The examples of why we need corporate governance are evident with the issues dealing with EU and Microsoft. Since the 80’s, 90 percent of the personal computers run Microsoft windows operating systems. Because of this huge influence and market share on personal computers, Microsoft is the leader in the software industry. Being the leader of the software industry, Microsoft used its monopolistic tactics to try to control the digital media world. The European Commission studied Microsoft over five years before filing and finding a record of $613 million dollars. The EU concluded that Microsoft abused its powers in two dominant areas which are the digital media market by including windows media player as the default media file manager in the Windows Operating System. This is where EU stepped in and started to govern or regulate what Microsoft can and should do. The EU Competition Commissioner Mario Monti states that, “all companies that want to do business in the European Union must play by its antitrust rules, and I’m determined to act for their rigorous enforcement.” The EU wanted Microsoft to de-bundle their Windows Media Player from the Windows operating system so that other digital media companies could somewhat have a chance to compete in the digital media world. By de-bundling Windows Media Player from the Windows operating system, customers will now have a chance of choosing which digital media program then can use or buy. By including the Media player with the Windows Operating system, Microsoft eliminated any chance of business from companies such as Real Audio player, Apple QuickTime, and etc. So the EU stepped in and required that Microsoft make two versions of the Windows operating system, one with the Media player and it is sold today, and one without the media player to sell in the European market. Lastly EU wanted Microsoft to release their source code to other vendors so that they can create programs that will run smoothly with the Windows Operating system. This here is a perfect example of where corporate governance is needed and should get involved in these monopolistic tactics that Microsoft used. Microsoft tried to eliminate their competitors in the digital media world by including the Windows Media player, but the EU stepped in and stopped Microsoft from dominating and putting a strong hold on other vendors. EU’s commissioner Mario Monti states that, “is about protecting Consumer choice and stimulating innovation.” EU’s commission was looking for the better interest of the public, and somewhat of a leveled playing field in the digital media world so that other vendors will have a chance to compete in the digital media market. By de-bundling the Windows Media Player, now costumers will have a choice on picking which digital program is best for them to use, and have the freedom of being innovative because they are not restricted by Microsoft.
