To: Reginald Middleton who wrote (15411 ) 12/23/1997 11:07:00 PM From: Keith Hankin Respond to of 24154
No, NSCP never had a monopoly. The reason that they set the standards was because no one else was trying to. Thus, until MSFT competed, NSCP's ability to control standards was never tested. Yes, they had 92% of the market, but they never demonstrated the ability to *control* this market. When they attempted to do so, it became clear that they were in no situation to do so against MSFT's power. However, in the absence of MSFT, they may have been able to demonstrate monopoly power since there may not have been anyone with the power to challenge their direction. When NSCP had 92% market share, the Internet software market was still a fledgling industry. So to say that NSCP had a monopoly is simply not true. Remember, the key to defining a monopoly is not market share but the ability to control, at will, the industry. And NSCP never had control over the industry. Yes, NSCP demonstrated itself to be the leader initially, and this allowed them to create products that became the standards for the industry. But there was no barrier for entry of other companies from usurping this role. This is due to mainly two facts: 1. The industry was still fledgling. 2. There existed at least one company with the resources and will to enter as competition. And I would argue that NSCP's inability to control the industry was almost inevitable once MSFT began to compete, because they were up against the leveraging of the MSFT monopoly, which was strong enough to muscle in on the action, regardless of NSCP's market share or anything that NSCP did. However, in the absence of MSFT, it is possible that NSCP might have had enough power to maintain control over Internet standards, and thus would be considered to be a monopoly.