Microsoft Antitrust Trial:
About Antitrust Laws
Dateline: 11/06/99
About the Antitrust Laws (Continued from page 1)
Some people will argue that Microsoft is being penalized for nothing more than being
"too" successful. The US Department of Justice, and now Judge Thomas Penfield
Jackson, argue that Microsoft's business practices and resulting success make them an
unlawful monopoly in violation of Sections 1 and 2 of the Sherman Antitrust Act.
America's economy is based on competition between companies. As consumers, we benefit from lower prices and better products through competition and innovation. But, the competition must take place in a fair and open environment.
Antitrust laws, like the Sherman Act, are designed to protect fair competition by preventing one or more companies from taking unfair advantage over competitors. Monopolistic business practices stifle competition and innovation and consumers suffer the consequences.
The Sherman Act outlaws all contracts and conspiracies between companies like price-fixing, bid-rigging, and agreed allocation of customers. And, as Microsoft is quickly learning, the Sherman Act outlaws unlawful monopolies.
What is a Monopoly?
An "unlawful monopoly" is any company that becomes the sole supplier of a
product or service by taking actions intended to suppress its competitors, rather than
because of the superiority of its product or service.
Judge Penfield's finding of fact cites the ways in which Microsoft, in his legal opinion, has become just such an unlawful monopoly. Only time and several appeals courts will decide what happens next
Reference Sources
"Finding of Facts" 11/5/99 - Viewable HTML version
"Finding of Facts" 11/5/99 - Download .pdf fileCourt Finding Puts Pressure on Microsoft to Settle
From the About.com NewsCenterOriginal Complaint Against Microsoft
The allegations as filled by the Justice DepartmentUnited States v. Microsoft
All documents, testimony, and evidence -- from the Department of JusticeSections 1 and 2 of the Sherman Act
The law Microsoft is accused of violating.
Related Features on About.com
D-Day for Microsoft
Business Software Guide Steven Gindin examines the implications of the Court's action.
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