gher than competitive prices without a loss of market share.Another argument of MS is that its monopoly power is defeated by ist need to compete against its own installed base meaning that MS has eg now to compete against win 95.But this is another partly untrue argument because most consumers think of a new OS only when they want to buy a new computer and replace their old one. With that consumers expect that the replacement will come with an installed operating system. Therefore competition among operating systems, if it were allowed to exist, would be competition to have computer manufacturers install operating systems on a new machine.2. MS employs exclusionary tactics to maintain its monopolyMS exclusionary war proceeds along two lines. First it has built its browser, the IE, into its Win OS and will not allow computer manufacturers to remove it.Second, MS employs a complex web of restrictive agreements designed to block the entry or growth of rivals.To say something about the history. The Browser War Netscape produced the first browser, the NN, which made searching the internet practicable for the average computer user. Thus the Navigator posed a serious threat to MS monopoly because NN created the possibility of a system that would bypass the Windows OS. Meaning that a browser with a large number of users can become an alternative platform by combining it with eg. Sun Microsystems programming language Java. Together Netscape and Java could reduce Windows to just one OS among several others.Microsoft recognizes the danger at once: Netscape/Java is using the browser to create a “virtual OS” and that a competing browser could eventually obsolete Windows. Naturally MS didnt like the idea and counterattacked. It developed ist own browser the Internet Explorer.When the IE failed to push the Navigator out of the market MS joined its browser to the OS, first with win95 and now in win 98 so that computer manufacturers are forc...
