The news that Microsoft Corporation (NASDAQ:MSFT) was slapped with a $730 million fine for failing to honor an antitrust agreement had a slightly negative impact on the company’s shares. It was yet one more blow to a company that seems to be losing the stranglehold it once had over the market.
The latest problem stems from an agreement the company had with the European Commission. Under the agreement, Microsoft Corporation (NASDAQ:MSFT) would give users a choice of browsers when using its operating system for the first time. Instead of being hit with Internet Explorer as the sole browser, Europeans would be offered 11 separate browsers from which to choose. Instead, the European Commission found Microsoft Corporation (NASDAQ:MSFT) was presenting the same offerings to Europeans as Americans have been experiencing since the debut of Windows 95. The problem, Microsoft Corporation (NASDAQ:MSFT) said, was due to a “technical error” that began in 2011. The error endured for a full 14 months, ending in July 2012 when it was corrected. Microsoft Corporation (NASDAQ:MSFT) said the problem was corrected as soon as the company was made aware of it.
Americans begin to explore other options
The technical community tends to agree. Google Inc (NASDAQ:GOOG)’s future has never looked more optimistic, with some labeling it the “darling” of Wall Street. Thanks to the continued growth of Android smartphones and tablets, Google Inc (NASDAQ:GOOG) is giving investors good reason to spend more for its stock. But mobile operating systems alone aren’t enough to keep Google on top. In fact, Apple Inc. (NASDAQ:AAPL)’s iPad continues to out-sell Android tablets. Google Inc (NASDAQ:GOOG)’s continued success has more to do with its diversification than the evolution of technology.
Since first hitting the market at the turn of the millennium, Google Inc (NASDAQ:GOOG) has skyrocketed to success, but the company wasn’t content to become the world’s most-used browser. Instead, Google Inc (NASDAQ:GOOG) expanded into every area imaginable, from creating its own browser to allowing website owners to make money off ad placements on their sites and blogs. This continued innovation helps give investors confidence that the company will be thriving long after Microsoft Corporation (NASDAQ:MSFT) stops forcing its browser on every Windows-based device in America.
Apple and Google – opposite strategies
Apple Inc. (NASDAQ:AAPL), on the other hand, has remained focused on doing a few select things as well as possible. While the model makes the company’s products successful with its large group of loyal consumers, Google Inc (NASDAQ:GOOG)’s concept of spreading its offerings out seems to be instilling more confidence in investors. However, it’s important to note that while confidence in Google Inc (NASDAQ:GOOG) is high, Apple Inc. (NASDAQ:AAPL) still remains the world’s most valuable company, with the highest market valuation of any publicly-traded company.
Microsoft Corporation (NASDAQ:MSFT), once king of technology, is now sharing the stage with some fierce competitors. The European Commission ruling only brings to light something many of us have wondered for years – is Microsoft Corporation (NASDAQ:MSFT)’s American success due to free choice, or did many Americans simply use Microsoft Corporation (NASDAQ:MSFT)’s products because of a lack of competition? I, for one, gave up Microsoft Internet Explorer in favor of Mozilla Firefox years ago.
The article Is Microsoft Losing Its Advantage? originally appeared on Fool.com and is written by Stephanie Faris.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
