A) Is Microsoft a monopolist? Why? Why not? B) What are other examples?

Ans. A)

Microsoft is a multinational technology corporation that designs, develops, produces, licenses, and supports, computer hardware and software, personal computers, and cloud computing.

The global market shares of Microsoft in the markets of desktop and laptop are 77% and 87.8%, respectively. In the global operating system market, Google Android is the market leader with a share of more than 50% including smartphones, tablets, laptops, and PCs together.

Statistically, Microsoft does not qualify to be called a monopoly due to significant competition from other technology companies. Markets are diversified and segregated. Microsoft emerges as a leader in a few and takes a backseat in a few. All markets that it deals in are monopolistically competitive or oligopolistic due to no natural barriers of entry and exit but artificial ones created by incumbent firms.

It resembles a monopoly in the personal computer operating system due to windows. Windows has become a de facto standard for all professional and personal computing spaces and enjoys a share of approximately 90%.

However, the market has a relevant presence of close competitors like Apple.

Ans. B)

Currently, no company in the world can be considered an absolute unchallenged monopoly. De Beers Group maintained a close monopoly in the market of diamond mining, manufacturing, and retail for almost 100 years with a market share of more than 80%. However, increasing awareness, and regulations have significantly reduced its market share that stands 35% as of 2018.

Luxottica is a hidden monopoly in the market of eyewear, being the largest eyewear conglomerate in the world. It is vertically integrated to design, innovate, produce, distribute, and sell all types of eyewear and is the owner of major eyewear and eyecare brands.