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Dozens of cases worldwide continue to challenge Microsoft
Corporation's superdominance of the global digital network economy,
focusing in particular on the multi-tying practices that leverage
Microsoft's market power into adjacent markets and reinforce its
dominance. This is the first book to analyze this international
line of cases, detailing both grounds for legal action (including
unfair competition, restriction of consumers' freedom of choice,
abusive pricing) as well as Microsoft's defenses and administrative
settlements. The author also demonstrates the serious economic
repercussions of Microsoft's monopoly, such as accumulation of
inefficiency and stifling of innovation in this crucial sector of
twenty-first century economy and society.Through an in-depth
analysis of the Korea Fair Trade Commission (KFTC) case - which led
to a December 2005 decision, currently under appeal at the Seoul
High Court, condemning three fundamental tying practices embedded
in Microsoft's global business strategy - the author clearly
establishes the precise nature of Microsoft's anticompetitive
practices, complete with clear technical descriptions of the
underlying applications and digital media systems. The discussion
develops valuable guidelines on such core issues as the following:
network effect, tipping effect, and lock-in effect; separability of
Microsoft's tied and tying products; forced purchase by consumers
of multiple tied products; Microsoft's reinforcement of market
entry barriers; Microsoft's "normal business practice" defense; and
cumulative damage to consumers' interests.The book's ultimate legal
and economic assessment clarifies ways in which government
competition authorities can select from globally available options
on a case-by-case basis, enforce re-pricing measures, avoid belated
remedies, and continuously monitor new types of anticompetitive
conduct.In its analytic rigor, focus on important economic issues,
and its unwavering commitment to fair competition, this book will
be of immeasurable value to practitioners and policymakers at every
level concerned with the digital network economy, now and in the
years to come.
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