Why Was Microsoft Investigated for Antitrust Behavior - Essay Example

Various lawmakers are carrying out investigations if Microsoft Company was creating a monopoly in the markets available for computer software. 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. Microsoft Office was to be used to operate an operating system that was specifically from Microsoft Company. The 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 using Netscape Navigator and other browsers. According to the lawmakers, Microsoft Company was mortified by these exclusive dealings. This type of regulation gives Microsoft sole rights to a particular commodity. This led to Microsoft's 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 its 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 on the providers and the market in general. Artificial pricing can be caused, by an increase in demand for products with low supply, no response to complaints made by the users, and the users may find it difficult to change to other services and products. Zanettin(2002) asserts that despite variations by lawmakers, the profits and market power of Microsoft Company are in danger. According to press reports, a 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 the United States in the market would be undermined if a sanction is put on the software. He continues to assert that Microsoft could be breaking 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 for performing calculations that were complex and used in creating hydrogen and atomic bombs. Microsoft Company did not acquire a monopoly position in the software used because the operating system available was greater technologically. Many analysts in the software industry may have differences of opinion on whether Windows is one of the ideal systems and whether it is not stable in office use day by day.

The industry concerned with software was supposed to make standards of the operating systems 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 economic development. This is not only in the software industry but even in other major companies. This capitalist accumulation process leads to the amalgamation of small amounts of capital into large amounts of capital. Read More