If you’re following the huge antitrust case against Google, you might hear another tech giant’s name popping up constantly: Microsoft. Why are lawyers and experts talking about a case from nearly 30 years ago? Because that legendary battle, U.S. v. Microsoft, set the stage for what’s happening with Google right now.
What’s Happening with Google?
Quick recap: A US judge has already ruled that Google acted like an illegal monopoly in the search engine market. Now, the court is in the “remedies” phase (as of late April 2025), figuring out what penalties Google should face. The US Department of Justice (DOJ) wants big changes, maybe even forcing Google to sell its Chrome browser. Google, naturally, disagrees.
Flashback: The Microsoft Showdown (Late 90s)
Rewind about 25 years. Microsoft was the undisputed king of tech, thanks to its Windows operating system dominating personal computers. The DOJ sued Microsoft in 1998, accusing it of unfairly using its Windows monopoly to crush competitors, particularly the web browser Netscape Navigator.
The big issue? Microsoft bundled its own Internet Explorer (IE) browser with Windows. They were accused of being a “bully,” making deals to keep IE on computers and push Netscape out. Think of it like a supermarket chain owning the only brand of soda allowed on its shelves. One Microsoft exec was even famously (though later denied) accused of saying they’d “cut off Netscape’s air supply” by giving IE away for free.
The judge at the time, Thomas Penfield Jackson, agreed with the government and delivered a bombshell ruling: Microsoft had to be broken into two separate companies!
The Twist and the Settlement
Hold on, Microsoft wasn’t actually split up. An appeals court overturned the breakup order in 2001. By then, a new US administration was in place with different priorities. The DOJ and Microsoft reached a settlement: no breakup, but Microsoft had to implement internal compliance programs to prevent future antitrust behaviour. Importantly, the ruling that Microsoft was a monopoly stood.
Why This Old Case is Crucial for Google Now
Legal experts say the Microsoft case is “the key to all this” for several reasons:
- The Playbook: The DOJ literally modeled its lawsuit against Google on the Microsoft case. They argued Google was using similar tactics – leveraging its dominance (with Android, Chrome, and multi-billion dollar deals with companies like Apple to be the default search engine) to unfairly block competitors.
- Precedent Power: The Microsoft case established legal precedents for how courts view monopolies in the tech world. Both the DOJ and Google are now cherry-picking parts of that case history to support their arguments about what penalties are fair (or unfair) for Google.
- Echoes in Remedies: The DOJ’s proposed remedies for Google – potentially selling Chrome, stopping default search payments, maybe even selling Android – sound a lot like the original, harsh breakup order for Microsoft. Google argues these proposals go way too far, pointing to the final, less severe Microsoft settlement as the proper guide.
What Did the Microsoft Case Really Achieve?
Even today, people debate the impact of the Microsoft settlement.
- View 1: It worked! It reined in Microsoft enough to allow new competitors like Google and Apple to rise and flourish. Without it, maybe we wouldn’t have iPhones or Google Search as we know them.
- View 2: Microsoft got off lightly. The settlement didn’t fundamentally change their power, and maybe stronger action was needed.
What Happens Next for Google?
Knowing the Microsoft history helps us understand the arguments, but it doesn’t give us a crystal ball. Will the judge impose remedies as drastic as the DOJ wants? Will Google succeed in arguing for a lighter touch, similar to Microsoft’s final settlement? Will Google’s planned appeal change things down the line?
“It’s hard to know what’s gonna happen here,” admits law professor Sam Weinstein.
One thing is certain: the ghost of U.S. v. Microsoft looms large over this modern tech titan’s battle, reminding us that fights over market power and competition are nothing new in Silicon Valley.
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