Microsoft Versus The Department Of Justice Essays - Microsoft

Microsoft Versus The Department Of Justice Microsoft Versus the Department of Justice In todays high-tech ultra-fast paced world, there can be no debate as to the importance of personal computers. Personal Computers control virtually every aspect of our daily lives. Businesses, regardless of their size, have local area networks, company Intranets and high-speed wide area networks. Billing, inventory and invoicing would be impossible without help from our Personal Computers. Stocks, bonds and commodities are traded in the markets around the world entirely by computer. The Banking industry relies enormously on Personal Computers for every transaction. Communicating without email, fax transmissions and other forms of computer aided information transfers would be unimaginable. The media would be unable to produce news and information for the masses in the timely manner we know today. Law enforcement agencies, from local police, to field agents of the F.B.I. depend on computer databases for crucial information. Air traffic controllers rely on their computers to safely land and route thousands of planes into airports around the world everyday. Even the military depends on computers to defend our very own borders and interests. With the important role that Personal Computers serve in society today, is it really a good idea to have one company exclusively control the technology running virtually every aspect of our lives? (Kaphing 7) Ninety percent of all computers sold worldwide are IBM or IBM compatible clones. Microsoft's infamous operating system licensing agreements required all personal computer makers to pay Microsoft a royalty on every computer they manufactured, even when no Microsoft product was loaded on the machine.(Kaphing 1) This forced the Personal Computer makers into only using the Microsoft operating system. They could not choose a different Operating System even if they so desired, because at that time all of the Personal Computer clone manufacturers were small start up companies, having very limited capital. They couldn't afford to pay both Microsoft and another company for a different operating system. In 1994 The United States Justice Department barred Microsoft from engaging in this sort of extortion, but it was already too late, the Operating System monopoly had been realized.(PC Week) After the 1994 decision, Microsoft resorted to a new anti-competitive tactic. Yet another clause in the operating system licensing agreement between Microsoft and the computer manufacturers requires the first computer screen any user sees on startup to contain whatever message Microsoft pleases, and to also feature the software content of Microsoft's choosing. This crafty marketing spites the entire concept of competition. It handcuffs the PC hardware manufacturers, who are compelled to submissively promote the Microsoft product line on each and every computer they sell. This is clearly a handicap to third party software vendors like Corel and Adobe. This practice also hurts the consumer by limiting personal choices. Even though there may be far superior products on the market, the PC manufacturing companies are legally obligated to only include Microsoft products. In 1985 Apple Computer was forced into licensing some of their user interface elements to Microsoft, for incorporation into Windows version 1.0. This license was granted only after Microsoft threatened to discontinue development of Macintosh applications. Microsoft was the leading developer of Mac programs, and without their software, Apple would have been doomed to bankruptcy. Apple had no choice but to give in to Microsoft's demands.(Los Angeles Times 2) Microsoft also threatened three computer companies over Internet browser contracts. Compaq, Gateway and Micron computers wanted to replace Microsoft's Internet Explorer with another World Wide Web browser. Not only did Microsoft say no, but court records filed in Washington D.C. stated that Microsoft threatened manufacturers seeking to remove its Explorer browser with a potentially lethal blow - termination of the license for Windows, the operating system that runs almost all personal computers in the world today. In fact Microsoft began proceedings for just such a penalty against Compaq, the world's leading computer maker. Compaq eventually canceled plans to remove Internet Explorer from its Presario computers, but only after intense pressure from Microsoft.(Los Angeles Times 1) In 1995 U.S. Attorney General Janet Reno asked a U.S. District Court in Washington, DC, to place a $1,000,000 dollar a day toll until Microsoft agrees to stop demanding that PC makers license Internet Explorer when they