Specifically, how can the government say Microsoft is a monopoly?
In most markets, companies vie to produce the best goods they can at the lowest price they can so they can make a profit. Because all competitors are subject to the same costs, it’s difficult for one to gain an edge over the others. Often a handful of competitors rise to the top thanks to product differentiation and better management, but none can put all the others out of business because they’re all selling essentially the same thing. Microsoft, on the other hand, isn’t one of several large competitors in the PC operating system market: It’s the only competitor, the feds say. If you take out the illegal copies of Windows 98 some fly-by-night companies use, almost 95 percent of all PCs shipped use Microsoft Windows. That isn’t the problem, however. The government is suing Microsoft for allegedly using its market power to do things that only a monopolist or near-monopolist can do. Q: This all sounds interesting, but why can’t others copy what Microsoft is doing? And why aren’t Apple’s
