Case two: Microsoft Corporation (Summary)

                SABITA BARAL

Case two: Microsoft Corporation (Summary)

Microsoft, one of the top software companies continues to fight a long, drawn-out antitrust battle with European Union (EU) regulator. Microsoft settled part of its antitrust case with the United States Department of Justice (DOJ) and 20 state attorneys general in 2004.

The EU began its antitrust investigation of Microsoft in 1998 with it received a complaint from Sun Micro systems alleging that Microsoft was willfully concealing information that Sun required for its software to successfully interoperated with Microsoft windows. Subsequently, the EU opened a second unrelated investigation of Microsoft in 2001 when the company began shipping its operating system with freely attached media player software that competed directly with rival offerings such as RealNetworks’ RealPlayer.

The U.S. DOJ settled its antitrust case against Microsoft in November 2001, and the state attorneys general followed suit shortly thereafter. The settlement dictated that 1) Customers must have a choice about what Windows components are mandatory in any installation of the operating system, and 2) Microsoft must disclose certain information to allow third party developers to create software that better interoperates with Windows.

The company now has began to make changes to its current business model, embracing radical, innovative new thinking, incorporating other companies and technologies into its domains. This behavior widely different from the fiercely anticompetitive and monopolistic tactics that Microsoft has used to thwart its enemies in the past.

REFERENCES

Weiss, J. W. (2006). Business Ethics: A stakeholder and issues management approach (5^th ed). OH:

            Thomson.