Antitrust Practices and Market Power Essay

Open, View, and/or
Download this Document

Total Length: 439 words ( 1 double-spaced pages)

Total Sources: 2

Antitrust Practices and Market Power

It is important to realize the reason that Microsoft was investigated for possibly violating antitrust laws at the turn of the millennium. The company had established something of a natural monopoly of the software market (which is distinct from a government monopoly), and was leveraging its considerable market power to systematically eliminate its competition. It is legal to establish a monopoly in any given industry; yet it is illegal to "use certain practices that have no commercial justification in an effort to further entrench the monopoly" (Hazlett et al., 2000, p. 46). Microsoft was not charged with price fixing, and instead was investigated due to activity such as its penchant for fostering exclusive contracts and for withholding its operating system from certain competitors (Hazlett et al., 2000, p. 46).

Stuck Writing Your "Antitrust Practices and Market Power" Essay?

View All Our Example Antitrust Practices and Market Power Essay

Have A Custom Example Essay Written



Microsoft was investigated specifically under the Sherman Antitrust Act, particularly the first two sections which state that restraining trade and monopolizing trade internationally or between U.S. states is illegal (Haw, 2011, p. 1247). By erecting a monopoly market structure (which is different from an oligopoly market structure), Microsoft was able to erect barriers to entry into the software and certain facets of the middleware market. It also exacted costs to competitors by punishing them with monopoly pricing, since it was the price maker, if they….....

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Antitrust Practices And Market Power" (2014, May 24) Retrieved May 13, 2025, from
https://www.aceyourpaper.com/essays/antitrust-practices-market-power-189416

Latest MLA Format (8th edition)

Copy Reference
"Antitrust Practices And Market Power" 24 May 2014. Web.13 May. 2025. <
https://www.aceyourpaper.com/essays/antitrust-practices-market-power-189416>

Latest Chicago Format (16th edition)

Copy Reference
"Antitrust Practices And Market Power", 24 May 2014, Accessed.13 May. 2025,
https://www.aceyourpaper.com/essays/antitrust-practices-market-power-189416
   

Open, View, and/or
Download this Document
order custom essay example