Antitrust Practices and Market Power Essay Example | Topics and Well Written Essays - 500 words - 2

Antitrust Practices and Market Power - try out ExampleBy pairing the two together, every Windows user had a copy of the internet venturer which led to Microsofts victory in the market. It was wee that bundling them together had restricted the access for opposite browsers in the market that had to be bought. It is alleged that Microsoft used its monopoly power to favor the internet explorer oer the other web browsers.In its defense, Microsoft said that merging its operating system and the Internet Explorer was as a result of fair competition and invention, and that would enable users to use the internet explorer for free. It was still clear whether the operating system and the Internet Explorer were two separate items or whether they were one piece. However, Microsoft maintained that it had make its operating system a bit more expensive, and thence it could not be said to be y free. The case focused on predatory strategies Microsoft had engaged in and a market parapet to entry a s opposed to interoperability (Brinkley, 2000). The action by Microsoft to favor internet explorer over the rest of the browsers in the market violated the Sherman antitrust law of nature section 1and 2 where Section one states that both contract that would cause restraint in trade among several states and thus the contract could be declared illegal. Section two, on the other hand, states that any company that will attempt to monopolize any divulge of trade shall be declared guilty of a felony punishable in a court of law (St.Olaf College, 2004).A monopoly is a company that has only one seller in the market who has absolute rights in a particular interest, and they are te only seller in the market thus redeem the right to fix the price. In most cases, the cost of entering into the market is very high thus causing a barrier to entry to new entrants. The monopoly fixes the price as consumers will still buy. thither are monopolies owned by the government especially where the