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The reason why the EU “slapped” Microsoft is instructive though: in a nutshell, the argument was as follows: it is so big that it can crowd out other smaller co
by qubex 7y ago
The reason why the EU “slapped” Microsoft is instructive though: in a nutshell, the argument was as follows: it is so big that it can crowd out other smaller competitors because it can offer products for almost free (because their marginal cost is basically zero) whereas starting up and/or sustaining a small competitor (perhaps with a subset of functionality, for a lower TCO) is more expensive. Since producers are (as remarked elsewhere) seen as “vehicles for job creation”, this is a net negative.
- robbrown451 7y agoYeah and it is also a net negative for consumers if the big company offering things for almost free stops innovating once their competition goes away. Personally I think that free markets just don't work with products that are zero marginal cost. I don't necessarily have a solution, but it sure seems like the rules just don't work well anymore.