Operating systems are not only developed for computers that have been using older version of operating systems but also for new computers. This is the reason why Microsoft has a windows update tool for all windows versions. This enables older version users to update to new versions. Therefore, it is right to include older version computers in the market analysis since also new computers have been designed to accept different functions of windows developed.
According to Page &Lopakta (2017), bundling of windows 98 and internet explorer helped the company increase sales because consumers could purchase two as one feature to promote sales compared to when sold separately. The provision of windows 98 as an inbuilt feature also facilitated in the creation of the company’s market segment (Page and Lopakta, 2017). This decision reduced competition among computer manufacturers because windows 98 became a dominant player in the software market. This enabled Microsoft to earn a dominant position by collaborating. This resulted to the setting of reasonable prices for consumers and minimum competition.
The Sherman Act was the legislation of antitrust laws that were witnessed in rail corporations. Its primary purpose was to protect monopoly organizations’ predatory nature. 1914 Clayton act was enacted to limit bad business practices like tying contract by making them illegal and price discrimination. The remedy for violation of this act is by reducing collaboration through the creation of a scenario where the market is not determined by supplier surplus but by customer surplus. Nokia company is a good example ofa company that managed to limit its collaboration to one manufacturer, thus created consumer surplus.
Page, W. H., &Lopatka, J. E. (2017). The Microsoft Case as a Political Trial. University of Florida Levin College of Law Research Paper, (2010-15).
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