the marketing and sales strategist behind many of Microsoft\'s software deals. Their software became the industry standard in the early 1980s and has just increased in distribution as the company has grown, so much that the Federal government is suggesting that Microsoft has violated Sherman and Clayton antitrust acts. Bill Gates\' first
Internet: A Medium or a Message? Sam Vaknin\'s Psychology, Philosophy, Economics and Foreign Affairs Web Sites The State of the Net: An Interim Report about the Future of the Internet Who are the participants who constitute the Internet? Users - connected to the net and interacting with it The communications lines and the communications equipment The intermediaries (e.g. the suppliers of on-line information or access providers). Hardware manufacturers Software authors and manufacturers (browsers
The Solow Paradox Sam Vaknin\'s Psychology, Philosophy, Economics and Foreign Affairs Web Sites The PRODUCTIVE HARDWARE The world is debating the Solow Paradox. Named after the Nobel laureate in economics, it was stated by him thus: "You can see the computer age everywhere these days, except in the productivity statistics". The venerable economic magazine, "The Economist" in its issue dated July 24th, quotes the no less venerable Professor Robert Gordon ("one of America\'s leading authorities on
I have no aper to submit. As our mission clearly states, Student Affairs strives to be an integral part of the education of students at Florida International University. Comprised of 19 major departments and units, the Division is involved in practically all aspects of a student\' s total education, both within and outside the classroom. More than 300 employees on both the University Park and Biscayne Bay Campus serve in various capacities for the Division. You can access the departments and man
britian As our mission clearly states, Student Affairs strives to be an integral part of the education of students at Florida International University. Comprised of 19 major departments and units, the Division is involved in practically all aspects of a student\' s total education, both within and outside the classroom. More than 300 employees on both the University Park and Biscayne Bay Campus serve in various capacities for the Division. You can access the departments and many of their individ