Webster's dictionary defines monopoly as "exclusive ownership through legal privilege, command of supply, or concerted action; exclusive possession or control; a commodity controlled by one party." In other words, through a variety of means, a producer may obtain sole or near sole control of a market. Through the control of the market, a monopoly restricts production, raises prices above fair market value, and prevents markets from efficient use of resources. This is accomplished towards the goal of maximizing profits.
Certain characteristics identify a monopoly. First, no close substitutes in the goods market, such as electricity or local phone access. Secondly, barriers to entry prohibit potential competitors from entering the market, for example, legal barriers, natural barriers, and resources. Thirdly, a monopoly is able to economically manipulate the market with respect to its products, to the intent of prohibiting competition.
Since the 1980's, Microsoft has held a virtual stronghold on the operating system market. Beginning with MS-DOS (disk operating system), and culminating with Windows 95/98, Microsoft has become an integral part of society. Its software not only includes the Windows operating systems, but spreadsheets, word-processing programs, databases, and reference works. Microsoft programs run on a great percentage of all the computers in the world. We rely upon them to sort, send, and receive information in school, business, and even our personal lives. The Microsoft Network provides online content, and it's Internet Explorer browser battled Netscape's for market share. It also provides free e-mail and other services. The fact is inevitable; our lives have come to rely upon the computers that we use every day.
The article I have chosen talks about the Microsoft Corporation monopoly case. The federal appeals court recently overturned the court ordered break up of Microsoft.