- Short-Run Decisions vs. Long-Run Decisions:
Go online and research antitrust laws. What is the difference between the Sherman Act (1890) and the Clayton Act (1914)?
By the end of 1995, Netscape’s share of the Internet browser market grew to 90% by continually upgrading its product to include new features such as e-mail and video capabilities. Shortly thereafter, Microsoft introduced and distributed a new version of its operating system that included its Internet Explorer (IE) browser at no cost.
In addition, Microsoft allegedly imposed several restrictions on original equipment manufacturers (OEMs), Internet service providers (ISPs), and Internet content providers (ICPs) with the intention of:
(a) Ensuring that almost every new computer had a version of Internet Explorer, and
(b) Making it more difficult for consumers to get Netscape on new computers.
On May 18, 1998, the government filed a complaint in court against Microsoft. Based on what you have learned in this chapter and the PPT slides, briefly discuss the merits (if any) of the government’s complaint against Microsoft. Was Microsoft potentially violating the Sherman Act or the Clayton Act?