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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 181.30-0.5%Dec 11 3:59 PM EST

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To: ohohyodafarted who wrote (62812)4/19/2007 12:39:06 PM
From: Art Bechhoefer  Read Replies (1) of 196920
 
why did our government screw MSFT for overcharging it's customers?

In that case, MSFT already had about 90% of the market and was able to charge prices for its software well in excess of cost. Furthermore, by bundling its own browser with its Windows software, MSFT effectively excluded Netscape from the market, because anyone preferring Netscape would have to pay both Netscape and MSFT for the unusued part of its software.

MSFT clearly was in the position of a monopolist, opening itself to charges of unfair pricing practices. But this was only true because the bundling of its own browser effectively cut Netscape out of a market previously dominated by Netscape.

Note also that today MSFT announced a $3 version (yes, that's correct - $3) of Windows for markets in Asia (e.g., China). That price would indicate a lot of extra profit built into the version for the rest of the world. But it also suggests a way to stop piracy of MSFT software in China, which has been going on unabated for years.

Art
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