Page 206 - DMGT401Business Environment

Unit 8: Legal Environment

the Commission, then, the Commission may afford the appellant or the complainant, as Notes
the case may be, another opportunity of being heard before a final decision is taken or
take any other appropriate action as it may deem fit.
4. The appellant or the complainant, as the case may be, may seek the assistance of any
person in the process of the appeal while presenting his points and the person representing
him may not be a legal practitioner.

Order of the Commission

Order of the Commission shall be pronounced in open proceedings and be in writing duly
authenticated by the Registrar or any other officer authorized by the Commission for this
purpose.

Case Study Microsoft held Guilty of Breaking Antitrust Laws

Federal judge has ruled in a landmark decision that Microsoft Corporation
seriously violated US antitrust laws, exposing the software giant to harsh penalties
Athat could even result in its break-up.

District Judge Thomas Penfield Jackson yesterday found that the Redmond, Washington
based firm broke the law by abusing its monopoly power in personal computer operating
systems, doing “violence to the competitive process.”
Microsoft promised to appeal once the trial ends months from now and was confident it
would ultimately prevail. The company’s stock, down the entire day, improved slightly
after verdict but was still off $ 15-3/8 at $ 90-7/8 in after-hours trading.
Judge Jackson’s most serious conclusion was that Microsoft violated Section 2 of the Sherman
Antitrust Act by using its might against other companies, especially Netscape
Communications, its rival in the 1990s for control of the internet browser market.
Netscape’s market share withered under Microsoft’s attack and it sold out to America
Online during the early part of the trial. “Microsoft maintained its monopoly power by
anti-competitive means and attempted to monopolies the web browser market,” wrote
Judge Jackson in his 43-page ruling.

While it is legal to gain a monopoly through skill or lucks, it is illegal to use that power
to perpetuate a monopoly by preventing competitors from springing up.

Representatives of the justice department and the 19 States that brought the case, left open
the possibility that they would seek the strongest remedy available for such a serious
violation – a break-up of the company. Alternatively, they could seek changes in the
company’s business practices.

60,000 Crore Gone as Markets Crash
The panic on the country’s stock markets over the last few days today took a dramatic turn
for the worse with investors losing a massive 60,000 crore in the largest meltdown in the
country’s stock market history since the Harshad Mehta bubble burst in the early ’90s. The
Bombay Stock Exchange’s Sensex fell 361 points or lost over 7.2 per cent of its total value
Contd...

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