Antitrust law is full of controversial cases. Should the government restrict businesses? To what extent? Should we prevent businesses from creating monopolies? These questions are addressed in a...

Antitrust law is full of controversial cases. Should the government restrict businesses? To what extent? Should we prevent businesses from creating monopolies? These questions are addressed in a variety of laws regarding antitrust policy. A fairly recent antitrust action by the government involved Microsoft, which was charged with unfair monopolistic practices. The government claimed that Microsoft unfairly restricted its competitors by forcing computer manufacturers to ship the Microsoft Internet Explorer browser along with Windows 95. Answering the following questions about Microsoft can help you think critically about antitrust law.

1. Before you can critically evaluate claims, you need to identify the reasons and conclusion. To get in the habit of paying attention to reasons, try to generate reasons for and against governmental intervention in Microsoft’s practices. Clue: Reread the introduction.Why would Microsoft want to be free of governmental intervention? Why would the government want to regulate Microsoft?

 2. Your roommate makes the following statement: “Businesses have to comply with far too many regulations. They should just be free to make their own rules. Businesses that aren’t fair to the public will not be successful. The government shouldn’t regulate Microsoft.” How would you respond to your roommate? Clue: Even though you have not yet read this chapter, you can evaluate your roommate’s statement. Do you see any problems with this statement?

 3. Microsoft argues that the Internet Explorer browser is simply part of its Windows operating system. Furthermore, Microsoft claims that it is serving its customers by including the Internet Explorer. Customers don’t have to worry about finding or installing an additional Web browser. Thus, the government is essentially hurting the public by regulating Microsoft. Are you persuaded by Microsoft’s argument? Clue: What information might be missing from Microsoft’s argument? What more would you like to know about the Web browser industry?