drhowarddrfine - 9:08 pm on Mar 9, 2013 (gmt 0)
I've got a minute so I'm going to write an analogy and hope I don't get interrupted.
Let's say you have a grocery store, Al's Grocery, in your neighborhood and everybody goes to that one grocery store because they have everything you want. You could go to the other grocery stores out there but Al's was the first, you're used to them, and they do a good job for you. You especially like Al's Branded Meats. Like I said, everybody uses them.
Now let's say you run a meat packing company. You could sell your meat to the other grocery stores but nobody buys meat there. They always go to Al's. So you go to Al's and ask them to sell your meat. "No," they say.
So what are your options? 1) Sell to the other grocery stores (but hardly anyone buys there) or 2) go out of business. Actually, since you can't make enough sales on the first option, you'll go out of business anyway.
That is how Microsoft locks out competition in the browser market. But what about Apple? Aren't they a monopoly on phones and don't they lock out or restrict competitors on their products?
In many ways they do but let's go back to the grocery stores. One of those grocery stores, Jim's Grocers, also sold meat, but their meat was better than Al's. It was more expensive but Jim delivered and no one ever got less than Prime, juicy cuts, but you paid the price for it!
Now let's say you approach Jim's to sell your meat but Jim says, "No". Jim says he's really particular about what product he sells and he hand selects every cut. He only sells Jim's brand of meat.
So why can Jim get away with that? Market share. You can always go somewhere else to sell your wares and Jim turning you down won't affect you or your competitors much. However, Al turning you down not only affects you but every other meat packer around and, since Al turns everybody down and controls almost all the meat selling business, you have nowhere else to turn!
So, I blurted that out real quick and got it off my chest.