re of the market. This proves that Microsoft is not the only seller of operating systems as the DOJ claims. The DOJ's complaint states that, "To protect its valuable Windows monopoly against potential competitive threats, and to extend its operating system monopoly into other software markets, Microsoft has engaged in a series of anticompetitive activities. Microsoft's conduct includes agreements tying other Microsoft software products to Microsoft's Windows operating system; exclusionary agreements precluding companies from distributing, promoting, buying, or using products of Microsoft's software competitors or potential competitor; and exclusionary agreements restricting the right of companies to provide services or resources to Microsoft's software competitors or potential competitors." The DOJ claims Microsoft has engaged in predatory (pricing) conduct by giving away its Internet Explorer browser. Predatory pricing is an exclusionary act by which a firm, in order to create or maintain a monopoly power, lowers its prices below the profit maximizing level in order to push rival firms out of the market or prevent them from ever entering the market. In the long run, this results to be a detriment to consumers. Once the competition has left the market, the company can then raise prices to a supracompetitive level and recoup the losses suffered by predatory pricing. This results in higher prices for the consumer. With no alternative product available, the consumer is left with no choice but to pay the high price. Microsoft Internet Explorer's largest competitor is the Netscape Navigator browser. Paul Maritz, Microsoft's group vice president in charge of the Platforms Group, was quoted in the New York Times as telling industry executives (regarding Netscape): " We are going to cut off their air supply. Everything they're selling, we're going to give away for free." Netscape Navigator can now also be downloaded free of charge. M...
