Case Study of the Microsoft Monopoly

599 Words2 Pages
Case Study of the Microsoft Monopoly Introduction Microsoft has a long history of engaging in monopolistic behavior, from the initial efforts to protect their operating system business to the forced bundling of key software components including Internet Explorer (Meese, 1999). The goals of this analysis include a critical evaluation of why Microsoft has been investigated for antitrust violations, an assessment of how they are trying to gain monopolistic strength in the computer software industry, in addition to an assessment of the good and bad aspects of monopolies in general. Monopolistic Behavior the Microsoft Way The most significant efforts Microsoft has engaged in with regard to monopolistic behavior center on their continual use of contracts and licensing to restrict their hardware-based customers from using any other operating system either during production or after (Werden, 2001). Through the use of contracts and legally binding agreements, Microsoft has sought to create a barrier to entry so severe from a legal standpoint that none of their competitors can overcome it, without an excessive amount of legal fees and costs. Microsoft has also worked to change the demand curve for operating systems through the continual use of pricing, contracts and stipulations of which components can be loaded in conjunction with their operating systems at any point in time (Information Management, 2009). The net effects of this are to force greater inelasticity into the
Open Document