Microsoft As A Monopoly :: Economics

Since the early 1990’s, the United States government and the Microsoft Corporation have ensued upon a battle in the United States courts. The main issue at hand is ultimately money, but one more importantly, the supposed "Microsoft Monopoly." The federal government maintains that Microsoft's monopolistic practices are detrimental to United States citizens, creating higher prices and potentially downgrading software quality, and should therefore be stopped. Microsoft and its supporter’s claim that they are not breaking any laws and they are just doing what they do; making money and providing a service. The only thing Microsoft is guilty of is taking advantage of free enterprise. There have been many arguments and issues that have been raised with the controversy over Microsoft and the U.S. Department of Justice’s claim against Microsoft of monopolistic practices in bundling its internet browser â€Å"Internet Explorer† into its popular Windows computer ope rating system. By doing this, Microsoft would effectively crush its competitors and acquire a monopoly over the software that people use to access the Internet. Sherman Anti-trust Act was passed in 1890. The Sherman Act says â€Å"Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. The Sherman Act also provided for "Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony. The Sherman Act put the responsibility in the hands of the government to investigate and prosecute those suspected to be guilty of this crime. In 1914, the Clayton Act was passed in conjunction with the Sherman Anti-trust Act to assist with anti-trust cases. The Clayton Act prohibited price discrimination between different purchasers if such discrimination substantially lessens competition or tends to create a monopoly ion any line of commerce. The Act also prohibits sales on the condition that the buyer or leaser not deal with the competitors of the seller or lesser â€Å"exclusive dealings†, or that the buyer also purchases another different product, but only when these acts substantially lessen competition. Mergers and acquisitions where the effect may substantially lessen competition are prohibited also by the act. The last prohibition of the act is that no person can be the director of two or more competing corporations.