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Antitrust Keyed to Gavil, 5th Ed.
United States v. Microsoft Corporation
Citation:
253 F.3d 34 (2001)Facts
Microsoft dominated the market for Intel-compatible PC operating systems with a market share exceeding 95%. This market was protected by an “applications barrier to entry” – consumers preferred Windows because it supported many applications, and developers wrote for Windows because it had many users. When Netscape Navigator and Java emerged as potential middleware threats that could erode this barrier by enabling applications to run across different operating systems, Microsoft took various actions to neutralize these threats. These actions included integrating Internet Explorer into Windows, imposing restrictive license terms on OEMs that prevented them from removing IE or promoting rival browsers, entering into exclusive deals with Internet Access Providers to promote IE exclusively, pressuring Apple to favor IE, and taking steps to impede Java’s cross-platform capabilities. Microsoft also engaged in deceptive conduct toward Java developers. The District Court found Microsoft liable and ordered the company to be split into two separate entities. During and after the trial, the District Judge gave numerous interviews to the press discussing the merits of the case, which raised concerns about his impartiality.
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