A duopoly can be just as anticompetitive as a monopoly

Lightning struck the computer industry earlier this month with the publishing of U.S. District Judge Thomas Penfield Jackson’s findings of fact in the Microsoft Corp. antitrust trial. Jackson’s findings supported the government’s case that Microsoft is a monopoly, based on the principle that a company that holds a market share of greater than 70 per cent generally is considered to be a monopoly. This fact does not, in itself, mean that Microsoft has violated antitrust laws, but it is an essential first step in that process. The findings also stated that due to its monopoly position, Microsoft could charge a price above that which could be charged in a competitive market.