Link: http://www.fudzilla.com/content/view/14190/1/
Summary
With Microsoft packaging their operating system with their programs such as windows messenger and windows media player, two companies stepped up claiming that they experienced financial damage because of Microsoft’s actions. Digito.Com and Sanview Technology filed suits demanding $40 million for the financial damage but since they couldn’t prove that the damage was linked to Microsoft the claim for $40 million was thrown out. In addition to this case, the South Korean court ruled that Microsoft breached its fair competition rules which resulted in Microsoft paying a large fine to the South Korean Fair Trade Commission for its anti-trust antics.
Connection
The connection linking the article to chapter 10 is the topic of microeconomics around Microsoft. Microsoft is a corporation that possesses monopoly power in the PC market for operating system. This competition of media and messaging software is considered an oligopoly because the market is only dominated by a small number of sellers but Microsoft is selling their products for free which hurts their competition because they can’t sell their products for free or raise their price because they can’t gain revenue either way; this whole situation falls under mutual interdependency.
Reflection
I think this whole situation over Microsoft’s action causing financial problems for companies is a scheme for the companies to gain some money from Microsoft’s success. Usually free programs comes with limited functions and when compared to programs that you need to pay money for, they usually fail in comparison because paid programs usually contain more features and are of higher quality. In this case it looks like Digito.com and Sanview Technology couldn’t beat what Microsoft has came up with and in times of desperation decides to blame someone else and hope to gain some money out of it.
Comment @ Calvin Dai's Blog
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