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Traditionally, governments have dealt with natural monopolies by granting an official monopoly to a business and introducing regulations placing substantial controls on the behaviors in which that business is allowed to engage. .
Microsoft first became involved with the United States government in July of 1990, when the Federal Trade Commission began investigations of Microsoft after the company announced plans to jointly develop operating systems with IBM. When these plans dissolved, the FTC refocused their efforts towards Microsoft's general business and marketing tactics. Two years later, the four-member FTC team voted 2-2 on a proposal to instigate a legal injunction against the company. Six months later, the team reached another deadlock, thereby ending their interest and involvement in the legal issues concerning Microsoft's business practices.
In 1994, Microsoft signed an agreement with the Department of Justice. It stated that Microsoft could not require hardware manufacturers who license use of its operating system to license other software applications, but could produce and license integrated products. In 1995, the company released Windows 95, which integrated its Internet browser with the operating system. The Department of Justice began investigations of Microsoft months later, claiming that the browser was actually a separate product. They also made accusations that the company refused to contract with hardware producers who would not include its Internet Explorer software. Allegedly, purchasers had no choice but to comply in order to remain competitive, due to consumer opinions that Windows 95 was a technologically superior operating system. This would eliminate many competitors in the Internet browser market and create a virtual monopoly. Microsoft, and its CEO, Bill Gates, denied these exclusive dealing contracts, and argued that it was in compliance with the Department of Justice.