Economics of Information & Networks
             Assignment III
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
             Electronic Research Report (e-RR)
             "The Microsoft Case"
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
             Table Of Contents
            
            
             · Synopsis 3
             · Introduction 4
             · Analysis 5
             · Judge's Findings 7
             · Remedies 8
             · Conclusion 9
             · Bibliography 10
            
            
             Executive Summary
            
             This report attempts to outline some of the underlying principles that are relevant in the Microsoft Anti-Trust Case, in which the United States "Department of Justice" as well as 19 other US States has attempted legal action against the Microsoft Company in view of Microsoft's anti-competitive behaviour. This report includes: Claims from both Microsoft and the Department of Justice and economic findings and arguments that are relevant to principles of network economies, specifically those arguments surrounding the controversy behind the 'web-browser battle.'
            
            
            
             Introduction
            
             On the 18th May 1999, The anti-trust division of The US department of Justice (DOJ), followed by several US States, filed their second lawsuit against IT firm Microsoft Corp. This lawsuit accused the software giant of monopolising the market for PC operating systems and leveraging this monopoly power in markets for complimentary goods, including the market for it's web-browser 'Internet Explorer' and as a result ultimately hurting the market of which it operates.
            
             The three main types of allegations from the Department of Justice included:
            
             1. Monopolization of the market for operating systems for PC's
             2. Anti-competitive bundling of 'Internet Explorer' with the Windows operating system.
             3. Anti-competitive contractual arrangements with various vendors of related goods.
             (www.stern.nyu.edu/networks/ms/old.html)
            
             Regardless of final outc...