Monopolization and the Sherman Antitrust Act

The Sherman Antitrust Act, enacted to combat anti-competitive practices, became a focal point in the legal challenges faced by IBM in the late 20th century. The United States government accused IBM of monopolizing the market for general-purpose electronic digital computer systems, particularly those tailored for business applications. This allegation stemmed from IBM's substantial market share, which positioned it as a dominant player in the computing industry. The lawsuit highlighted concerns that IBM's practices stifled competition and innovation within the software and services sector, which was crucial for the growth of the technology landscape. In response to the legal pressures, IBM took significant steps to address these concerns by unbundling its software and services, thereby fostering a more competitive environment in the software market. This move allowed other companies to enter the market, promoting innovation and diversity in software offerings.