A Civil Complaint against Microsoft - Case Study Example

Microsoft further argued that the fact that the industry was unregulated had meant faster development, lower prices and more choice for consumers. This argument was echoed by other commentators (see Browne, 2001). However, the manner in which the browser is integrated with the operating system means that even when a consumer prefers to use an alternative product the default browser would be Microsoft's. It was not possible for the consumer to backward engineer this, firstly because of the restrictions in the end-user license agreement and secondly because most consumers would not know how to go about doing so.

Hence, in reality, they were being forced to use Microsoft's browser whether they wished to or not (Chin, 2004).Judge Thomas Penfield Jackson held that Microsoft was in breach of both sections 1 and 2 of the Sherman Anti-Trust Act and ordered that Microsoft should separate the browser and other applications from the operating system. However, Microsoft appealed and Judge Jackson's decision was overturned by the DC Circuit Court of Appeals on the basis that since the Judge had given media interviews he had not retained his objectivity.

The DC Circuit Court of Appeal remanded the case to be reheard on a reduced scope of liability. Ultimately the DOJ and Microsoft agreed to a settlement whereby Microsoft would provide its Application Programming Interfaces (APIs) to third parties and set up a Technical Committee of 3 persons to oversee this for compliance. Despite the opposition that this was no more than a slap on the wrist, the US Appeals court unanimously accepted this settlement and Judge Colleen Kollar-Kotelly's directions.

In an interview after the ruling, a disappointed Massachusetts Attorney General Thomas F. Reilly said Microsoft "not only has been ruled a monopolist, they are now a protected monopolist. That's a very dangerous thing." Reilly said the case demonstrates that "our antitrust laws are not effective in protecting consumers," especially in the realm of high technology (quoted in Krim, 2004)