Microsoft Accused of Unlawful Conduct to Maintain Monopoly

The Justice Department has filed 'finding of fact' documents in federal court, accusing Microsoft of a "broad pattern of unlawful conduct" to maintain its powerful and well-entrenched operating system monopoly. Microsoft dominates the personal computer software industry with its Windows operating system, but the company has rejected the department's contentions as unproven. The arguments in today's filings by both sides encapsulate what each side feels has been proved by testimony and evidence in the antitrust trial.

Key Takeaways:

The Justice Department accuses Microsoft of a "broad pattern of unlawful conduct" to maintain its operating system monopoly, citing actions to contend with Netscape and other rivals.
Microsoft's alleged practices include proposing an illegal division of markets, embarking on a predatory campaign to restrict the distribution and usage of Netscape's browser, and seeking to curtail other actual or potential middleware threats to its operating system monopoly.
The department contends that Microsoft used its dominant position of Windows to penalize companies that refused to exclude Microsoft's rivals or distribute competing products, including IBM, Gateway, and Apple.
Microsoft's actions were motivated by a belief that it could not win simply by competing on the merits, and the company deployed its powers to restrict competition and maintain its market dominance.
Companies that assisted Microsoft in excluding its rivals, such as Compaq, were rewarded with lower prices and better technical and marketing support for Windows.
Microsoft's predatory campaign against Netscape worked, allowing the company to maintain its market dominance.
The department's findings are based on testimony and evidence presented in the antitrust trial.
A verdict in the federal and state antitrust suit against Microsoft could come as early as this fall.
The arguments in today's filings by both sides are not new, but rather encapsulate what each side feels has been proved by the testimony and evidence presented.

Statistics:

Microsoft's market share: not explicitly stated, but implied to be dominant
Number of companies accused of assisting Microsoft in excluding its rivals: at least 3 (Compaq)
Number of companies penalized by Microsoft for refusing to exclude rivals or distribute competing products: at least 3 (IBM, Gateway, Apple)
Timeframe for the antitrust trial: ongoing

Sources: