Реферат: Micro Soft

One day of closing arguments.

Nov. 5, 1999

Judge Jackson rules that the software company does indeed hold a monopoly thanks to its pervasive Windows operating systems, that it abused its monopoly power and that this abuse has harmed potential competitors and consumers. The judge’s finding of fact is the first of three rulings that will determine Microsoft’s fate.

April 3, 2000

Judge Thomas Penfield Jackson rules that Microsoft violated the Sherman Antitrust Act, and is also liable in 19 state suits. Microsoft said it will appeal.

May 24, 2000

Judge Jackson confirms MS’s violations of the Sherman Antitrust Act, and rules to split up the company.

June 20, 2000

Judge Jackson granted a request to stay the conduct remedies until a higher court acts and sent the case to the Supreme Court for consideration.

IV. The Proposal

The Government proposed the following to control Microsoft and bring them down a notch or two:

Microsoft shall be split into two companies, one for its Windows operating system and one for software applications, such as Microsoft Office and Internet Explorer. The government is requesting that Microsoft would have to submit a breakup plan four months after the final ruling of U.S. District Court Judge Jackson. The two separate companies brought into existence would be prohibited from merging or forming any joint ventures with each other. Separate boards of directors for the two companies would be established and kept apart. The government requested that the terms of the breakup plan would last ten years. Other controlling, yet temporary restrictions would also be imposed on Microsoft until the appeals process was completed.

In addition to breaking Microsoft in two, the Justice Department would demand the following restrictions: 1) Temporary uniform standards would have to be adopted for licensing the Windows operating system to other makers of personal computers. 2) Personal computer makers would be allowed to modify the appearance of the Windows operating system. 3) No actions of retaliation could be taken by the two companies against those who gave evidence to the federal government against Microsoft or submitted testimony. 4) A temporary ban would be placed on Microsoft to prevent any threats or acts against personal computer makers.

Here is an illustration of what the make up of a Microsoft Applications Company might look like: Microsoft Office, BackOffice, Internet Explorer, Mobile Explorer, Outlook Express, Frontpage Express, Net Meeting, and other browsers, e-mail clients and related tools. Slate online magazine, Expedia travel network, the Microsoft network, MSNBC. Streaming audio and video client and service software, media player, voice recognition software, Java virtual machine software. Developer tools, consumer hardware, transaction server software, XML servers and parsers, Microsoft Management Server SNA server software, indexing server software, Internet Information Server. This would also extend to investments owned by Microsoft in connection with partners, joint venturers, original equipment makers, independent hardware vendors, independent software vendors, distributors, developers, and promoters of Microsoft products or in other information technology businesses.

And, the other new company – here is what the make up of a Microsoft Operating Systems Company might look like: Windows 95, Windows 98, Windows 2000 Professional, and their successors, including Windows operating systems for personal computers code-named “Millennium,” “Whistler,” “Blackcomb,” and their successors. Development, licensing, promotion and support for computing devices, including personal computers, other computers based on the Intel x-86 or competitive microprocessors such as servers, handheld devices and television set-top boxes.

This would of course also include the personnel, facilities and other assets associated with those businesses. It would be able to hold a license to continue distribution of the existing Internet Explorer code, but it will have to develop its own browser in the future under new strategies.

V. Microsoft’s Response

Obviously, Microsoft was less than happy with the proposal put forth by the government and did not intend to back down. They saw the DOJ’s proposal as too harsh and overly extreme under the circumstances. Microsoft spokesman, Jim Cullinan likened the proposal of giving up their intellectual property to competitors like Sun and Oracle, to “?forcing Coke to share its secret formula with Pepsi and every other major soft drink vendor in the country.” And CEO Steve Ballmer called the government’s plan to split the company like “?splitting up a rock band because of its popularity.”

At the Judge’s request, Microsoft tendered their own proposal to the courts on May 10, asking that the Judge punish them in the area of their business conduct, but not break the company in two. Critics viewed Microsoft’s counter proposal of their own judgment as not much more than a slap on the wrist and do not expect that the courts will accept it. Ironically, if Microsoft had intended to actually do some of the “nice play” techniques that they are now proposing, maybe they wouldn’t be on trial. So far, the government’s opinion is that Microsoft has merely come up with a transparent cosmetic remedy that will not have much impact on the competitive issues. “What remedy does Microsoft propose to undo the damage to competition caused by its past illegal conduct?” the government wrote, “Nothing.”

Alternatively, Microsoft’s counter proposal was viewed by many as being very soft. Listed here below are the fundamental pieces:

1) They [Microsoft] will ensure that Microsoft will not cancel or refuse to grant a Windows license agreement to a PC maker because the PC maker ships or promotes other non-Microsoft software.

2) They will allow PC makers to include as many icons for non-Microsoft software as they choose on the Windows desktop.

3) They will allow computer users to choose which Web browser they want to use during Windows’ initial boot sequence.

4) They will allow PC makers to remove the Internet Explorer web browser icon from the Windows desktop and start menu.

5) They will refrain from promoting another company’s product on the Windows desktop in exchange for that company’s agreement to limit its distribution of non-Microsoft software.

6) They will ensure that independent software vendors have timely access to technical information called “application programming interfaces” needed to write Windows applications.

7) They will continue to license a predecessor operating system after the release of a new version of Windows so that computer makers could use the old one if they didn’t like the features in the old one.

8) Microsoft has proposed that all of the above restrictions remain in place for four years instead of the ten as requested by the government, stating that nothing in the record would justify such a long term for relief.

In their filings made with the U.S. District Court with their own proposals, Microsoft asserted that Judge Jackson’s previous findings did not warrant the extreme measure of dividing the company in two. “In stark contrast to the relief sought in its complaint, the government seeks to rip apart the company that until recently had the largest market capitalization in the world – an extreme remedy not even hinted at in the government’s complaint,” stated one of Microsoft’s last filings. Microsoft claimed that the DOJ’s proposed solutions are too harsh and still maintains that they should be trusted and will make good on their proposed remedies. Unfortunately, had they gone this direction in the first place when the original complaints started cropping up, maybe they could be trusted to keep their word.

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