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Published by Ammar Khan

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Published by: Ammar Khan on Mar 13, 2014
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Antitrust Case

OUTLINE  Microsoft a monopoly?  Microsoft Antitrust Case Trial  Microsoft Antitrust Case Verdict  Microsoft Antitrust Case Appeal  SWOT Analysis  Conclusion .

Microsoft’s MS Office applications had 90% of market share  Market share in Internet browser market of 44%. IE. server operating system 36%  Microsoft adopted pricing policy that prevents entry of new players and bundle policy  Distributing Internet browser software. free of cost along with its windows operating system .Microsoft a monopoly?  In late 1990.

Microsoft broken Antitrust policy  October 1997.Microsoft Antitrust Case: Trial  US Government claimed. gave both parties 5months to fight suit Allegations Violating 1994 Consent decree Abuse of monopoly power Made misleading statements and claims Unfair market strategy Justification by Microsoft Ruled out any kind of Violation Not a illegal monopoly Not possibly mean doom for competitors No one has guaranteed position . DOJ began Antitrust investigation  May 1998.

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 .In June 2008.

government’s bid Supreme court declined  Break up Microsoft not remedy: Supreme court  Court upheld conclusion of Microsoft monopoly & violated US antitrust laws having  In 2001.Microsoft Antitrust Case: Appeal  September 2000. court ordered Microsoft and US government resolve remaining issues .

SWOT Analysis STRENGTH Huge Brand name and reputation in the market Have a monopoly in the market WEAKNESS Customers lacked a commercially viable alternative to windows Contradiction among own products OPPOTUNITIES Have potential to attract more customers Should establish a clean image THREAT Threat from competitors companies like from Linux and Apple May face strong illegal obligation .

can only cover the most important  Law should not eradicate competition rather it should ensure proper competition . affected only for short run  Microsoft’s OS monopoly continues today  Microsoft has so many actions against it.Conclusion  Microsoft dominance because of Antitrust case.

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