At the point of closure of the FTC investigation, the US Justice Department began its own investigation into the practices of Microsoft. This investigation came to a co

An additional, perhaps even larger, threat to Microsoft came from Sun Microsystems and its development of its Java language. Java, also platform independent, could operate on any computer containing the Java software. Functioning almost as an operating system in itself, Java was seen by Microsoft as another product that could lead Windows to obsolescence. The collusion of Netscape and Sun to incorporate Java into Navigator made the threat to Microsoft even greater and prompted a memo from Bill Gates stating that Java was the major threat that existed to Windows. Microsoft commenced a similar strategy to combat Java, as they did with Netscape Navigator. After obtaining rights from Sun to license and distribute Java with the Windows operating system, Microsoft developed a similar version of Java with changes that prevented previous programs from running under Microsoft’s version. The previous strategy of making Internet Explorer into the dominant browser software worked concurrently in this instance, as the Microsoft version of Java, distributed with Windows, became the software version most developers used as the guideline by which to develop new programs.

A series of actions brought against Microsoft by the Department of Justice (DOJ) followed this decree, as the DOJ accused Microsoft of violating the terms of the decree by requiring Internet Explorer (IE) to be installed on all computers loaded with Windows 95. In 1997, a US District Judge issued a preliminary injunction that forced Microsoft to stop requiring PC makers to install Internet Explorer on computers, but Microsoft reached a partial settlement with the DOJ when it agreed to hide or remove IE in new versions of Windows 95.

Given the opportunity to appeal the judge’s decision to break up Microsoft into two separate companies before actually implementing such action, Microsoft presented a defense of legal precedence and resistance against competition from Netscape and Sun.

Section 1. Trusts, etc., in restraint of trade illegal; penalty

Some topics in this essay:
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