They accused the company of abusing its position in the market by: In 1998 the Justice Department and attorneys general from 20 states filed an antitrust action against Microsoft. Nevertheless, the government took action. The more people on Facebook, the more likely it is that a new user will subscribe to Facebook instead of another service. ( AMZN) and Airbnb, all companies which currently dominate their individual markets in part because their services organically grow more efficient the larger the company grows. Readers might recognize this language from the current debates over platforms such as Facebook The Justice Department began to consider, for the first time, an industry that didn't just naturally lend itself to monopolies, but one which arguably improves under a monopoly. But that would have made life harder for the user, who would be unable to share files with Office users. Productivity shoppers, for example, could have used office packages such as Lotus and WordPerfect if they chose. It wasn't that users had no other choice. The more people who bought its Office suite, the easier it became for users to share documents. The more people who used Microsoft's Windows operating system, the easier it was for companies to build networks and link up far-flung offices. The nature of computer technology is such that standardization improves efficiency and communication. For the first time, regulators faced a product that actually worked better as a monopoly spread. While Microsoft certainly made enormous profits over the 1990's, computer technology introduced the element of network effects into antitrust concerns. Monopolies have historically led to rising costs and declining product quality as companies leverage their position to maximize profits. Antitrust law assumes that a monopoly will harm consumers not only because it will stifle competition, preventing new ideas and products from improving the market in the long run, but also because it will harm consumers immediately. Microsoft's one-party rule was different, though, in a way that regulators and lawyers continue to struggle with today.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |