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Microsoft Monopoly Case Analysis

The document summarizes a case against Microsoft regarding allegations of monopolistic behavior in Europe. The European Commission fined Microsoft 497 million euros and ordered it to offer a version of Windows without Windows Media Player. The ruling upheld sanctions against Microsoft for bundling Media Player with Windows and restricting competition in the software market. Microsoft argued it was simply improving its products for consumers, while competitors alleged Microsoft was using its dominance over the Windows operating system to restrict competition. The document provides background on the legal issues and arguments on both sides of the case.

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Rishita Jain
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666 views2 pages

Microsoft Monopoly Case Analysis

The document summarizes a case against Microsoft regarding allegations of monopolistic behavior in Europe. The European Commission fined Microsoft 497 million euros and ordered it to offer a version of Windows without Windows Media Player. The ruling upheld sanctions against Microsoft for bundling Media Player with Windows and restricting competition in the software market. Microsoft argued it was simply improving its products for consumers, while competitors alleged Microsoft was using its dominance over the Windows operating system to restrict competition. The document provides background on the legal issues and arguments on both sides of the case.

Uploaded by

Rishita Jain
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

Microsoft's illegal trade practices *

Details

Publication date : 2005


Subject : International Business Environment
Industry : Information Technology

Key words:

European Union's Executive Commission (EC), Microsoft Corporation, Windows Media


Player (WMP), Sun Microsystems, Windows operating system, European Union (EU),
Apple Computer Inc., Real Networks, European Court of First Instance (CFI), European
Court of Justice (ECJ)

Abstract

The allegations of competitors against Microsoft's behavior aiming for monopoly form
the core of this caselet. The counter arguments given by Microsoft with regard to the
allegations against it, and the ruling of the EU court related to the trade practices of
Microsoft are also covered.

Issues:

» Allegations against Microsoft's monopoly instincts.


» Sanctions imposed by the European Union court on
Microsoft.
» How Microsoft is restricting healthy competition in the
software market.
» Counter argument by Microsoft over the allegations of
practices of monopoly by the company.

Introduction

On 22nd December 2004, a European Union (EU) court


upheld the sanctions imposed by the European Union's
Executive Commission (EC) on the Microsoft Corporation,
thus dismissing Microsoft's appeal for the suspension of the
sanction. The sanction had been imposed on US software giant
by EC on 24th March 2004.

The EC concluded its five-year-long investigation into Microsoft's alleged monopolistic


behavior by fining the software giant an amount of 497 million euros ($613m; £331m).
Further, the EC ordered Microsoft to ensure availability of a version of Windows without
the Windows Media Player (WMP) and also share its intellectual property with other
competitors in the server industry so as to enable competitors to sell software, which are
compatible with PCs and servers based on Windows....

Questions for Discussion:::

1. Do you support the ruling of European Commission against Microsoft's way of selling
its Windows operating system with the pre-installed Windows media player? Justify your
answer.

2. Microsoft's CEO Steve Ballmer said that every company should have the ability to
improve its products to meet the needs of consumers. Do you think Steve Ballmer is right
and the company is being penalized for being a successful organization?

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