When determining the relevant market for operating systems

When determining the relevant market for operating systems

When determining the relevant market for operating systems

When determining the relevant market for operating systems, would it make sense to include used computers with older versions of Windows as part of the market? Based on your answer, does Microsoft have a “dominant market position” in the market for operating systems?

(b) Microsoft participates in a variety of conduct alleged to be anti-competitive including: (a) bundling Windows 98 and Internet Explorer, (b) distributing Internet Explorer for free, and (c) using other Microsoft products (e.g., Windows 95 and Office) as chips when bargaining with Compaq, AOL and Apple.Pick one of the three pieces of conduct above and discuss whether the conduct goes “beyond what would be expected of firms competing fairly on the merits of their products and costs?”

(c) If Microsoft is found to have violated the Sherman Act, what remedy(ies) would you suggest would address the anti competitive concerns? Explain.

In addition, please think about the following questions you read the case. Do not include a response in your case write-up. Rather, these questions are to help you prepare for the case discussion.

Should Microsoft worry about an entrant with a new operating system?

What is it about Java and Netscape Navigator that makes Microsoft so concerned?

This case happened when internet browsing was in its very early stages. If this case where brought today, would you reach the same conclusions?

Solution preview

Operating systems are not only developed for new computers but also for computers that have been running on older versions of the operating systems. That is why Microsoft has the Windows Update Tool in all the versions of Windows. This tool enables users of older versions to update to newer versions…………………

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