Question: Why was Microsoft, considered a monopoly?

[duo17]

Just wanted to know why, because when ever I try and read about it they don't really answer the question. Would someone care to enlighten me?

OA

 

[Pako]

Because generally speaking ALL of the world's major business apps are writen for Microsoft's operating system, giving the consumer little choice as to which platform to choose. You choose an OS based on the applications available to you, and on that premise, PC's have dominated the world market with PC compatible (Namely Microsoft) products. This gives Microsoft a great amount of control over many things....if you can only imagine.

Remeber "Bell" telephone systems? Maybe not, but back in the day, they were the only long distance carrier because they owned the copper wire connecting most of the united states. They were targeted as a monopoly and were forced to sell off sections of their business as a result. They had sole control without governmental regulation on pricing and as a result were a threat to make some really good money because it was such a sought after service. This can be compared to Microsoft, however, because there are so many other software Operating systems out there, Microsoft is not a true Monopoly.

 

[Tom M]

Another issue with Microsoft is that they were able to use their dominant position in the market to exert influence on developers and retailers, which prevented other companies from breaking into the market place where Microsoft had products already in place.

 

[viperguy]

i get it now, so basically all of the apps for PC's were designed for Microsoft, so then companies would have to use Microsoft to run programs.(right?)

Also, a little joke from Robin Williams-

"Mr Gates, when did you realize you were heading a monopoly?"

Gates-"Monopoly's just a game, I'm trying to take over the world."

 

[duo17]

Originally posted by Pako
Because generally speaking ALL of the world's major business apps are writen for Microsoft's operating system, giving the consumer little choice as to which platform to choose. You choose an OS based on the applications available to you, and on that premise, PC's have dominated the world market with PC compatible (Namely Microsoft) products. This gives Microsoft a great amount of control over many things....if you can only imagine...

But how is that microsoft's fault? The third-parties developed the programs and applications for use on microsoft correct? How is it microsofts fault that those companies chose to do that. Are they a monopoly because microsoft took advantage of everyone making programs and applications for use on Windows? Still not that clear. Need more.

OA

 

[Solid Fro]

Can Microsoft be considered a Natural Monopoly?

Intel made their processors to be compatible with Windows and Intel was the only one making processors for personal computers at the time. So, it would make sense to buy Windows if you have a PC, right? Even when Intel became a monopoly itself and created competitors like AMD, those processors were still made to work with Windows. Is it really Microsoft's fault that it is a monopoly or is it Intel's?

 

[duo17]

That's kind of like what I'm trying to say. Its the third parties that made parts and applications for Microsoft, so how is it Microsoft's fault. Good point Viper Zero!

OA

 

[Sage]

There's a lot to the monopoly, but I'll give you one famous example:

Back some years ago, Netscape was the dominant Internet browser, and to a number of people looked poised to be a great product. However, when Microsoft developed Internet Explorer, they intentionally packaged it with Windows, and made it difficult for users to use Netscape (the specifics on that are unknown to me... I've used a Mac all of my life, so maybe someone else could elaborate on that last part). The reason that that is illegal is because M$ already had control of the PC OS market, and they knew that doing this would inevitably crush Netscape (although it's still certainly available)... In a sense, they were the bully, and pushed Netscape out of the picture through an unfair advantage.

Here's a discussion on the subject (note: this is a Mac forum, so there might be a few biased views). Please take the time to read it all... took me quite a while to dig it up.

 

[duo17]

Thanks y_c! Its starting to make sense.

OA

 

[GilesGuthrie]

Youth_cycler has got to the nub of the issue. The idea that Microsoft was a monopoly, or to be more accurate, was undertaking in monopolistic behaviour, came from the Internet Browser issue.

Functionally speaking, what Microsoft sought to do was to build the browser INTO the operating system, thus making all permanently-connected computers access the internet as if it were just an extension of that computer's own file system. Moreover, whenever an Office app called a web-located file, the OS (which handles such calls) would go to IE, whichever browsers were installed on the system and configured as defaults.

This led to some huge issues for users with other browsers, and in 1998/1999 if you were running Netscape on a PC, you were either an IT genius, or were experiencing a lot of incompatibilities and general annoyances.

The other key issue in the monopoly is the OEM (Original Equipment Manufacture) supply of the Operating System. MS did deals with all the major hardware vendors (Dell, Gateway, HP, Compaq etc) to supply their operating system pre-installed. Then the users were forced to accept a license agreement saying that that OS would remain on that computer, which pretty much tied up the Desktop OS market. Even now, it's difficult to get a non-MS OS pre-installed on a machine.

Finally, MS is a very acquisitive company - when someone comes out with a new trick, MS simply buys their company, with Stacker, Visio and Hotmail being key examples of this.

 

[Sage]

Originally posted by duo17
Thanks y_c! Its starting to make sense.

You're welcome.

And, thanks Giles for elaborating... I was going off the very little knowledge I had on the subject.