Microsoft Antitrust Paper -- essays research papers fc

     Viewed together, three main facts indicate that Microsoft enjoys monopoly world power. First, Microsofts theatrical role of the market for Intel-compatible Personal Computer (PC) run systems is extremely large and stable. Second, Microsofts dominant market share is protect by a high barrier to entry. Third, and generally as a result of that barrier, Microsofts customers need a commercially viable alternative to Windows, the direct system of all PCs.     Microsoft enjoys so much power in the market for Intel-compatible PC operating systems that if it wished to use this power solely in terms of price, it could charge a price for Windows intimately above that which could be charged in a competitive market. Moreover, it could do so for a authoritative period of time without losing an unacceptable amount of business to competitors. In other words, Microsoft enjoys monopoly power in the relevant market.     Microsof t possesses a dominant, persistent, and change magnitude share of the world-wide market for Intel-compatible PC operating systems. Every year for the last decade, Microsofts share of the market for Intel-compatible PC operating systems has stood above ninety percent. For the last mates of years the figure has been at least ninety-five percent, and analysts project that the share will climb even high over the next few years. rase if Apples Mac OS were included in the relevant market, Microsofts share would still stand well above fourscore percent.     Microsofts dominant market share is protected by the same barrier that helps define the market for Intel-compatible PC operating systems. As explained above, the applications barrier would prevent an be after entrant into the relevant market from skeleton a significant number of customers away from a dominant - 1 -incumbent even if the incumbent priced its products substantially above competitive levels for a s ignificant period of time. Because Microsofts market share is so dominant, the barrier has a similar effect within the market It prevents Intel-compatible PC operating systems other than Windows from attracting significant consumer demand, and it would stretch forth to do so even if Microsoft held its prices substantially above the competitive level.     Microsof... ...-interest.- 4 -BibliographyNew York multiplication     "How Microsoft Sought Friends In Washington." 7 November 1999 A33     "Microsofts Horizon." 7 November 1999 A33A     "A licentiousness Of Microsoft? Possibly, and Investors Shrug It Off." 9 November 1999 C1-C16     "Prosecutors Seeking To Break The Grip Of Windows System." 10 November 1999 A1-C30     "Microsoft Faces A Class Action On Monopoly." 22 November 1999 A1-A16USA Today     & quot buttoned-down judge at helm of Microsoft talks." 22 November 1999 B1-B2     "Microsoft findings spur lawsuit findings." 23 November 1999 B2The Wall Street Journal     "Microsoft Hopes for GOP Savior, but States Are Problem." 9 November 1999 A28Financial Times     "Experts say Microsoft case will drag on." 9 November 1999 11- 5 - Microsoft Antitrust Paper -- essays research papers fc      Viewed together, three main facts indicate that Microsoft enjoys monopoly power. First, Microsofts share of the market for Intel-compatible Personal Computer (PC) operating systems is extremely large and stable. Second, Microsofts dominant market share is protected by a high barrier to entry. Third, and largely as a result of that barrier, Microsofts customers lack a commercially viable alternative to Windows, the operating system of all PCs.     Micr osoft enjoys so much power in the market for Intel-compatible PC operating systems that if it wished to exercise this power solely in terms of price, it could charge a price for Windows substantially above that which could be charged in a competitive market. Moreover, it could do so for a significant period of time without losing an unacceptable amount of business to competitors. In other words, Microsoft enjoys monopoly power in the relevant market.     Microsoft possesses a dominant, persistent, and increasing share of the world-wide market for Intel-compatible PC operating systems. Every year for the last decade, Microsofts share of the market for Intel-compatible PC operating systems has stood above ninety percent. For the last couple of years the figure has been at least ninety-five percent, and analysts project that the share will climb even higher over the next few years. Even if Apples Mac OS were included in the relevant market, Microsofts share would st ill stand well above eighty percent.     Microsofts dominant market share is protected by the same barrier that helps define the market for Intel-compatible PC operating systems. As explained above, the applications barrier would prevent an aspiring entrant into the relevant market from drawing a significant number of customers away from a dominant - 1 -incumbent even if the incumbent priced its products substantially above competitive levels for a significant period of time. Because Microsofts market share is so dominant, the barrier has a similar effect within the market It prevents Intel-compatible PC operating systems other than Windows from attracting significant consumer demand, and it would continue to do so even if Microsoft held its prices substantially above the competitive level.     Microsof... ...-interest.- 4 -BibliographyNew York Times     "How Microsoft Sought Friends In Washington." 7 November 1999 A33     "Microsofts Horizon." 7 November 1999 A33A     "A Breakup Of Microsoft? Possibly, but Investors Shrug It Off." 9 November 1999 C1-C16     "Prosecutors Seeking To Break The Grip Of Windows System." 10 November 1999 A1-C30     "Microsoft Faces A Class Action On Monopoly." 22 November 1999 A1-A16USA Today     "Conservative judge at helm of Microsoft talks." 22 November 1999 B1-B2     "Microsoft findings spur lawsuit findings." 23 November 1999 B2The Wall Street Journal     "Microsoft Hopes for GOP Savior, but States Are Problem." 9 November 1999 A28Financial Times     "Experts say Microsoft case will drag on." 9 November 1999 11- 5 -