In year 1999, Microsoft has been accused by Justice Department of United States as the corporation was suspected for using anticompetitive contracts with personal computer(PC) manufacturers to maintain unlawful monopoly.
During that time, there were about 95 percent of PC with Intel processors running a Microsoft operating system(OS). On April 3,2000, Judge Thomas Penfield Jackson had came out with his conclusions of law. He stated that Microsoft had committed and attempted monopolization.
Monopoly is defined as existence of a single seller in the market who produces goods that have no substitutes. A single firm has control over the resources and market by selling a unique goods.
In my personal opinion, Microsoft is monopoly not because of their market share in the PC software market. Actually it is Microsoft production line rests upon state enforcement of legal monopolies of duplication known as copyright.
For instance, imagine that there are two farmer known as Edward and Jacob. Edward want to start his business with papaya. Initially Edward buy a papaya from Jacob and utilizes the seeds within the papaya to plant papaya trees. Edward spends his own energy and time on the whole papaya plantation. After harvesting, Edward can actually sell them in direct competition with Jacob.
However, if it is a Windows OS , Edward cannot simply duplicate and sell it for many times even he may invest money and time. It is a crime where involves copyright violation.
It is distinctive between coercive monopoly and private dominant corporation like Microsoft. A coercive monopoly is created by government act and it achieves market share by legal protection against competition. On the other hand, Microsoft achieves...
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...devices. Now Google's Android and Apple's iOS is in the ascendency. Basically Windows' global share has been cut down to about 30 percent. Not forget to mention , Android is currently a bigger platform compared to Windows.
Lastly, and most recently, this chart from analyst Horace Dediu of Asymco illustrates that the PC business is no longer just getting dwarfed by the explosion of smartphone and tablet sales . PC no longer became the center of the personal computing world. Instead, it becomes a specialized office-productivity device. Multiple choice of devices made the full-blown PC is always not the most convenient, effective or simplest alternative to perform what a user wants to do.
In a nut shell, a current market share in computer industry does not guarantee of future success. Innovative competitors frequently break down what might appear to be monopolies.
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