Microsoft And Government
The economic system of the United States is
modeled after the theory of capitalism.
"Capitalism supports free enterprise
- private business operating without
government regulation (Janda 22)." The
United States does regulate private
businesses. Sometimes special
circumstances arise which threaten to weaken the
overall economic stability
of the country. In order to sufficiently deal with
these situations, the
United States government has passed many laws granting
certain groups the
authority to bring attention to and to stop the threat. This
is extremely
important in terms of its effects on individuals. It protects the
freedoms of
individuals, maintains order and stability, and attempts to promote
equality.
One example of the ability of the United States government to
interfere with
the natural progression of the American capitalist society, is
the existence
of antitrust laws. These laws regulate certain actions of
individuals,
trusts, corps, and combinations of corps in an attempt to prevent
or forcibly
end a monopoly (Gilbert 21). Since 1989, Microsoft has been
repeatedly
accused of violating antitrust laws. Many times these accusations
have led to
an antitrust case being filed against Microsoft. These antitrust
laws and law
suits are extremely important. Despite the verdicts of the cases,
antitrust
laws served their purpose - to maintain the balance of the concepts
of
freedom, order, and equality. Freedom is one of the three main concepts
that
government must pursue for its people. Freedom has two main contexts in
which it
is used which are freedom of and freedom from. "Freedom of is the
absence
of constraints on behavior; it means freedom to do something (Janda
10)."
These types of freedoms guarantee individuals certain liberties
such as freedom
of speech, freedom of religion, freedom of the press, and all
other civil
liberties. These individual liberties are extremely important in
a democracy.
"Freedom from . . . suggests immunity from fear and want."
Freedom
from is also important in a democracy. It guarantees that certain
things cannot
be done to anyone (Janda 10). This is important because it
places limits on the
powers of the government. Another duty that government
must pursue is
maintaining order. Order is "the rule of law to preserve life
and protect
property. Maintaining order is the oldest purpose of government
(Janda
A31)." There is also a third aspect associated with the idea of
order. This
is a belief in maintaining traditional patterns of social
relationships. Both
the preservation of life and the protection of property
are pursued in similar
ways. The most common ways in which the government
attempts to maintain order
are through government legislation, interpretation
of the law, and enforcement
of the law. The final aspect of order is
maintaining traditional patterns of
social behavior, also called social
order. "Social order refers to
established patterns of authority in society
and to traditional modes of
behavior (Janda 20)." Social order is, therefore,
what society feels is
right. For this reason, social order is largely
maintained by the society in
question along with the government. As the
values, beliefs, ideas, etc of a
society gradually change over time, the
social order will change as well. Even
though the social order is
continuously changing, it is not upset. The norms of
the society change,
butthe change is gradual. The social order is upset when
there is a sudden
change in some value, belief, idea, etc of a large number of
the people
within a society that is in contrast with the norm of the society and
causes
the whole society to forget the original social order in order to argue
and
put an end to the new "untraditional" values, beliefs, ideas, etc
that oppose
the old societal norm. Order is a concept that applies to all
systems. Most
of these systems use a completely unique way of maintaining
order.
Similarly, different areas that humans try to maintain order
within may have
other natural ways to better maintain its order. This is why
the government must
work very hard in order to maintain order; it must decide
whether government
intervention is needed or whether allowing the natural
course of events is
appropriate to maintain order in the most proficient way.
The last concept that
is essential for government to pursue is equality. The
concept of equality has
many different senses in which it can be used. In
terms of what government
should pursue, there are two main types of equality,
political equality and
social equality. Political equality is defined as
"each citizen has one and
only one vote (Janda 14)." The fact that all
citizens have one and only one
vote is crucial in order for the American
system of democratic government to
survive. From these two facts, equal votes
for every citizen and a democratic
form of government, one might falsely
assume that political equality in the
United States is in a perfect,
ideological form where there is 100% political
equality. However, this is not
the case. Individuals and groups of individuals
who control a large amount of
some commodity such as wealth, power, or even a
respected family name are
able to use their commodity to influence the political
agenda and the
outcomes of legislation. The average American can simply vote on
election
days and has no more say-so into government affairs except for
possibly
writing a letter to or placing a call to a Representative, both with
only a
minimal chance of having much of an impact. In the meantime, the
wealthy are
also writing letters and making phone calls, but these letters
and phone calls
are different. The letters are accompanied by large amounts
of money, and the
phone calls are connected directly to a Representative. In
this way, the wealthy
are able to influence a large amount of political
decisions despite their small
percentage of the population. Because of these
individuals and groups who use
their wealth or power to unfairly influence
politics, many people argue that
equality in wealth, education, and status
need to be guaranteed in order for
true political equality to occur. This
concept in which everyone is completely
equal is the principle behind the
second type of equality that government must
pursue, social equality. The
success of social equality relies on two main
concepts. The first of these
concepts is equality of opportunity. This
guarantees that everyone will have
an equal chance of succeeding in life (Janda
14). In early America this
ideal was believed by almost everyone. The idea of
laissez faire economics
gave hope to everyone. It was said that everyone in
early America was "born
bourgeois". From this middle class starting
point it was believed that
everyone controlled their own future. Even today,
there is a sense of
optimism in America. Equality of opportunity is not as much
a part of modern
beliefs as in early America, but the belief that with hard work
anyone can
succeed is still a firm belief held by most Americans. For true
social
equality to exist, equality of opportunity had to be complemented by
the
concept of equality of outcome, the concept needed for social equality.
This
concept calls for the redistribution of wealth and status and for the
government
to guarantee benefits such as housing, employment, medical care,
and income
equally to all citizens (Janda 14). Some argue that, if
implemented, these two
concepts would guarantee social equality and would,
therefore, allow the ideal
of political equality to be reached. Whether or
not these concepts would work is
under debate, but in terms of a system that
has already been implemented and has
proven itself to work, the American
system of government has made huge steps in
assuring equality to all of its
citizens. The United States government protects
the balance freedom, order,
and equality for its citizens in a number of ways.
One of these means of
protection is through antitrust laws. Antitrust laws are
federal laws aimed
at preventing individuals, trusts, corporations, or
combinations of
corporations from gaining or maintaining monopolies (Gilbert
27).
Antitrust law was created by the Sherman Act (15 U.S.C.A. $ 1et.seq.)
of
1890. The Sherman Act came in response to a consolidation of a
majority of the
manufacturing and mining companies into nationwide
monopolies. A few of these
monopolies included the Sugar trust, John D.
Rockfeller's Oil Trust, known as
Standard Oil, and J.P. Morgan's Steel
Trust, also called U.S. Steel. The Sherman
Act was purposefully vague and
barely even mentions "restraint of
trade" or restrictions on monopolization.
The act's ambiguoity was
reconciled by the "rule of reason" which gave a
large amount of power
to the Supreme Court allowing them a great deal of
interpretation in ruling on
antitrust cases. In 1914, the Federal Trade
Commission Act was passed. This
created the Federal Trade Commission (F.T.C)
which was given the authority of
administrative interpretation and
enforcement of all antitrust cases (Guide
251-254). The last major
influence that helped shape antitrust law was the
Clayton Act (15
U.S.C.A. $ 12et.seq.) of 1914. The Clayton Act amended the
Sherman Act.
It is used today to make four general business practices illegal.
These
illegal practices are price discrimination, tying and exclusive
dealing
contracts, corporate mergers, and interlocking directorates (Gilbert
27).
Antitrust laws have changed very little since the Clayton Act but
are still used
in antitrust cases today. Microsoft, a computer software
company, has been the
target of many antitrust cases since 1989. Barely
twenty years old, Microsoft is
the second largest company in the world with
an estimated value of $200 billion
as of March 1998 (Levy 38, 40). The
beginning of the antitrust battle between
Microsoft and the government
was late in 1989. Hearing of a deal made between
Microsoft and IBM in
which Microsoft agreed to quit working on Windows so that
IBM could
further enhance its own version of Windows, the F.T.C. began an
investigation
of Microsoft because its deal with IBM was collusion, an illegal
secret
agreement between two companies. By the time the F.T.C. had its case,
the
agreement between Microsoft and IBM was over because of an argument
between the
two. Although no charges were filed, the F.T.C. now had a company
to
investigate. In 1991, the antitrust battle began full swing. The F.T.C.
learned
that Microsoft was talking to Novell about buying it for an estimated
$2
billion. The importance of this possible buy-out was that Novell was the
only
main competititor besides Microsoft in the networking software market.
If
Microsoft would have purchased Novell then it would then it would have
had a
monopoly on the networking software market. It is widely speculated
that
Microsoft would have been immediately regulated by the F.T.C. if it
had closed
the Novell deal. Microsoft escaped yet another antitrust suit by
not buying
Novell, but while working with Microsoft, Novell learned that
Microsoft
"bundled" programs, was using per-processor contracts, and
made
Windows so that it was incompatible with many programs made by other
companies,
information that ended up causing three antitrust cases to be
filed against
Microsoft by the F.T.C. It was not until February, 1993
that the decisions were
made. On both February 5 and 21, 1993 the vote of the
full F.T.C. commission was
deadlocked (www.site Microsoft). Immediately
following this decision, Mary Lou
Steptoe, the head of the F.T.C.'s
investigation of Microsoft, handed the case
over to the Department of
Justice. From now on, Microsoft would be dealing with
the Department of
Justice (Lewyn 32, 34, 36-38). Nothing else happened until
1995. At this
time the Department of Justice got Microsoft to sign a settlement
that
required minor changes in how Microsoft licenced DOS and Windows
to
manufacturers. The settlement was overturned by Federal District Judge
Stanley
Sporkin. Janet Reno had the settlement signed but called for the
Microsoft case
to be reopened. The new investigation found one more alleged
violation of
antitrust law which was the fact that Microsoft installed its
Internet browser
on its newly released Operating System, Windows 95 (Cook
64-66). Between ‘95
and ‘97 the Department of Justice investigated Microsoft,
had Microsoft
officials and lawyers meet with the committee of the Department
of Justice, and
Microsoft was sited with violating the ‘95 settlement
that dealt with
licencing. To date, Microsoft has hardly been affected at all
by antitrust
violation cases, but the most important days in determining the
fate of
Microsoft are right around the corner (Levy 43,44). The Microsoft
antitrust
cases are an example of the government challenging something
perceived as a
threat to the balance of freedom, order, and equality. The
outcomes of these
cases will directly affect the balance of these concepts
among businesses. The
balance of freedom, order, and equality among
businesses is maintained in one
simple way, the use of antitrust laws. These
laws allow the continuous change,
free enterprise, and equality (of outcome)
guaranteed by capitalism, but they
also place certain limits on the freedoms
of businesses and can regulate some
aspects of order. These laws will
ultimately be the reasons for the decisions
concerning the suits against
Microsoft. In theory, the overall balance of
freedom, order, and equality
should remain similar to the way it is now despite
the final rulings on the
cases. If this is not the case, then the present laws
need to be changed. As
a job, governments are supposed to pursue the concepts of
freedom, order, and
equality and to ensure a balance of them to all of its
citizens. Because the
government has this job, it must be willing to exert its
power in order to
protect these concepts but also must act rationally when
ruling on a case
that deals with them. Two dilemmas arise when government
addresses changing
the balance between freedom, order, and equality. These two
dilemmas are
weighing the importance of freedom versus the importance of order
and
weighing the importance of freedom versus the importance of equality.
In
relation to businesses, the government has already decided its stand on
these
dilemmas, the acts establishing antitrust law. Antitrust laws act as
the
government's official position dealing with the balance of freedom,
order, and
equality among competing businesses. If this balance begins to
fail then the
government must act to remedy the situation and restore the
balance. Antitrust
laws could be called the civil rights of businesses. Under
capitalism a business
is guaranteed unchecked freedom in terms of its
economic choices. The government
of the United States, however, felt that
order and equality were critical in
relation to the economy. Antitrust laws
act to guarantee these concepts;
therefore, antitrust laws are what guarantee
the balance of freedom, order, and
equality among businesses in America.
Maintaining this balance is extremely
important to any government. A
government must maintain order simply by the
definition of government. Laws
are made in order to maintain this order which
establish what individuals
cannot do. What is not forbidden is, therefore,
allowed, an individual
freedom. And lastly, when individuals posses different
freedoms, the
government, who's laws are the reason for this inequality, must,
therefore,
address the problem. This illustrates the idea that all governments
must
choose a balance of freedom, order, and equality. The balance of
these
concepts may differ a great deal from one government to another, but
the balance
that is chosen will prove to be a critical factor in determining
the future of
that
government.