When determining the relevant market for operating systems


Read the case "Microsoft on Trial" in the case packet and respond to the case question(s) below. Please limit your response to a single page

(a) When determining the relevant market for operating systems, would it make sense to include used computers with older versions of Windows as part of the market? Based on your answer, does Microsoft 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) bundling Windows 98 and Internet Explorer,

(b) distributing Internet Explorer for free, and (c) using other Microsoft products (e.g., Windows 95 and Office) as chips when bargaining with Compaq, AOL and Apple. Pick one of the three pieces of conduct above and discuss whether the conduct goes "beyond what would be expected 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 would address the anticompetitive concerns? Explain.

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Basic Computer Science: When determining the relevant market for operating systems
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