Note on Application of the Antitrust Laws to the New Economy: An Analysis of United States vs. Microsoft Corp. Case Solution
The decision that was made by the Court of Appeals in the US, which took place in the year 1991, emerged from Microsoft’s efforts to improve Internet Explorer and to supplant Netscape's Navigator Internet Web browser as the top browser.
This case includes a thorough discussion of the use of the U.S. antitrust laws (Sections 1 and 2 of the Sherman Act, in particular) to technologically dynamic markets characterized by network effects. Problems addressed include: 1) the legality of exclusive dealing arrangements, 2) what constitutes prohibited monopolization (including how courts identify the relevant market and what makes up anticompetitive actions), 3) predatory pricing and the rules of impossibility, 4) the essential facilities doctrine, 5) the exercise of intellectual property rights (like patents or copyrights) as a business reason, and 6) what makes up an illegal attempt to monopolize. The U.S. Court of Appeals' conclusion is summarized, and extensive excerpts from the opinion appear as an exhibit.
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
PUBLICATION DATE: September 20, 2001 PRODUCT #: 802090-HCB-ENG
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