The microsoft case

The Microsoft Case Microsoft investigated for antitrust behavior Microsoftengagesinmanufactureof diversified computer software and afamilyof windows operating systems. The Companyhavealso introduced application software thatrunin the operating systems. The applications are like theMs OfficeSuite thatis commonly usedbynumeroususers in the world. Therefore, products of Microsoft are complementary to the operating systems in both serves and personal computers (Economides, 2001).The Companywas investigatedfor antitrust behaviors due to violating the Act that prohibits companies from monopolizing, attempts for monopolization, conspiring or combining with other people with the motive to monopolize part of atradeamong several States. However, Microsoft was aiming at gaining the monopoly power in the PC market (Economides, 2001).Doyouagree or disagree that Microsoft was trying to gain monopoly power in the computer software industry?Yes,I do agree that Microsoft was trying to gain monopoly power in the computer software industry.Microsoftmismanaged the opportunity of being the leading market holder in the computer industry, which led to antitrust behavior investigations. The Company had managed toattain95% market share through antitrust behaviors (Brinkley amp. Lohr, 2000).The reports led to theinvestigationfor determining whether Microsoft is aiming at establishing a monopoly in the market of the computer software. There have been numerous facts proving that Microsoft was makingeffortsmonopolizetheindustryof software. The creation of Microsoft Office as a package that comprises of packages that areentirelyassisting theprofessionalwas a deliberate move to monopolize the market. Microsoftwas also sueddue to developing an operating system that had Windows Media Player. thus, engaging the real media player in unfair competition (Brinkley amp. Lohr, 2000).Are monopolies alwaysdisadvantageous?In Monopoly markets, Companies have marketpower in given segments thatinvolvetheproductionof commodities. The Monopolies are also the price makers of the products produced. In the case where Government Monopolyis involved, the government controls accessibility to production. The Government monopoly relates to a monopoly of government cooperation or an agency. However, there are Pros and cons to the natural monopoly. The natural monopoly results due to businesses that require a high start up costs in order to operate in a given business. To the company, monopoly ensures that unnecessary competition is avoided. this results to increased marginal revenue .strong brand name (Tucker, 2010). Monopoly ensures that an organization enjoys economies of scale due to highquantityof production. The economics of scale relates to costs advantages that a monopoly can enjoy due to expansion. This results to the company incurring lower marginal cost that results tohigheconomic profits. The economic profit is realized when the revenue surpasses opportunity costs of inputs. Marginal cost changes are attributed alteration in production. If a company engages inanimperfectcompetitionin order toholda monopoly, it becomes subject to the legal actions for the other competitors or federal government. This is evident in the case of Microsoftbeing involvedin antitrust suit. The antitrust suit focuses on reducing the uncompetitive behaviors in the market and with business practices that are unfair. ReferencesBrinkley J. amp. Lohr S. (2000). U.S. v. Microsoft. New York: McGraw Hill.Economides N. (2001). United States v. Microsoft: A Failure of Antitrust in the New Economy. UWLA Law Review. Retrieved on 15 May 2012 fromlt. http://www.stern.nyu.edu/networks/UWLA.pdf gt. Tucker B. (2010). Survey of Economics. Ed 7. New York: Cengage Learning

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