Microsoft monopoly-Why was Microsoft investigated for antitrust behavior?
Microsoft Company is one of the biggest companies in the world. It is also termed to be a computer software industry that is diversified. …
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The reasons that lead to Microsoft being reconnoitered for antitrust performance is the fact that there were reports of Microsoft Company abusing the position they had as one of the leaders in supplying operating systems of computers. It leads to various lawmakers carrying out investigations if Microsoft Company was creating a monopoly to the markets available for the computer software’s. These lawmakers later found out that Microsoft Company was causing a monopoly in the industry of computers.The lawmakers came out with facts used in supporting their judgments (McLaughlin, 1999). Microsoft Company created Microsoft office which gave services to everyone in any professional field. The Microsoft office was to be used to operate an operating system that was specifically from Microsoft Company. This operating system used by Microsoft, is windows. McLaughlin(1999) affirms that during the internet development, Microsoft Company tried to put measurements that were to eradicate and push out other companies competing with them in terms of net browsing. By doing so, Microsoft Company came up with the internet explorer which was to be used freely in their all operating systems introduced. The introduction of internet explorer came when people were spending their money in using Netscape Navigator and other browsers. According to the lawmakers, Microsoft Company was mortified of these exclusive dealings. This type of regulation gives Microsoft sole rights to a particular commodity.
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Secondly, there must be no close substitute available for the product offered by the monopolist. Therefore, a sole provider of petroleum cannot be considered a pure monopoly as natural gas is a close substitute for heating or electricity purposes. Thirdly, due to some strong reason there must be barriers to entry and survival of potential competitors in the industry so that the firm’s monopolistic behavior and excessive profits could persist (Baumol, Blinder 2007).
The company has been accused of pursuing anti competition strategies that are unlawful in order to dominate the market and benefit from the monopoly power (Meller 2009). In a monopoly, the firm will have the entire control in setting prices and sometimes derails innovation due to lack of competition.
Monopoly and Microsoft. The question of whether or not Microsoft represents a monopoly has long since been settled. With fully 90% of all computers running Microsoft operating systems, the reality of the current market speaks for itself. However, even though it is been demonstrably proven that Microsoft is in fact a monopoly, a further question that must be engaged is whether or not this monopoly could somehow represent a benefit to the consumer.
Computer and software industry is the leader in bringing about such changes. Microsoft is one such company, which has made a mark in this industry to the extent that the company has established a monopoly kind of lead in many segments.
Monopoly as such is defined as a situation when a company or group holds majority stake for a product or service in one or more markets.
In such a case it might have been quite difficult for other firms to devise substitutes in any reasonable amount of time.
The new world of the web, of global capital, of footloose businesses and of rapid technical change is teeming with opportunity. It is also making the old political ideas look rather dated.
It has a strategy and it had time to use this strategy to its competitive advantage.
90-95% of all personal computers used in the world run on Microsoft software. The company has the broadest understanding
Monopoly can be considered as one of the goals of a company due to the fact that it can be equated to control in the market.
There are different prerequisites that can determine monopoly in a particular market. One is the
The paper discusses the negative and positive aspects of Microsoft’s monopoly.
There are strong barriers to entry to the market. In a monopoly market, the seller sets enjoys maximum market share. More the
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