DOJArguments of the DoJ (the white paper)1. Microsoft and its Monopoly PowerMS monopoly power is in personal computer operating systems. A PC operating system as you all know controls the interaction of the different parts of the computer. It creates files, organizes the computers memory and creates a platform for applications.The operating system is indispensible to the computer for this reason. Maybe that changes as technology evolves but right now a computer without an OS is nothing but a box of inert hardware. MS today ships 97% of PC OS that are installed by computer manufacturers.Case law defines monopoly as beginning at about a 70% share of the market.But this alone isnt illegal in respect to superior products, service or mere luck. Nor does market share alone necessarily imply monopoly power. For example a manufacturer might make 100% of knickers on the market. But if there are other pants manufacturers who are able to turn their production into knickers, the one and only knickers producer wouldnt be able to charge more than a competitive price or exclude rivals from his market.Speaking of this little example its now clear what monopoly power means: it is the power to control prices and exclude competition. MS has and still exercises, both form of monopoly power. It charges above competitive prices and use tactics that eliminate rivals. And not because MS are superior to others and more beneficial to the consumers. No, not at all, MS uses predatory tactics whose sole purpose is to destroy its rivals.MS often has denied that it posesses monopoly power but their arguments are quite feeble.A MS spokesman stated that the market is highly dynamic and that there are only low barriers to enter the market, especially for fringe firms. But this is untrue for the means of competition.There might be a lot of new technology but the barriers MS deliberately put up made it impossible for new market entry. The result is that MS can charge hi...
