Firstly, Microsoft has not operated as a monopoly, a premise that regulators can apply from The Sherman Act to enforce antitrust laws against Microsoft Inc. The rising aspect of Microsoft Windows and Microsoft Office to their present market position do not show whatsoever consequences of “barriers to entry” or any other forces that are non-market (Levy, 2004, p.11).
Large market shares might indicate an intrinsic attribute of the new Digital Economy, possibly as a result of high fixed costs (FC) as well as low marginal costs (MC) or because e-commerce permits consumers to recognize and select better-quality products more quickly as compared to the Old Economy. Whichever way, there is little proof of the fact that Microsoft has excessive market power at present
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In conclusion, an assessment of the history of antitrust laws shows that the initial objective of lawmakers was to give producers protection from low prices, instead of protecting consumers from the power of monopolies (Posner, 2009, p.5). It is, therefore, necessary for the antitrust laws to be revised. This is because the Sherman Act is presently being utilized as a tool by unsuccessful competitors to be triumphant in the political arena that which they cannot accomplish by means of customer satisfaction in the market.
Levy, R. A. (2004). Shakedown: How corporations, government, and trial lawyers abuse the judicial process. Washington, D.C: Cato Institute.
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