This is Hacker News, so this is somewhat relevant. How in the world was Microsoft's monopoly on the PC operating system market a decade ago, a government granted monopoly?
It wasn't. So they the competition quickly routed around them and made them irrelevant. Where's Microsoft "monopoly" today?
In a free market a monopolistic company is just an invitation for the competition to a rich easily accessible lunch. The (naturally occurring) monopoly is short-lived.
Unless there is regulation. Regulation raises the barrier of entry, discourages start-ups and thus protects the monopolistic company from the competition.
It was ruled in 2001 that Microsoft, indeed, had a monopoly on the PC operating system market which they used to overtake the browser market. They did this through private contracts with OEMs and distributors such that all PCs sold to customers were to include Windows and only Windows.
> Judge Thomas Penfield Jackson issued his findings of fact on November 5, 1999, which stated that Microsoft's dominance of the x86-based personal computer operating systems market constituted a monopoly, and that Microsoft had taken actions to crush threats to that monopoly, including Apple, Java, Netscape, Lotus Software, RealNetworks, Linux, and others. [1]
> So they the competition quickly routed around them and made them irrelevant.
That's certainly true for some of their products, such as Internet Explorer, but certainly not for Windows on the desktop.
The PC operating system market is not the server or mobile OS market.
> Where's Microsoft "monopoly" today?
They own the PC operating system market.
> Unless there is regulation. Regulation raises the barrier of entry, discourages start-ups and thus protects the monopolistic company from the competition.
Microsoft created barriers of entry into both the PC operating system and browser markets through anti-competitive tactics. If by government regulation, you mean "court enforced contracts", I'd agree with your premise.
I meant it wasn't a governments mandated monopoly - I agree with you and that they built a monopoly through anti-competitive practices.
But my point is that didn't last as the market punished them for it and made them irrelevant. The market moved to mobiles and web and today they are a good player in the industry.
Even on desktop where they still enjoy a healthy margin, it's not monopoly: Windows is ~80% while Mac OS and others take the other 20%.
> But my point is that didn't last as the market punished them for it and made them irrelevant. The market moved to mobiles and web and today they are a good player in the industry.
This was your point and it's also what I addressed:
> The only monopolies are government-granted, otherwise startups quickly eat their lunch.
You claimed that monopolies are only possible through government regulation, because government regulation creates a barrier to entry that's easily surpassed by larger companies.
I provided proof illustrating that monopolies have been built through private agreements absent of government regulation.
