Global Monopoly Power
MICROSOFT
· Motto "embrace, extend and extinguish." Microsoft initially embraces a competing standard or product, then extends it to produce their own version which is then incompatible with the standard, which in time extinguishes competition that does not or cannot use Microsoft's new version.
· These and other tactics have resulted in lawsuits. In January 2009, Opera Software ASA filed a complaint to the European Commission stating that Microsoft's inclusion of Internet Explorer with Windows-based personal computers is a violation of European competition laws.
Competition argument
· Microsoft owns more than 90% of the computer market and is clearly a global monopoly company.
· Microsoft argued that its Windows operating system was under constant threat, naming the likes of Linux – who only owned 3% of the computer market.
· Even over Apple, Microsoft enjoys over 80% of the computer market.
Findings of the Consumer Federation of America (CFA)
Microsoft retarded innovation by preventing specific products from being developed and deterring other software companies from devoting developer time and money to new products.
Microsoft denied consumer choice by delaying or driving specific products out of the market, preventing consumers from buying computers with software configured as they want, and forcing non Microsoft products to be distributed in inconvenient ways.
Microsoft degraded the quality of its of own products and exposed consumers to greater risk by forcing its Internet browser on the desktop to prevent competitors from being compatible with them. It degraded the performance of competing products to hurt their sales.
Microsoft increased costs for consumers in the short term by directly overcharging for operating system, discriminating against specific computer manufacturers, and causing consumers increased time and effort to obtain non-Microsoft products. It raised prices in the long term by preventing competitors from entering the operating system market. It caused consumers to pay more for hardware through its software design, licensing and upgrade pricing policies.
Microsoft also uses strategic barriers to entry such as introducing new software. A case where they did this saw them fined 497million Euros for bundling up Windows Media Player with its Windows operating system. However VC1 sees the end of Microsoft s operating system dominance on the horizon. I predict if for example Google entered the market operating systems would be no longer profitable.
Your Welcome VC 1
MICROSOFT
· Motto "embrace, extend and extinguish." Microsoft initially embraces a competing standard or product, then extends it to produce their own version which is then incompatible with the standard, which in time extinguishes competition that does not or cannot use Microsoft's new version.
· These and other tactics have resulted in lawsuits. In January 2009, Opera Software ASA filed a complaint to the European Commission stating that Microsoft's inclusion of Internet Explorer with Windows-based personal computers is a violation of European competition laws.
Competition argument
· Microsoft owns more than 90% of the computer market and is clearly a global monopoly company.
· Microsoft argued that its Windows operating system was under constant threat, naming the likes of Linux – who only owned 3% of the computer market.
· Even over Apple, Microsoft enjoys over 80% of the computer market.
Findings of the Consumer Federation of America (CFA)
Microsoft retarded innovation by preventing specific products from being developed and deterring other software companies from devoting developer time and money to new products.
Microsoft denied consumer choice by delaying or driving specific products out of the market, preventing consumers from buying computers with software configured as they want, and forcing non Microsoft products to be distributed in inconvenient ways.
Microsoft degraded the quality of its of own products and exposed consumers to greater risk by forcing its Internet browser on the desktop to prevent competitors from being compatible with them. It degraded the performance of competing products to hurt their sales.
Microsoft increased costs for consumers in the short term by directly overcharging for operating system, discriminating against specific computer manufacturers, and causing consumers increased time and effort to obtain non-Microsoft products. It raised prices in the long term by preventing competitors from entering the operating system market. It caused consumers to pay more for hardware through its software design, licensing and upgrade pricing policies.
Microsoft also uses strategic barriers to entry such as introducing new software. A case where they did this saw them fined 497million Euros for bundling up Windows Media Player with its Windows operating system. However VC1 sees the end of Microsoft s operating system dominance on the horizon. I predict if for example Google entered the market operating systems would be no longer profitable.
Your Welcome VC 1
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