Monopoly

In recent news, Microsoft agreed to an anti-trust settlement in Europe, offering to release a version of Windows without all the media player stuff in it. The problem is, I don’t think it solves any problems.

Here’s a simplified version of what people say is wrong with Microsoft’s monopoly:

  1. A huge majority of people buy Windows.
  2. Microsoft can then include products with Windows for free, like Internet Explorer.
  3. This means that other companies that only make certain products, like Netscape, can’t compete because Microsoft’s product is already in the bag. They go out of business.

The problem with this is the solution doesn’t work: Taking the product out of Windows is irrelevant. Who would want to buy the crappy version with less features that costs the same? Furthermore, you can just download the Media Player garbage from the Internet for free anyways.

What’s damaging to competitors is the predatory pricing. If I offer a product for free or reduced prices when it costs money to get it from a competitor, then the competitor is driven out of business.

Guess that just goes to show that the law still can’t figure out how to deal with monopolies.

-Chris

P.S. In other news, EA just got exclusive rights to a whole lot of NFL-related franchises:

[13:34] Cheng: stacks
[13:34] Cheng: guess only madden can change the whole mo of the game then
[13:34] Me: http://www.1up.com/do/feature?cId=3137894&did=1
[13:34] Me: guess so
[13:36] Cheng: madden will be even more in the money
[13:36] Me: lol
[13:36] Cheng: they could always just use the CFL or something instead

Comments

  1. Tardicus says:

    We should play monopoly and actually finish a game. We used to always start them, but then people would quit after a while. A good game of monopoly could be good. We could even have teams, so stooges wouldn’t have to sit through the whole game, just half of it or something.

  2. Chris says:

    To follow-up: it seems like the predatory pricing has, in a way, changed the way the game works. Now companies offer free software and charge for service: Sun, Red Hat, and Opera among others. Maybe MS should offer cheap service and drive the others out of business. Or maybe that wouldn’t work. I don’t know.

    Either way, EA has a monopoly on all the profitable games.

  1. [...] law or self interest intervenes. However, unless software must change from year to year (think Madden NFL), there is no reason that a service-oriented business like Red Hat couldn’t produce an open [...]

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