United States v. Microsoft Corp.

Seal of the Court of Appeals for the District of Columbia

US v. Microsoft Bill Gates Color

United States v. Microsoft Corp. (253 F.3d 34 (D.C. Cir. 2001)), also known as the Microsoft Antitrust Case, was a set of consolidated civil actions filed against Microsoft Corporation by the United States Department of Justice (DOJ) and 20 U.S. states. Alleging that Microsoft had abused monopoly power on Intel-based personal computers in its handling of operating system and web browser sales. The issue central to the case was whether Microsoft was allowed to bundle its flagship Internet Explorer (IE) web browser software with its Microsoft Windows operating system. Bundling them together is alleged to have been responsible for Microsoft's victory in the browser wars as every Windows user had a copy of Internet Explorer. It was argued that this restricted the market for competing web browsers (such as Netscape Navigator or Opera) that were slow to download over a modem or had to be purchased at a store.

Background

Microsoft's dominance in the PC market was challenged in the mid-1990s by the rise of the Internet, with the web browser gaining importance as a primary means of accessing information and conducting transactions. Netscape's Navigator was the dominant browser before the release of Internet Explorer. The competition between Internet Explorer and Netscape Navigator is often referred to as the "browser wars".

Trial

The trial, presided over by Judge Thomas Penfield Jackson, began on May 18, 1998, and concluded on June 7, 2000, with a ruling that Microsoft had violated parts of the Sherman Antitrust Act by maintaining a monopoly in the PC market, attempting to monopolize the web browser market, and unlawfully tying its web browser to its operating system. Judge Jackson issued a final judgment on April 3, 2000, which ordered the breakup of Microsoft into two separate units, one to produce the operating system, and the other to produce other software components.

Appeal

Microsoft immediately appealed the decision. On June 28, 2001, the United States Court of Appeals for the District of Columbia Circuit unanimously reversed the breakup order but affirmed the court's finding of monopolization. The appellate court criticized Judge Jackson for not maintaining judicial decorum and for discussing the case with the media while it was still pending. The case was then remanded for consideration of an appropriate remedy under a different judge, Colleen Kollar-Kotelly.

Settlement

The DOJ and Microsoft reached a settlement on November 2, 2001, which was approved by Judge Kollar-Kotelly on November 1, 2002. The settlement required Microsoft to share its application programming interfaces with third-party companies and appoint a panel of three people who would have full access to Microsoft's systems, records, and source code for five years in order to ensure compliance.

Impact

The case was seen as a landmark event and had a significant impact on how governments regulate monopolies and conduct antitrust litigation against technology companies. It has been credited with fostering an environment that allowed for the growth of the internet by making the market more competitive for web browsers, which led to innovations in web technologies.

See Also

• Antitrust law
• Monopoly
• Sherman Antitrust Act
• Technology company