Antitrust - Microsoft

8 Pages 2113 Words

erating systems according to the number of computers shipped with a Microsoft operating system installed, and not for computers that ran other operating systems (Check 2). Another practice that the Justice Department accused Microsoft of was that Microsoft would specify a minimum number of operating systems that the retailer had to buy, thus eliminating any chance for another operating system vendor to get their system installed (Maldoom 2). In addition to specifying a minimum number of operating systems that a vendor had to buy, Microsoft also would sign contracts with the vendors for long periods of time, such as two or three years. In order for a new operating system to gain popularity, it would have to do so quickly, in order to show potential buyers that it was had immediate potential. With Microsoft signing long-term contracts, they eliminated the chance for a new operating system to gain the popularity needed to prosper
Probably the second most controversial issue, besides the per processor agreement, was Microsoft's practice of “tying”. Tying was a practice in which Microsoft would use their leverage in one market area, such as graphical user interfaces, to gain leverage in another market, such as operating systems, where they may have competition (Maldoom 2). In the preceding example, Microsoft would use their graphical user interface, Windows, to sell their operating system, DOS, by offering discounts to manufacturers that purchased both MS-DOS and Windows, and threatening to not sell Windows to companies who did not also purchase DOS. In the end, Microsoft decided to suck it up and sign the settlement agreement. In signing the agreement, Microsoft did not actually have to admit to any of the alleged charges, but were able to escape any type of formal punishment such as fines and the like. Although the penalties looked to put an end to all of Microsoft's evil practices, some people think that th...