retailer had installed all of the Microsoft operating systems that it had to sell. In addition to specifying a minimum number of operating systems that a vendor had to buy, Microsoft also would sign contracts with the vendors for long periods of time such as two or three years. In order for a new operating system to gain popularity, it would have to do so quickly, in order to show potential buyers that it was worth purchasing. With Microsoft signing long term contracts, they eliminated the chance for a new operating system to gain the popularity needed. The second issue that Microsoft had to face was when they were accused of tying. Tying is the practice in which Microsoft would use their leverage in one market area, such as graphical user interfaces, to gain leverage in another market, such as operating systems, where they may have stiff competition. In the preceding example, Microsoft would use their graphical user interface, Windows, to sell their operating system, DOS, by offering discounts to manufacturers that purchased both MS-DOS and Windows, and threatening to not sell Windows to companies who did not also purchase DOS. In the end, Microsoft decided to suck it up and sign the settlement agreement. In signing the agreement, Microsoft did not actually have to admit to any of the alleged charges, but were able to escape any type of formal punishment such as fines and the like. The settlement that Microsoft agreed to prohibits it, for the next six and a half years from: Charging for its operating system on the basis of computer shipped rather than on copies of MS-DOS shipped, imposing minimum quantity commitments on manufacturers, signing contracts for greater than one year, tying the sale of MS-DOS to the sale of other Microsoft products. Although these penalties were placed to put an end to all of Microsofts evil practices, some people thought that they were not harsh enough and that Microsoft should have been split up...
