[Spirit]

Microsoft on the web

A small computer serving as a server for Microsoft’s first implementation of internet was the beginning for Microsoft on the web in 1993. Nine short years later, serving five million people daily, Microsoft website has become one of the largest sites online.
How did Microsoft grow so quickly is only nine years is no wonder. Internet time runs much faster than normal time. Eight years may be viewed as cat years, seven years for every year. Windows NT 3.1 was the first implementation of the server, and html became the language online. With windows 95 Microsoft picked up online, updating first monthly, then weekly, then daily. The servers doubled very often to meet the demand of millions of people trying to get online.
Microsoft shortly released the ever so popular Internet Explorer and started using unethical practices to ruin their competitor, Netscape Navigator. Shortly enough Microsoft was slapped with a lawsuit from Netscape charging them with using illegal practices against competition.
Microsoft continued to grow daily and with every new version of Windows, it added Internet Explorer as a standard browser. On the web, Microsoft became a internet service provider, and continued to sell software over the internet up to present. (Dave Kramer, 1-3)

Microsoft Antitrust Lawsuit

Beginning in the early 90s, and still not resolved, the Microsoft Antitrust lawsuit has become one of the biggest events in the modern world. As Microsoft grew, it monopolized by seizing power and acquiring rival companies. The problems that could come out of this monopoly are indescribable. If Microsoft holds a monopoly, this would only mean the rise of prices and suppression of ideas. United States Government took the problem in their hands to start the biggest lawsuit in the history of the world. Losing millions of dollars on the antitrust lawsuit, both Microsoft and United States government have not yet reached a settlement. It all started when the Federal Trade Commission noticed a gap in competition within the computer field. (U.S. v. Microsoft Timeline, 1)

The Investigation begins

Beginning in May 30th 1990, the Federal Trade Commission began an antitrust investigation of Microsoft. This agency claims that Microsoft inserted hidden codes within their applications to hinder the competitors software. The Federal Trade Commission could not, however, continue the case, so the Justice Department picked it up.
In 1994 Microsoft and Justice department reach a settlement that requires a lot of changes within Microsoft, but U.S. District Judge Stanley Sporkin rejects it, pointing out the problems. The case begins to drag on, but when Microsoft tries to acquire Intuit Inc, maker of a famous finance program, Justice Department immediately sues Microsoft. Shortly thereafter, Microsoft abandons the purchase.
The Justice Department doesn’t try to block Windows 95 release, meanwhile, Caldera Inc. files an antitrust lawsuit against Microsoft, stating that Microsoft tried to block rival DOS operating systems from reaching the light of day. Soon, the Justice Department begins to look into the bundling of Internet Explorer browser with Windows 95.
While allowing Microsoft’s purchase of the WebTV Networks, the Justice Department objected Microsoft’s $150 million investment in Apple Computer Inc. Then the Justice Department sued Microsoft once again, claiming that the company required computer developers to install Internet Explorer browser if they want to license Windows 95. (Joe Wilcox, 1-2)

United States begins the antitrust trial

European Commission announced the start of their own Microsoft probe. Shortly thereafter Texas began to file suit against Microsoft, as did 19 other states. Judge Jackson ordered Microsoft to stop the requirement of Internet Explorer bundling. Microsoft appeals the order and tries to make a deal by offering computer makers more options, but The Justice Department rejects the proposal, stating that the options Microsoft gave don’t meet the requirements.
Microsoft and the Justice Department reach a settlement as a Texas judge sides with Microsoft. Microsoft Chairman Bill Gates appears before congress and testifies on the company’s practices. (Microsoft “monopoly” debated in senate, 1-3)
As Bill Gates, President of Microsoft, gave his first speech before Congress, he addressed his company’s huge expansion was due more to rapid changes in the industry than trying to make a monopoly. He also gave quite a few examples involving some of his services.
At the hearing, turning to address the audience, Barksdale called for a show of hands to make his case against Gates' company.
"How many of you use Intel-based PCs in this audience, not Macintoshes?" he asked. Several hands went up. Barksdale continued: "Of that group who use PCs, how many of you use a PC without Microsoft's operating system?" When all the hands went down, Barksdale turned to the Senate panel and said, "Gentlemen, that is a monopoly." (Microsoft “monopoly” debated in senate, 4)
Following the testimony, twenty U.S. states sue Microsoft, but the Federal court rules that Microsoft did not violate the government agreement by bundling Internet Explorer with Windows 95.
Five computer executives complained that Microsoft has been using illegal and unfair business practices, yet Microsoft called the lawsuit “completely groundless.” Microsoft rejects turning over the code or Bill Gates for questioning to the government. The Justice Department begins another investigation on Microsoft to determine if it used illegal business practices against Intel or Apple. Microsoft’s requests to throw out the two lawsuits and to limit the evidence used in the trial are rejected by Judge Jackson. The pre-trial tensions tense up, yet both sides continue the lawsuit.
As the trial begins on October 19th, 1998, Microsoft’s Internet Explorer surpasses Netscape’s Navigator in browser market shares. After both sides rest their case, they can’t reach an agreement after settlement talks. After each side gets limited to three witnesses only, both deliver their arguments. After massive amounts of closing statements on September 21st 1999, in the preliminary ruling, Judge Jackson states that Microsoft has a monopoly in the Windows operating system and uses this monopoly to hurt competitors, consumers and computer producers. Finally on December 6th, the Justice Department states that Microsoft violated the antitrust laws in at least four ways.

U.S. proposal

The following year, on April 28th U.S. files its proposal to break up Microsoft into two companies. Microsoft files a counterproposal pointing out the problems with breaking up the company, but the judge declines it. The Judge issues the final ruling on June 7th, 2000 stating that Microsoft will be broken up into two companies, one for applications and the other for the operating system. Microsoft appeals, and tries to get the case to the Supreme Court, but is denied and the case is sent back. As Microsoft’s struggle continues to stay a single company, The European Union drops their case against Microsoft, after Microsoft altered some contracts.
The case drags on to 2001, as a new judge and court is appointed, and the Justice Department stating that it does not want to break up Microsoft. The Justice Department, however, does come to a settlement. The agreement is that Microsoft will have a new set of rules to operate under and the companies as well as the competition will receive parts of the code to insure that everything works and no more illegal antitrust is done. Meanwhile, nine of the twenty states announce that they will not settle for this appeal and will continue to take the case to court. Microsoft, of course, offers the nine states money to pay for all the costs of lawyers and more than one billion dollars in software and hardware to public schools. The Federal judge rejects such a vile proposal as the states continued to pursue tougher laws for Microsoft and more supervised sales.
In 2002, Microsoft continues to have an illegal monopoly, as AOL Time Warner and Sun Microsystems sue Microsoft. Even as the settlement deal process comes through, RealNetworks and the makers of palm-based devices sue Microsoft and claim it continues the use of unethical practices.

Bill Gates testimony

Bill Gates gave his first testimony on Tuesday April 23rd, for the first time in the four years of antitrust case to the nine states that continued to sue Microsoft. As no apologies were made, he used a slide show and short replies as he patiently answered questions.
He then pointed out what the removal of his Internet Browser would do to Windows. “This shows that if you move this block of code, other functions are degraded in the most extreme way,” Bill Gates explained. Even as he was confronted with a 1998 e-mail memo, where he clearly stated “We have to stop putting any effort into this,” referring to Microsoft Documents problem to work on rival Web Browsers.
The Bill Gates that appeared for questioning was a clam and quiet man, who answered politely to every question directed at him. It was nothing compared to the Bill Gates of 1998, when he appeared before the congress.