In 1998, a solecism was filed by the United States Department of evaluator (DOJ) and twenty US States against Microsoft. The case of U.S. vs. Microsoft the economics and policymakers find that the case was about the suitable position of competition policy through and through out the new global economy. The U.S. Department of Justice, Attorney oecumenic of the District of Columbia and 19 state attorneys general stated that Microsoft acted in a anticompetitive behavior designed to uphold its direct system monopoly to the loss of consumers. There are three particular actions that Microsoft has been charged with, monopolizing the computer operating system grocery, integrating the earnings Explorer web browser in attempt to fend off Netscape as competition and using its market power to variant anticompetitive contracts with producers of related goods (Gilbert & Katz, 2001).
The United States government has the Sherman antitrust form for a reason and it is to protect the rights of small lineage owners and the consumers. The Sherman Antitrust Act was enacted in 1890 and outlawed all conspiracies that unreasonably trammel interstate and foreign trade, combinations and contracts. This included contracts among competitors to allocate customers, rig bids and relieve oneself expenses.
An illegal monopoly exists when only one company or business controls the market for a service or product and it has gained that market power, not because its service or product is better than others, barely by holding back the competition with anticompetitive behavior. When there is a descending demand curve for an industry there must(prenominal) be the same demand curve for the company or business (Gilbert & Katz, 2001). This gives Microsoft the power to be a determine creator in which they can set the price and shift whatever quantity of products or services to the consumers at the price they are willing to buy.
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