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MGSC05H3 Study Guide - Midterm Guide: Consent Decree

1 pages46 viewsFall 2017

Department
Management
Course Code
MGSC05H3
Professor
Andrew
Study Guide
Midterm

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Who Decides What Innovations Go Into Your PC?
If you were to ask customers who were to decide what innovations go to what PCs, the decision
would be clear -> they would want to leave it up to the marketplace with competition
The DOJ is trying to force Microsoft to remove the Internet Explorer from Windows for the benefit of
other competitors that are looking to compete with Microsoft by preventing Microsoft from enhancing
its products.
3 years, Microsoft signed a consent decree that allowed Microsoft to develop “integrated software
products”
A PC manufacturer gets a license from Microsoft to ship the OS with IE -> installing Windows 95
does not prevent other competing browsers to be installed with Microsoft but they do not allow
modifying Windows
Microsoft argued that IE was more than just a browser and was complimentary to the OS interface.
Innovation will slow down as developers would be reluctant to write new programs if they were not
sure that the features would be present in all Windows PCs
Examples used were if the New York Times used a section based on the Wall Street Journal or if Ford
Motors used an engine from Toyota -> Microsoft argues they have to preserve a consistent customer
experience when using Windows
While the DOJ is claiming that Windows should not include browsing capabilities, other competitors
are trying to support based operating system services such as printing into their browsers -> Microsoft
argues why they are forbidden to integrate a browser within the operating system?
The biggest winners are consumers -> today, you can buy a PC relatively cheap and more powerful
than a few years ago which were more expensive back then; prices for software all declines
Windows has the most popular OS but the price relatively stayed the same -> they do this so that
developers can develop their own content into this platform and gives customers a low-cost PC ->
they were following a high-volume, low-cost approach.
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