What is Imperfect Competition?

Imperfect competition: refers to markets where perfect competition cannot be maintained because there is at least one buyer (or seller) that is large enough to affect market prices, and therefore faces a downward sloping demand (or supply) curve. Including various incomplete factors, such as monopoly competition.

Imperfect competition

Imperfect competition, workable competition or feasible competition.

Imperfect competition was proposed by American economist JMClark for the impracticality of the concept of perfect competition. Clark pointed out that although perfect competition is accurately defined and elaborated by economists, it is impossible and has never existed in the real world. The greatest significance of its application is that it can be used as a starting point for people to analyze problems or judge right and wrong Standards of behavior. In Clark s view, as long as one condition of perfect competition is not met, it is reasonable to have other conditions not met (George Stiegler) has given a very appropriate example of this argument, assuming that People in this industry have rapid mobility, but knowing nothing about the surroundings, they will look for work between the two cities, which keeps the flow of personnel at equal salary levels always saturated. But if labor mobility is smaller, this tendency to exceed equilibrium will be corrected. ) This question later became

(1) pure or strict competition;

The characteristic of an imperfectly competitive market is that there is a certain degree of

The imperfect competition market is divided into monopoly competition, oligopoly, and complete monopoly market.

Founded in 1975, Microsoft has been subject to antitrust lawsuits in many countries and regions around the world since the 1990s. The following is a review of the Microsoft monopoly case:

Gates and his Microsoft Empire

Incomplete competition

In 1990, the US Federal Trade Commission investigated the possible conflict between Microsoft and IBM in the personal computer software market, and was taken over by the US Department of Justice.

In October 1997, the US Department of Justice accused Microsoft of monopolizing the operating system and illegally bundling browser software with Windows operating system software.

In October 1998, the trial of Microsoft's monopoly case began.

In June 2000, the U.S. District Court ruled against Microsoft's split.

In June 2001, the appeals court overturned the magistrate's ruling on the browser case. Microsoft escaped the fate of being split, but it was convicted of antitrust violations.

In November 2001, Microsoft and the US Department of Justice reached a compromise. In 2002, the federal court approved the settlement agreement, and Microsoft faces punitive measures for at least five years.

Incomplete competition in the EU

In December 1998, the United States Sun Microelectronics filed a complaint with the European Commission against Microsoft Corporation and opened an EU antitrust investigation against Microsoft Corporation.

In March 2004, the European Commission determined that Microsoft had abused its dominant position in the personal computer operating system market, required it to make corresponding changes, and issued a huge fine of 497 million euros.

In June 2005, Microsoft officially launched the Windows operating system without its own media player.

In July 2006, the European Commission decided to fine Microsoft again for a total of 280 million euros.

In March 2007, the European Commission threatened to fine Microsoft again with a fine of 3 million euros per day.

In September 2007, the European Court of First Instance rendered a verdict on Microsoft's appeal to overturn the European Commission's antitrust decision.

In October 2007, Microsoft agreed to fully implement the penalty decision, and the EU's antitrust battle against Microsoft came to an end. Windows operating system makes many software developers "hate the bones"

Imperfect competition in South Korea

In April 2001, South Korea's Daum Communications Co. sued Microsoft and its Korean subsidiary for alleged unfair business practices in the instant messaging software business. In November 2005, the two companies reached an agreement in which Microsoft paid Daum $ 10 million in cash to settle an antitrust lawsuit.

In November 2004, Microsoft s media player rival RealNetworks accused Microsoft of bundling MSN instant messaging software in its Windows operating system in violation of the principle of fair competition. The Korean Fair Trade Commission (KFTC) immediately expanded its investigation .

In 2005, KFTC imposed a fine of $ 35.43 million on Microsoft and unbundled MSN instant messaging software in the operating system. Microsoft appealed immediately.

windows operating system

In May 2006, the KFTC rejected the appeal, and Microsoft appealed to the Korean High Court.

In October 2007, Microsoft withdrew its appeal, eventually accepting a huge fine of $ 35.43 million and unbundling MSN instant messaging software in the Windows operating system. Microsoft's antitrust case in South Korea has come to an end.

Imperfect competition in Japan

In July 2004, Microsoft was accused by the Japan Fair Trade Commission of stating that some of its licensing agreements with Japanese personal computer vendors violated Japanese antitrust laws. Microsoft is suspected of forcing personal computer vendors to accept some mandatory clauses, requiring them to guarantee Microsoft sued in court. Microsoft is not satisfied with the allegations, and it is said that it will take several years to finally resolve the dispute.