3. Microsoft a monopoly?
In late 1990, Microsoft’s 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
4. 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 Justification by
Microsoft
Violating 1994 Consent Ruled out any kind of
decree Violation
Abuse of monopoly power Not a illegal monopoly
Made misleading statements Not possibly mean doom for
and claims competitors
Unfair market strategy No one has guaranteed
position
5. 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
Microsoft’s share of the market for operating system was extremely
large & stable
A high entry barrier protected Microsoft’s 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
6. Microsoft Antitrust Case: Appeal
September 2000, Supreme court declined
government’s bid
Break up Microsoft not remedy: Supreme court
Court upheld conclusion of Microsoft having
monopoly & violated US antitrust laws
In 2001, court ordered Microsoft and US government
resolve remaining issues
7. SWOT Analysis
STRENGTH WEAKNESS
Huge Brand name and Customers lacked a
reputation in the market commercially viable alternative
Have a monopoly in the to windows
market Contradiction among own
products
OPPOTUNITIES THREAT
Have potential to attract Threat from competitors
more customers companies like from Linux and
Should establish a clean Apple
image May face strong illegal
obligation
8. Conclusion
Microsoft dominance because of Antitrust case,
affected only for short run
Microsoft’s 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