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Microsoft Antitrust Lawsuit Project
The government’s (GOV) position is that Microsoft Corp. (Microsoft) used unlawful business practices to maintain their monopoly power in the Intel class personal computer (PC) market.
On July 15, 1994, the GOV sued Microsoft, charging it with an unlawful monopoly and restraint of trade in the market for Intel Personal Computer operating system software under sections 1 and 2 of the Sherman Act.
The court found that Microsoft had 95% of the worldwide market for Intel-compatible personal computers operating systems. (The Legal and regulatory Environment of Business, 11th edition, Corley, Chap 48, p 1112)
Sherman Act section 2 (Monopoly Power and intent to monopolize) – To prove these charges the GOV had to prove that:
• Microsoft had more than 70% market share for a specific product in the relevant market.
• That Microsoft had intent to monopolize. ...
Microsoft argued that there was to much competition for them to exercise monopoly power and that they had not behaved in a monopolistic way, none of their arguments showed that they were not capable of charging inflated prices and that they could not sustain at those prices. A preponderance of evidence showed that Microsoft had 95% of the relevant market share, had intent to monopolize and multiple states and foreign nations were affected. ... In this case it was shown that the operating system and the web browser were independent products. Microsoft defensive argument was that the browser and operating system were an integral part of the same product and technically intertwined or the web browser was an operating system feature.
Approximate Word count = 1236
Approximate Pages = 4.9
(250 words per page double spaced)
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