33. Microsoft enjoys so much power in the market for Intel-compatible PC operating systems that if it wished to exercise this power solely in terms of price, it could charge a price for Windows substantially above that which could be charged in a competitive market. Moreover, it could do so for a significant period of time without losing an unacceptable amount of business to competitors. In other words, Microsoft enjoys monopoly power in the relevant market.

34. Viewed together, three main facts indicate that Microsoft enjoys monopoly power. First, Microsoft's share of the market for Intel-compatible PC operating systems is extremely large and stable. Second, Microsoft's dominant market share is protected by a high barrier to entry. Third, and largely as a result of that barrier, Microsoft's customers lack a commercially viable alternative to Windows.

A. Market Share

B. The Applications Barrier to Entry

C. Viable Alternatives to Windows

D. Price Restraint Posed by Microsoft's Installed Base

E. Price Restraint Posed by Piracy

F. Price Restraint Posed by Long-Term Threats

G. Significance of Microsoft's Innovation

H. Microsoft's Pricing Behavior

I. Microsoft's Actions Toward Other Firms

Microsoft Findings Home
Findings of Judge Thomas Penfield Jackson, Nov. 5, 1999

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