Case study on market competition, merger.
Question Description
Based on the reading of the case, respond concisely to the following question(s):
(a) When determining the relevant market for operating systems, would it make sense to include usedcomputers with older versions of Windows as part of the market? Based on your answer, doesMicrosoft 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) bundlingWindows 98 and Internet Explorer, (b) distributing Internet Explorer for free, and (c) using otherMicrosoft products (e.g., Windows 95 and Office) as chips when bargaining with Compaq, AOL andApple.Pick one type of conduct above and discuss whether the conduct goes “beyond what would beexpected 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 wouldaddress the anticompetitive concerns? Explain.
Limit the answer in one page.
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