Microsoft's Monopoly Control Threatens Competition and Innovation

As the trial against Microsoft begins, critics warn that the software giant's predatory behavior and monopoly control of key markets could further erode competition and stifle innovation. According to the Project to Promote Competition and Innovation in the Digital Age, Microsoft's practices have already led to a decline in competition, consumer choice, and innovation. The company's attempts to restrict competitors, including Netscape, Sun Microsystems, and Intel, demonstrate a well-established pattern of anti-competitive behavior.

Key Takeaways:

• Microsoft has been accused of engaging in predatory behavior, including targeting competitors such as Netscape, Sun Microsystems, and Intel, to undermine their businesses and limit consumer choice.
• The company has used its operating system monopoly to force Internet Service Providers, Internet Content Providers, and personal computer manufacturers to enter into exclusionary contracts that limit the use of software that competes with Microsoft products.
• Microsoft has also entered into anti-competitive agreements with customers and competitors to restrict the use of the Java programming language and substitute a Microsoft version that is linked to the Windows operating system.
• The Department of Justice and 20 state Attorneys General have uncovered a litany of illegal conduct by Microsoft, including exclusionary contracts, anti-competitive agreements, and predatory behavior.
• Companies such as Netscape, Sun Microsystems, and Intel have been targeted by Microsoft's anti-competitive practices, which have had a devastating impact on competition, innovation, and consumer choice.

The Project to Promote Competition and Innovation in the Digital Age (ProComp) is an alliance of companies and trade associations that supports maintaining consumer choice, open and fair competition, and ongoing product innovation in the Digital Age. Member companies include American Airlines, American Society of Travel Agents, Computer & Communications Industry Association, Corel, Knight-Ridder New Media San Jose, Netscape Communications Corporation, Oracle Corporation, Software Publishers Association, Sun Microsystems, Inc. and Sybase.

Statistics:

• Over 20 state Attorneys General have joined the Department of Justice in filing a lawsuit against Microsoft, alleging anti-competitive practices.
• Microsoft has been accused of attempting to restrict the support and distribution of Netscape's browser, proposing an anti-competitive agreement with Netscape to divide the browser market, and giving Intuit valuable placement on the Windows desktop in exchange for its agreement not to support Netscape.
• The company has used its operating system monopoly to force Internet Service Providers, Internet Content Providers, and personal computer manufacturers to enter into exclusionary contracts.

Sources:

• The Project to Promote Competition and Innovation in the Digital Age (ProComp)
• Department of Justice
• 20 state Attorneys General
• American Airlines
• American Society of Travel Agents
• Computer & Communications Industry Association
• Corel
• Knight-Ridder New Media San Jose
• Netscape Communications Corporation
• Oracle Corporation
• Software Publishers Association
• Sun Microsystems, Inc.
• Sybase