Microsoft Antitrust Case

Study Notes

The Battle for Control of the Internet

The US government's accusations against Microsoft are rooted in the company's alleged anti-competitive practices, including monopolistic behavior, unfair licensing agreements, and predatory pricing strategies, all of which are said to stifle innovation and limit consumer choice.
Microsoft is the dominant player in the computer operating system market, with its Windows operating system being the most widely used.
Venture capitalist Derek Proudian describes Microsoft as "the water we swim in", implying that the company has a significant impact on the entire market.

ZIP2 and Elon Musk

ZIP2 is a California company that provides online access to information about cities, founded by 27-year-old Elon Musk.
Musk started the company at the age of 23 and has since become a success story, with his own command center and thriving business.
Microsoft has tried to get a hold in ZIP2's market but has so far failed.

The Anti-Trust Case

The US government's Chief Trust Buster, Joel Klein, is leading the charge against Microsoft, accusing the company of unfair business practices.
Microsoft's attorney, Bill Newcomb, argues that the company is a fair competitor and has benefited consumers by providing better technology at lower prices.
The government complains that Microsoft's bundling of its Internet Explorer browser with its Windows operating system unfairly blocks competitors like Netscape.

Reactions from the Industry

T.J. Rogers, founder and CEO of Cypress Semiconductors, defends Microsoft, saying that if you're not willing to engage in competition, you shouldn't be in Silicon Valley.
Peter Dougherty, founder of Digital Bitcasting, accuses Microsoft of unfair tactics, saying that the company's software overwrites his technology, making it unusable.
Dougherty has had to channel his business into areas that don't directly compete with Microsoft and thinks government intervention may be needed to control the company.

Historical Context

In 1969, the US government filed an anti-trust suit against IBM, which dragged on for 13 years before being dropped.
IBM was once thought to be arrogant, but other companies like Apple eventually surpassed it, making it one of many players in the industry.
The outcome of the Microsoft case is uncertain, with many experts predicting that the company could eventually fall due to its own weight, just like IBM.

Description

This quiz is about the antitrust case against Microsoft in the 1990s, accusing the company of unfair business practices and monopolizing the computer operating system market. It covers the reactions from the industry and the historical context of the case. Test your knowledge about this significant event in the tech industry.