in the case of

U.S. versus Microsoft

Findings of fact:

1.  Microsoft has a monopoly in operating systems.

2. Windows and Internet Explorer are at the present time two separate products.

3.  The market for internet browsers is highly concentrated, with the market about equally divided between the defendant and Netscape.

4.  Microsoft attempted to conspire with other firms in the computer hardware and software market to at least preserve its monopoly position in a variety of internet products.

5.  Microsoft priced its browser in a predatory fashion. 

6. Micrsoft tried to use its monopoly power in operating systems to foreclose the browser market to Netscape.

Ruling:  The prosecution has shown that Microsoft has violated section 2 of the Sherman Act.

Remedy:  Microsoft may no longer try to coerce hardware makers to give Internet Explorer exclusivity on their PCs' desktop.  The Windows operating system must be made transparent enough to independent software developers that they may develop products that are competitive with the Internet Explorer browser and can run in a Windows environment.  Microsoft must make IE and Windows available as separate products.   The two products must be priced so as to reflect their true long run average total cost.