English (United Kingdom)Russian (CIS)
The Effects of Market Power Expansion of the Essential Facility Owners in Software Markets

Authors:

Andrey Ye. SHASTITKO Dr. Sc. (Econ.), Professor, Head of Competition Policy and Industrial Policy Dept. (Lomonosov Moscow State University); Director of the Centre for Studies of Competition and Economic Regulation

Aleksandr A. KURDIN Cand. Sc. (Econ.), Sr. Researcher of Competition Policy and Industrial Policy Dept. (Lomonosov Moscow State University); Sr. Researcher of the Centre for Studies of Competition and Economic Regulation

Abstract:

The article assesses the policies instituted by producers of operating systems, when they aim to boost sales of applied software integrated into their operating systems. It analyses the policies through the prism of the effects they exert on other participants of the markets for operating systems and applied software. To perform the analysis, the authors address the case of the antivirus software markets. This was due to the recent release of Windows Defender (a new anti-malware program developed by Microsoft and integrated in the operating system) and a simultaneous tightening of Microsoft’s policy towards other antivirus software companies. The paper regards Microsoft Corporation as a possible dominating company in the software market. The analysis of the situation in the sphere of operating systems and antivirus software illustrates that Microsoft’s actions can cause the scenarios with adverse consequences for public welfare in both static and dynamic aspects to unfold.

Keywords:

ESSENTIAL FACILITIES, OPERATING SYSTEM, ANTIVIRUS SOFTWARE, MARKET POWER, MARKET DOMINANCE

Download article

For citation: Shastitko A.Ye., Kurdin A.A. The Effects of Market Power Expansion of the Essential Facility Owners in Software Markets. Upravlenets – The Manager, 2017, no. 4(68), pp. 43–52.