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Essay / Research Paper Abstract
This 5 page paper looks at the issue of antitrust. The paper starts by looking at the Microsoft antitrust case, considering how and why it was brought and the outcomes. The paper then considers the times when monopolies may be advantageous and gives some examples of acceptable monopolies. The bibliography cites 4 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEanti02.doc
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Unformatted sample text from the term paper:
firms have been subject to antitrust changes relating to questionable trading practices and potential abuse of market strength. An infamous case is that of Microsoft; which faced antitrust trust charges
simultaneously in both the US and the EU. The Microsoft case demonstrated the way market position may be abused by dominant firms. However, despite the presence and active pursuance of
antitrust legislation as well as the general rhetoric regarding the dangers and harm of monopolies, it may be argued that in limited scenarios monopolies are acceptable and may even desired.
The aim of this paper is to look at how and why charges were brought against Microsoft and assess if they were justified and then consider why monopolies may be
suitable in different situations. Question 1 Antitrust charges were brought against Microsoft by the US government for four breaches. Firstly the unlawful maintenance of a monopoly in the PC
operating system market3, secondly that Microsoft were seeking to monopolize the web browser market with the free distribution of Internet Explorer (IE), thirdly that the bundling of IE with the
operating system was a tying arrangement and lastly the claim that contracts with ISPs and IAPs4 to distribute IE rather than the competing Netscape equated to exclusive dealings and were
anticompetitive (Lapotka, 2009). Not all charges were upheld; the second charge was to be rejected and the third charge of tying (bundling) was not pursued in the US as the
case progressed despite evidence to support it, although this was a major component of the case heard in the EU and resulted in the court making an order un-bundle IE
(Economides and Lianos, 2009). The last charge was rejected by the district court but upheld by the appellant court (Lapotka, 2009). The main thrust of the case in the
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