Microsoft was created primarily by Bill Gates, who is said to be the richest man in the world today. Microsoft is a
corporation that manufactures, licenses, and supports computer software programs
as well as some hardware and home entertainment products. In 2004, Microsoft was accused of abusing its market powers. Bill
Gates was blamed for using the company’s market power to cut off other competitors. The company designed their software
to be incompatible with non-Microsoft programs. Because most major computer manufactures sold their hardware with Microsoft
software, competing software had little chance to be bought and recognized. Microsoft had found a way to become a monopoly.
Railroads
In the 1800’s, the newly expanded West came to depend on the railroads as transportation for materials
and businessmen. Farmers and others had no choice but to use the railroads to distribute their goods. This market power allowed
the railroads to charge high rates while paying very low wages.
Newspapers
What newspaper do you read most often? Chances are, if you
live in the CoachellaValley, it’s The Desert Sun.
This is because there aren’t many other newspapers competing with The Desert Sun to sell their news to us.
Newspaper companies have found that by working with other newspaper companies, they can benefit from each other. Some
companies share overhead costs and some even swap “regions” or “clusters.” Like in the game of Monopoly
by Milton Bradley, the clusters are being traded among the companies! Many smaller
newspaper companies are actually chains owned by a larger company. This concentration gives a few newspapers all of the power.
More market power for a single company equals less competition. Lack of competition leads to a monopoly.
