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As can be seen from the market concentration of the web browser industry it is majorly covered by two players with Microsoft and Mozilla Firefox covering 84.7% market share. The entry and exit barriers are relatively higher and the product is mostly homogenous across all companies without much differentiation. This suggests an oligopolistic nature of the web browser industry. The companies are dependent upon others and shall take other companies actions and counter-moves of other companies wile making decisions (Melvin and Boyes, 2002).
The oligopolistic nature of the web browser industry implies that there is a chance that companies might indulge in collusion to stabilize the market position. In such a situation, the role of Competition Commissions become important to stop the formulation of cartels as it may hinder the growth of the market. In the case of web browser industry, Microsoft is bundling the web browser with its operating system, thereby giving less chances for other players to launch their web browser and earn profits. As a result of the skewed market share of the web browser industry, the smaller players in the market have to try hard to gain market share and find innovative ways of doing the same.
The Web Browser Industry has performed exceedingly well with the rise in the internet and the world wide web. Over the last few years, Google Chrome has shown significant growth in the market share. The growth in the market share of Chrome has resulted in a drop in the market share of Microsoft web browser. Companies have made new revenue streams such as online marketing.
The competition commissions in its decision said that it is necessary for Microsoft to show the browser choice screen. The reason stem from the fact that when the windows is shipped, it is boxed with the internet explorer which roled to many users not making use of other web browser. In order to provide a level playing ground for all the web browser providers, it is necessary
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