The central issue was whether Microsoft was allowed to bundle its IE web browser software with its Windows operating system. The government alleged that Microsoft had abused monopoly power on Intel-based personal computers in its handling of operating system and web browser integration. In the years that followed, Microsoft insisted that Internet Explorer (IE) was not a product but a feature that it was allowed to add to Windows, although the DOJ did not agree with this definition.
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The commissioners deadlocked with a 2–2 vote in 1993 and closed the investigation, but the Department of Justice (DOJ), led by Janet Reno, opened its own investigation later that year, resulting in a settlement on July 15, 1994, in which Microsoft consented not to tie other Microsoft products to the sale of Windows but remained free to integrate additional features into the operating system.
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The Federal Trade Commission began an inquiry in 1990 over whether Microsoft was abusing its monopoly in the PC operating system market. Gates claimed that Microsoft's entrance into the application market with such products as Multiplan, Word and the new Chart product was not a big-time operation. "We're also saying that only applications that take advantage of Windows will be competitive in the long run." "Our strategies and energies as a company are totally committed to Windows, in the same way that we're committed to operating-system kernels like MS-DOS and Xenix," says Gates. Some insiders say Microsoft is attempting to be the IBM of the software industry.Īlthough Gates says that he isn't trying to dominate the industry with sheer numbers, his strategy for dominance involves Microsoft's new Windows operating system. Claiming more than a million installed MS-DOS machines, founder and chairman Bill Gates has decided to certify Microsoft's jump on the rest of the industry by dominating applications, operating systems, peripherals and, most recently, book publishing. is widely recognized as the most influential company in the microcomputer-software industry.
History īy 1984 Microsoft was one of the most successful software companies, with $55 million in 1983 sales. The two parties later reached a settlement in which Microsoft agreed to modify some of its business practices. Circuit partially overturned that judgment. Īt the initial trial, the United States District Court for the District of Columbia ruled that Microsoft's actions constituted unlawful monopolization under Section 2 of the Sherman Antitrust Act of 1890, but the U.S. government accused Microsoft of illegally maintaining its monopoly position in the personal computer (PC) market, primarily through the legal and technical restrictions it put on the abilities of PC manufacturers ( OEMs) and users to uninstall Internet Explorer and use other programs such as Netscape and Java. 2001), was a landmark American antitrust law case at the United States Court of Appeals for the District of Columbia Circuit. 2004)īusiness practices conducted by Microsoft, when tying its Internet browser and operating system, was monopolistic behavior per the Sherman Antitrust Act. United States Court of Appeals for the District of Columbia Circuit For other cases with similar names, see United States v. This article is about the 2001 antitrust lawsuit.
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