Antitrust Case Against Microspft Government Term Paper

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(discuss them and then choose one that would possibly work)

One possible solution for this anti-trust problem, which is currently proposed by authorities, is that Microsoft should allow its competitors to access its information database. In this way, the competition could build new applications that are compatible with the Microsoft operating systems - Windows so would not be affected by the Microsoft strategy to develop an integral and connected line of products. Another solution could be the individual taxation of Microsoft due to its market power. In this case, the taxes that could be as high as 10% from the total profits and would unfairly tax the advantage taken in time by Microsoft. The money for this tax could be otherwise used by Microsoft for development plans, or why not for resolving social aspects - the poverty reduction of third world countries.

Another answer proposed by analysts in this case was to leverage Microsoft with a tax of about 10 billion dollars, then it should be allowed to compete freely without the monopoly interdiction. The effect is similar with the one from the previous solution proposed in this document. It would negatively reward Microsoft for its ability to develop its business up to a market share of 90%.

The most obvious solution would be to let things as they are. Market-based economies is the key to durable development, and imposing taxes on Microsoft for its impressive market share, technology and performing and wide-usage products would be non-sense.

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Competition should not be allowed by authorities to penetrate the informational system of Microsoft, because this will be like a chef offering its famous recipes to competitor restaurants. It would be immoral and unjust from the economic point-of-view. Government may offer indirect incentives for innovation in this field (tax cuts, non-reimbursable government funds, a large pool of it specialists), and come up with solutions for creating institutions that could freely compete with Microsoft.

3. Are contemporary antitrust laws appropriate in today's economy? Or are there ways the laws could be changed to better fit our contemporary society.

Anti-trust laws must constantly monitor companies that use non-ethical methods of earning market share. Among them, we could mention the issue of restricting free trade, limiting production so as to produce an artificially high demand for a particular product and therefore producing a price boom. But up to Microsoft case, where it was the corporate decision to launch several programs into a single application, it is a long way to go. Competition law should change so as keep pace with the continuous development pace of the global economy.

Bibliograhy:

1) Lemos, Robert. CNET News, 2003-06-10. Retrieved on 2007- 02-05

2) Mace, Michael. www.pa.msu.eduarchived from apple.com, February 9, 1995

3) Rebello, Kathy. www.businessweek.comBusiness Week, 1997-06-15. Retrieved on….....

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