Microsoft case study. microsoft vs the us and the eu

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  • Publié le : 21 mars 2011
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TABLE OF CONTENTS

Part 1 – INTRODUCTION

Brief history of the Microsoft Corporation Company ………………………………..
Microsoft vs the United States of America …………………………………………...
Microsoft vs the European Union ……………………………………………………...

Part 2 – MICROSOFT VS THE UNITED STATES OF AMERICA

Part 3 - MICROSOFT VS THE EUROPEAN UNION

Part 4 - CONCLUSION

INTERNATIONAL BUSINESS LAW – MICROSOFT CASESTUDY

INTRODUCTION and brief history of the Microsoft Corporation company

With annual revenues of dozens of billions every year, Microsoft Corporation is one of the biggest software company in the world and its a cultural phenomenon. Microsoft is an American public corporation that develops, sells, licences and support a large variety of products related to computing. The company isknown worldwide and employs approximately 88 000 people in more that 100 different countries. Microsoft was born in New Mexico (USA) in 1975. It was created by two american students : Bill Gates and Paul Allen. The company was lead by Bill Gates for a long time, making him the wealthiest man on the planet for many years aswell as a worldly known and famous businessman.

The origin of the companygoes back to the 1960s, where Gates and his good friend Paul Allen begun to be interested in testing computers. They established their fist company in 1972, which sold a basic computer capable of analyzind traffic data. Both friend left their University studies later on to focus more on developping computer programs. Microsoft was then found in 1975. In the 1980s, IBM contracted Microsoft inorder to develop languages for its own Personal Computer, the PC. In a series of event where IBM could not agree on terms about the contract of the operating system with its partners, Microsoft acquired the rights to the product that would later become the famous MS-DOS. Microsoft then had all the rights to selling this operating system to consumers and companies, and its MS-DOS rapidly became theindustry leader in operating system, making the company’s revenues grow extremely rapidly. 20 years later, the company was still a leader in the industry with billions of dollars in annual revenue and no long term debts.
Microsoft Corporation is still an important leader today by its domination in selling operating systems. The company constantly releases new versions of the Windows operatingsystem and is the second positioned company in the NASDAQ stock exchange, following its long time competitor, Apple.
MICROSOFT VS USA

The case famously known as United States versus Microsoft is about many consolidated civil actions that were filled against the company in 1998 (May 18) by the United Stated Department of Justice aswell as 20 american states. The American Government had begun toinvestigate about Microsoft’s activities as far as 1991. The investigation was about knowing if the Microsoft Corporation was abusing of monopoly conduct on the PC operating system market in the United States.

The company was finally pursued years later because of the fact that is was suspected of violating the « Sherman Antitrust Act » which statute to limit monopolies, cartels or any otherforms of antitrust in an industry. Microsoft Corporation was accused of abusing of monopoly power on Intel computers and its operating system and browser sales. Microsoft was also accused of the violation of a decree that was agreed in 1994 stipulating that the company forced computer makers to automatically include its own browser in computers operating with the Windows system. The main issue ofthe trial was about Microsoft association of its web browser (Internet Explorer) with its operating system (Microsoft Windows). Since every personal computer operating with Windows automatically had Internet Explorer as a browser, this association of the two Microsoft’s famous products is suspected to be responsible for the victory of the company in the « browser wars ». This association also...
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