The main topic of my research paper will be the potential division of Microsoft by the Justice Department. A complete understanding of Microsoft’s history is crucial to fully grasp the ongoing trial. Without a proper comprehension of their past, it would be challenging to form an informed opinion on whether or not Microsoft should be separated.
Bill Gates (also known as William H. Gates III) and Paul Allen established Microsoft in 1975, creating the initial version of the BASIC programming language for the Altair, which was the first personal computer. Later on, Microsoft licensed BASIC to different companies such as Apple Computer, Commodore, and Tandy Corporation. In 1977, Microsoft unveiled its second language software called Microsoft FORTRAN.
In 1980, Microsoft achieved a significant breakthrough when IBM selected them to develop the operating system for the IBM PC. This moment was crucial in Microsoft’s history since they did not have an existing operating system at that time. However, they were able to obtain one from a programmer in Seattle and renamed it MS-DOS (Microsoft Disk Operating System). During their meeting with IBM, Bill Gates convincingly convinced them to allow Microsoft to license MS-DOS to other computer manufacturers. Consequently, the market became inundated with numerous IBM PC clones we see today while establishing MS-DOS as the standard operating system for personal computers and significantly driving Microsoft’s growth.
In 1984, Microsoft was one of the first software companies to develop applications for the Apple Macintosh. Prior to this, they had already created various software like Word, Excel, and Works. This early foray into Macintosh development highlighted their proficiency in Graphical User Interface (GUI) application development.
In 1985, Microsoft introduced the inaugural version of Windows, which was built on DOS and had a graphical user interface. In 1987, Windows 2.0 was released with improved functionality and a fresh visual design. This was followed by Windows 3.0 in 1990, along with versions 3.1 and 3.11. The widespread adoption of the Windows 3.x series made it the most prevalent operating system at that time.
Additionally, in the same year, Microsoft achieved another milestone by becoming the first personal-computer software company to generate $1 billion in yearly sales.
In 1990, Microsoft was investigated by the Federal Trade Commission (FTC) for alleged monopolistic business practices. However, the case against Microsoft was later dropped. In 1991, Microsoft and IBM decided to separate. IBM decided to independently pursue the OS/2 operating system, which had previously been a joint venture with Microsoft. Meanwhile, Microsoft prioritized Windows over OS/2. Regrettably for IBM, this decision led to the failure of OS/2.
In 1993, Microsoft and the Justice Department reached an agreement regarding the sales and licensing of Microsoft’s operating system software to computer manufacturers. Consequently, Windows 95 was ultimately launched in 1995 and became an immense achievement.
Microsoft has recently entered the media, entertainment, and communications industries. They introduced Windows CE in 1996 as a portable operating system for handheld personal computers. However, in late 1997, the Justice Department accused Microsoft of violating its 1994 agreement by requiring computer manufacturers to include Internet Explorer when installing Windows 95. Microsoft defended itself by asserting their right to enhance Windows’ functionality by integrating Internet-related features into the operating system.
Sun Microsystems sued Microsoft in 1997, accusing them of breaking a contract related to the usage of Sun’s Java programming language. The lawsuit alleged that Microsoft had integrated features into their software that were only available on Windows. In November 1998, a federal judge ruled in favor of Sun Microsystems, leading to an appeal from Microsoft. However, early in 1998, Microsoft settled the antitrust case by permitting computer manufacturers to offer a version of Windows 95 without Internet Explorer. Furthermore, in May 1998, the Justice Department and various states initiated extensive antitrust lawsuits against Microsoft for engaging in anti-competitive practices. The antitrust trial then began in October 1998.
Knowing the history of Microsoft is crucial to form an informed perspective on whether or not Microsoft should be subjected to a breakup. Our journey begins in the early days of Microsoft and extends until just prior to the initiation of the antitrust trial.
Reference
- Encarta Encyclopedia 2000 Online www.encarta.msn.com “Microsoft Corporation”
