Prosecutors suing Apple in a major new antitrust case have drawn parallels to the landmark 1998 case against Microsoft, suggesting that the Microsoft case paved the way for Apple's growth and dominance in the tech industry. The government's arguments against Apple are expected to reference the legal precedent set by the Microsoft case, which accused Microsoft of creating a monopoly through its operating systems and stifling competition from companies like Netscape and Apple.
The Microsoft case was a complex and lengthy legal battle that initially sought to break up the company into separate entities for its operating system and software production. However, after a series of appeals, a settlement was reached in 2001 that required Microsoft to share parts of its source code with third parties to encourage more development. Despite the settlement, Microsoft remained a major player in the tech industry.
The Department of Justice has highlighted the 2001 Microsoft settlement as a key factor in Apple's subsequent success, pointing to Apple's ability to develop tools like iTunes for Windows PCs. Building on this momentum, Apple went on to revolutionize the tech industry with products like the iPhone and the App Store, solidifying its position as a leading tech company.
Now, the DOJ and 16 attorneys general are targeting Apple with similar antitrust arguments used against Microsoft, accusing Apple of stifling competition in various tech sectors. Apple has vowed to contest the lawsuit, arguing that it could set a dangerous precedent by allowing the government to dictate technological innovation.
Notably, the government has not secured a significant tech antitrust victory since the Microsoft case, although it is pursuing a similar strategy in a case against Google's parent company, Alphabet. The trial against Alphabet concluded in November, with the judge yet to deliver a ruling.
Microsoft was mentioned 26 times in the recent complaint against Apple, underscoring the enduring influence of the Microsoft case on modern antitrust litigation in the tech industry.
