Windows is overpriced says top US economist

By Sarah Left, 20 November 1998 17:43

NEWS Microsoft's Windows operating system is overpriced and that is hurting consumers, according to top US economist Frederick Warren-Boulton, who testified under cross-examination yesterday at the Department of Justice anti-trust trial. Warren-Boulton said Microsoft's monopoly market position had allowed it to raise prices above a competitive level. The software giant's defence lawyers suggested that other operating systems - notably Linux - represented a competitive threat to Microsoft. But Warren-Boulton denied this, citing a Microsoft memo from December last year that failed to mention any other operating system as a barrier to Microsoft's pricing plans.

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