1 / 22

Have the actions of Microsoft harmed the consumer? The case at a glance. By: Min Lin Nicole Ritter

Have the actions of Microsoft harmed the consumer? The case at a glance. By: Min Lin Nicole Ritter Gerald DesRoches Terry Schmidt Federal Trade Commission Investigation June 1990

lotus
Télécharger la présentation

Have the actions of Microsoft harmed the consumer? The case at a glance. By: Min Lin Nicole Ritter

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Have the actions of Microsoft harmed the consumer? The case at a glance. By: Min Lin Nicole Ritter Gerald DesRoches Terry Schmidt

  2. Federal Trade Commission Investigation June 1990 • Federal Trade Commission secretly investigates possible collusion between Microsoft and IBM. February 5, 1993 • FTC takes no action against Microsoft after 2-2 vote of its commissioners.

  3. U.S. Department of Justice Investigation August 21, 1993 • U.S. Justice Department takes over Microsoft investigation. July 15, 1994 • Microsoft and U.S. DOJ sign consent decree.

  4. Netscape Communications Corp. December 1994 • Netscape Communications Corp. introduces Navigator Internet Browser • shortly after introduction have 80% of Internet browser market; Microsoft less than 5% • three years later, Netscape slips to 50% and Microsoft up to 40%

  5. Consent Decree 1995 • February 14 - U.S. District Judge Stanley Sporkin throws out consent decree • June 16 - Appellate court overturns ruling

  6. Infamous Meeting June 1995 • infamous meeting between Microsoft and Netscape

  7. Windows 95 and Internet Explorer July 1995 • Microsoft releases Windows 95 and “integrated” Internet Explorer

  8. Consent Decree 1995 • August 21 - U.S. District Judge Thomas Penfield Jackson approves consent decree

  9. Department of Justice Investigation September 1996 • DOJ investigates possible violation of consent decree by Microsoft

  10. Violation of Consent Decree October 20, 1997 • DOJ asks Judge Jackson to fine Microsoft $1 million/day for violating consent decree and bundling Windows 95 and Internet Explorer • Microsoft claims the browser is an integrated part of the operating system

  11. Microsoft Guilty December 11, 1997 • Judge Jackson issues preliminary injunction against Microsoft • requires unbundling of Web browser from Windows 95 operating system • appoints “special master” to advise him

  12. Microsoft Appeals and Appeals and Appeals and . . . December 1997 to May 1998 • Microsoft appeals decision • offers computer makers a version of Windows 95 that does not work • DOJ asks Microsoft to be held in contempt for not complying to order • Microsoft appeals appointment of special master • Microsoft allows computer makers to install Windows 95 without Internet Explorer icon • Court of Appeals halts special master investigation • Court of Appeals rules that injunction against Microsoft does not apply to Windows 98

  13. Anti-trust Violation May 18, 1998 • DOJ and 20 states file major anti-trust cases alleging Microsoft abused its monopoly power to stifle competition June 1998 • Windows 98

  14. October 19, 1998 • trial begins in Washington D.C. • Judge Jackson presiding

  15. Sherman Act • Came into force in 1890 • stop corporate giants from forming “trusts” to buy competitors, force others out of business and raise prices. • IBM - 1969 to 1982 • AT&T - 1974 to 1982 • Standard Oil - 1911 • Aluminum Co. of America - 1945 • American Tobacco - 1946

  16. Sherman Act Section 1 • prohibits “tying” arrangements or “exclusionary” contracts Section 2 • prohibits a firm from maintaining monopoly through anti-competitive acts

  17. Courtroom Showdown What must government prove? • proof of monopoly • 80% of computers worldwide use Microsoft operating systems • abusing monopoly power • predatory pricing • exclusionary contracts • market division • hurting consumers

  18. Courtroom Showdown • trial begins October 19, 1998 • government’s key witnesses include deposition videotape of Bill Gates, senior executives from IBM, Apple, Sun, Intel, AOL, Intuit, Netscape, economist from MIT, software experts and admittance of thousands of e-mail “snippets” • Microsoft’s key witnesses are senior Microsoft executives, economist from MIT

  19. AOL and Netscape Merger November 24, 1998 • AOL and Netscape complete $4 billion merger • alliance with Sun Microsystem • Microsoft claims evidence that competition is alive and well and their dominant market position could be overthrown in the blink of an eye • South Carolina drops out of lawsuit

  20. The Verdict June 24, 1999 • trial testimony ends September 21, 1999 • closing arguments November 5, 1999 • Jackson in preliminary findings, declares Microsoft a monopoly November 9, 1999 to April 1, 2000 • Microsoft and government in mediation talks - fail

  21. The Verdict April 3, 2000 • Judge Jackson rules • Microsoft guilty of violating Section 1 and 2 of Sherman Act • invites coalition of states and DOJ to propose remedies June 9, 2000 • Judge Jackson files final decision • actions harmed consumers • orders company split in two

  22. Aftermath June 10, 2000 to present • Microsoft appeals to Court of Appeals • government wants appeal expedited to Supreme Court • Supreme Court assigns appeal to Court of Appeals • decision expected by spring of 2001 • expected to be appealed to Supreme Court - could take another year

More Related