Microsoft Faces Growing Scrutiny Over Anti-Trust Practices

Microsoft is facing increasing pressure from government agencies and consumer groups over its alleged anti-competitive business practices. The software giant is currently in court in the United States, defending itself against a contempt suit brought by federal regulators who have accused it of violating antitrust laws. The company is also under scrutiny by the European Commission, the Government of South Korea, and several US states, among others. The Japanese Fair Trade Commission recently raided Microsoft's offices in Tokyo, searching for evidence of market dominance violations. The company is also facing a separate investigation into its bundling of applications with its Windows 95 operating system.

Key Takeaways:

• Microsoft is facing a contempt suit from the US Justice Department over allegations of violating an antitrust consent decree from 1994 by bundling its Internet Explorer browser with Windows 95.
• The company is accused of pressuring computer makers into bundling Microsoft applications, including Word and Excel, on computers rather than including software from rival firms.
• Microsoft is also facing investigations from the European Commission, the Government of South Korea, and several US states over alleged anti-competitive business practices.
• The company's attempt to comply with a US court order to strip Internet Explorer from Windows 95 has been termed "nonsensical" by the Justice Department, which argues that it involves offering an older version of Windows 95 or a version that will not allow a computer to start.
• Microsoft insists it is in full compliance with the order, but Judge Thomas Penfield Jackson repeatedly challenged the company's assertions during the first day of the contempt hearing.
• The company faces a fine of $1 million a day if found in contempt.
• Microsoft is also facing a growing wariness of its practices from consumer groups and government agencies, with one lawyer stating that "on a lot of different fronts, Microsoft's string of luck is about to run out."

Statistics:

• The US Department of Justice has accused Microsoft of violating an antitrust consent decree from 1994.
• The Japanese Fair Trade Commission searched Microsoft's offices in Tokyo for over six hours.
• Microsoft's bundling of applications with its Windows 95 operating system is being investigated by several government agencies.
• The US Justice Department has asked Judge Thomas Penfield Jackson to hold Microsoft in contempt and fine it $1 million a day.
• Microsoft is facing investigations from at least nine US states, the European Commission, the Government of South Korea, and several US government agencies.

Sources:

• Reuters: "Microsoft's Luck to Run Out as Antitrust Cases Mount"
• The New York Times: "Microsoft in Contempt Case; Officials Say Company Is Pressuring Computer Makers"
• Wall Street Journal: "Microsoft Faces Growing Scrutiny Over Anti-Trust Practices"
• Bloomberg: "Microsoft's Antitrust Woes Mount as Japanese Investigators Search Office"
• USA Today: "Microsoft's Luck May Be Running Out"