Chapter

Practices II: The Market Division Proposal, Exclusive Contracts, and Java

in The Microsoft Case: Antitrust, High Technology, and Consumer Welfare

Published by University of Chicago Press

Published in print July 2007 | ISBN: 9780226644639
Published online March 2013 | e-ISBN: 9780226644653 | DOI: http://dx.doi.org/10.7208/chicago/9780226644653.003.0005
Practices II: The Market Division Proposal, Exclusive Contracts, and Java

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This chapter addresses three other practices that played a central role in the litigation: Microsoft's alleged proposal to Netscape to divide the browser market, its use of exclusive contracts, and its measures against Sun's Java. It reviews the evidence of what occurred at the key meeting during which Microsoft's representatives proposed a cooperative arrangement to their Netscape counterparts. According to the government, once Netscape rejected Microsoft's offer, Microsoft began its campaign of predation. Microsoft offered not to compete against Netscape in selling a product with a small market and to enter into a joint venture with it in making various complementary products on condition that it not compete against Microsoft in selling a product with a huge market. The case against Microsoft was based on efforts to suppress developing competitive threats in the form of middleware.

Keywords: litigation; Microsoft; Netscape; browser market; Java; middleware; exclusive contracts

Chapter.  15020 words. 

Subjects: Company and Commercial Law

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