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Story: Monti to Microsoft: Guilty as charged

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Competition is an essential for a free market o operate fairly. Competition means better consumer wellfare, more innovation and a stronger economy.

If you want evidence of this read Antitrust Law by Richard Posner - 2nd Edition.

Microsoft are an undertaking in a dominant position - as such they are under a duty not to abuse said dominant position.
(btw Apple are not in a dominant position - hence they can engage in practices that Microsoft can not)

Bundling of products is can be an abuse, if you have to buy a Widget, would you be happy if in order to buy said Widget you also had to buy a Blodget along with it?
You would have to pay more money for the Widget and Blodget combined - despite the fact that you do not want that manufacturer's blodget.
Not only this but as consumers will buy the combined widget and blodget other manufacturers will not be able to easily enter the blodget market, and there will thus be a lack of incentive for new blodget manufacturers.
As a result of this there will be little innovation of blodgets - why would your monopolist try and build a superior blodget when there is no competition - and the people who might be able to make a better blodget will not because they have no inventive.

Whilst many people with Media Player have also got many other media players - myself I also have winamp - manufacturers of products like winamp have a much harder time making profits from their product.
So would I have rather paid £10 less to microsoft and not have Windows Media Player, and pay £5 to winamp for their player - Certainly. I would be better off and have a better product.

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