Microsoft monopoly-Why was Microsoft investigated for antitrust behavior? Microsoft Companyis one of the biggest companies in the world. It is also termed to be a computer software industry that is diversified. The reasons that lead to Microsoft being reconnoitered for antitrust performance is the fact that there were reports of Microsoft Company abusing the position they had as one of the leaders in supplying operating systems of computers. It leads to various lawmakers carrying out investigations if Microsoft Company was creating a monopoly to the markets available for the computer software’s.
These lawmakers later found out that Microsoft Company was causing a monopoly in the industry of computers. The lawmakers came out with facts used in supporting their judgments (McLaughlin, 1999). Microsoft Company created Microsoft office which gave services to everyone in any professional field. The Microsoft office was to be used to operate an operating system that was specifically from Microsoft Company. This operating system used by Microsoft, is windows. McLaughlin(1999) affirms that during the internet development, Microsoft Company tried to put measurements that were to eradicate and push out other companies competing with them in terms of net browsing.
By doing so, Microsoft Company came up with the internet explorer which was to be used freely in their all operating systems introduced. The introduction of internet explorer came when people were spending their money in using Netscape Navigator and other browsers. According to the lawmakers, Microsoft Company was mortified of these exclusive dealings. This type of regulation gives Microsoft sole rights to a particular commodity. This led to Microsoft competition in the available market being prevented. In addition, Microsoft Company started to use a pricing schedule that was beneficiary to windows users but if someone was using another operating system other than Microsoft, the services or products would be a little expensive.
It was a warning for all users using different types of operating systems other than Microsoft. In addition, Microsoft Company was being reconnoitered for the antitrust behavior (McLaughlin, 1999). According to McLaughlin (1999), the company was blamed for going against the Sherman act that stated that a person, who monopolizes any commerce part with other foreign countries, shall be found guilty of a wrongdoing and punishment is a fine not more than $10,000,000 to a company and $350,000 to an individual.
The person who has attempted to monopolize may also be imprisoned for three years. Monopolization in the United States is an illegal act. Moreover, I agree that Microsoft Company was trying to monopolize the available market. These monopolies may have effects to the providers and the market in general. Artificial pricing can be caused, increase in demand of products with low supply, no response to complaints made by the users and the users may find it difficult changing to other services and products.
Zanettin(2002) asserts that despite variations by the law makers, the profits and market power of Microsoft Company are in danger. According to press reports, court order is being sought by the department of justice in splitting the business of Microsoft Company operating systems from its main role of supplying office applications like Excel, PowerPoint and Word. According to Charles Schumer a senate in New York, the worldwide dominance of United States in the market would be undermined if a sanction is put on the software.
He continues to assert that Microsoft could be broke up another company that would be leading in the world would be from German, China or Japan. The whole industry of computers is an enormous byproduct, coordinated efforts socially and subsidized or directed largely by the United and Britain governments among others (Zanettin, 2002). The first computers developed in the United States were used in performing calculations that were complex and used in creating of hydrogen and atomic bombs.
Microsoft Company did not acquire a monopoly position in the software’s used because the operating system available was greater technologically. Many analysts in the software industry may have differences of opinion whether Windows is one of the ideal systems and it is not stable in the office use day by day. The industry concerned with software’s was supposed to make standards of the operating systems in order to issue a collective platform for the applications writing and workers training who will need to learn every new operating system used by any type of computer.
On the other hand, the system had to standardize and determine the standard system. This was to be done by the competing capitalists’ struggle concerns whereby connections in business and marketing practices considered being sharp were much more counted than the technical quality (McLaughlin, 1999). In conclusion, monopoly is the unavoidable result of capitalist economy development. This is not only in the software industry, but even in other major companies. This capitalist accumulation process leads to amalgamation of small amounts of capitals into large amounts of capital.
The substitute to monopolization is the capitalist monopolies being transformed into public utilities and worked under the control of people working but not an era whereby capitalist is a free competition. References McLaughlin, M. (1999, November 11). Behind the Microsoft antitrust case: computer giants battle for markets and profits. Retrieved from. Zanettin, B. (2002). Cooperation Between Antitrust Agencies at the International level. Oxford: Hart Publishing.