Is MS’s market share so massive that it can behave like a monopoly?
Microsoft Corporation businesses are so massive that the company operates has a monopoly company. Based on the case study, Microsoft Corporation has expanded and diversified in the last few years. In the study, it is noted that the company only engaged in the selling of computer software during its early inception periods. Over time, the company has expanded to all computer related businesses.
Currently, the company manages 90-95% of all operating systems used in computers in the world market. Likewise, Microsoft has ventured into telecommunication, internet, and e-commerce services. Through these endeavours, the company has been accused of abusing its monopoly rights. On many occasions, the company has had to buy smaller rival firms, or has had to manipulate their operation to satisfy its interests. On a similar note, the company has snatched the best programmers from their rival firms to paralyze their operations and push them out of business.
Is MS a good example of dead weight loss to its economy?
In my opinion, Microsoft Corporation is a perfect example of a dead weight loss to its economy. According to the economists, monopoly can be considered as a dead weight loss to its economy when it leads to artificial scarcity. In this regard, Microsoft expansion in the computer can be said to have created an artificial scarcity in the computer markets. The demand for viable operating systems and programs in the world market is high. However, since Microsoft has monopolized this market, users are often forced to purchase their operating systems. Through these actions, Microsoft has manipulated the demand and supply in the computer market to increase their returns. By doing so, the company has been considered a dead weight loss to its economy.
Do you agree with Jackson or not?
Through the case study, we realize that earlier the company had been accused by the federal law court for acting as a monopoly. Rejecting the company’s defence, Judge Jackson asserted that the company’s business acts were harming the consumers. Likewise, the judge argued that the company was indeed acting as a monopoly. In my view, Jackson’s rulings were justified. Over the last decade, Microsoft has paralyzed the growth of its rival firms and pushed some out of the market.
Through its anti-competitive behaviours, the company has managed to dominate the computer market. By doing so, consumers have been forced to purchase their services and products since they are the most readily available in the world market after pushing out their rivals. In accordance with Jackson’s argument, Microsoft business deeds have reduced innovations in the computer market. Currently, so many innovators have come up with viable innovations that can challenge Microsoft’s innovations if allowed to compete favourably in the world market. Microsoft monopoly has ensured that these innovations do not reach the world market by making sure that their users become fully dependent on their services and products.
Study the recent industry trends and build your own logic on the probable monopoly power of MS at present.
Currently, Microsoft Corporation is venturing into video and audio streaming technologies. The company tapped into these technologies after forming a partnership with NBC. Through this initiative, the company has used its tactical business operation by collaborating with rival firms to enable it manipulate the specific business to satisfy its interests. In some few years to come, if the company manages to collaborate with other companies in the delivery of multimedia services, the company will manage to dominate this sector and monopolize it. In this respect, appropriate legal measures should be taken to prevent the company from advancing through its unethical business tactics. Through this, equal competition would be fostered in already monopolised market.