klha essays

klha essays Software Giant to Outline Case for Consumer The European Commission has recently sued Microsoft for a number of so called anti-trust violations. Microsoft has now delivered an argument against the accusations explaining and defending their actions, as well as sighting their problems with the fact that the Commission seems to be making law simply to restrict Microsofts privileges. Microsoft argues that these accusations and proposed restrictions are more to help rival companies than to restrain its assumed monopoly. One major argument is that Microsoft ties in its Media Player to the typical Windows operating system. The Commission contends that Microsoft is preventing consumers from choosing their own media player. Microsoft explains that people do not want Windows without the Windows Media Player and that there is no evidence that alleged tie has restricted consumer choice. Yet, the Commission maintains that if the Media Player becomes dominant, any company that intends to sell content in audio or video form will have to ma ke sure it is in WMP format. Microsoft will essentially be able to charge a toll for each transaction. The trial, which will take place in European Courts, could take anywhere from a few months to five or six years. Microsoft Corporation may not officially be a pure monopoly, but it certainly has many of the characteristics. For one, the Windows operating system has become a standardized product, preventing any competition from entering the market. Factors such as this one in a market are known as barriers to entry and are a clear sign of a monopoly. Also, Microsoft is a price maker, which means that they can somewhat control the price of a specific product, in this case an operating system (Windows, etc), by changing its market supply. Essentially the only way for Microsoft to increase their sales of Windows OS is to lower the price. This shows that marginal revenue ...