The Issue On Microsoft

Essay by PaperNerd ContributorUniversity, Master's August 2001

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The whole issue with Microsoft involves the battle between Netscape Communications and Microsoft's Internet Explorer. Netscape had dominated sales since 1994 but Microsoft threatened it in 1998. This is because Microsoft was going to include its Explorer in Windows and not charge anything for it. Bill Gates reply to this was, "We don't need to make any revenue from Internet software." Netscape on the other hand needed to charge people. Anti-trust investigations were made after Microsoft paid Internet providers to include Explorer, offered discounts on Windows to computer resellers, and made competing browsers unusable. These practices were all monopolistic acts because Microsoft's only incentive was to dominate the Internet. Microsoft was using its monopoly status to illegally compete in the marketplace.

The computer industry has quite a divided attitude towards Microsoft. On one hand they want to see a company that is aggressive and competitive, which Microsoft has shown to be.

On the other hand, the whole industry is scared of Microsoft because they fear that they will come into their backyard and stomp them flat with no warning. The government was the computer industries only source of help to stop Microsoft from pushing them out of the market. Both the government and Netscape allege that in a meeting on June 25th of 1995 that Microsoft came to Netscape to make an illegal offer to divide the browser with Netscape. The deal was Netscape would take all of the browser market that was previous to Windows 95, Unix, and Mac operating systems. Microsoft would take the market for Windows 95. This deal was coupled with a threat that Netscape follow through with what had been offered or Microsoft would take care of them.

No one has any interest in seeing Microsoft blow up since it has benefited its customers. It...