Question

Judge Mark Griffiths finds that Moodle is a relentless and predatory monopolist. Judge Griffiths says that:

• Moodle established and maintained the Blackboard monopoly by using the "applications barrier to entry," which gives Moodle enduring monopoly power.
• Moodle harnesses independent software vendors to create products that take advantage of new application program interfaces (APIs) built into each release of Blackboard.
• Gives PC makers no choice but to install Blackboard, at whatever price Moodle decrees.
Moodle maintains that it has sought only to innovate, serve customers, and protect its intellectual property.
Moodle says that it is not a monopoly because:
• It competes with itself by continually releasing "new and improved" versions of Blackboard.
• Technological change will ensure that any dominance it enjoys is fragile.
• Already, "middleware" (applications like RealNetworks) have their own APIs, which new and existing applications might hook on to liberating software developers from the operating system beneath and weakening the applications barrier to entry.
a. Do you think the Court is correct in finding Moodle a monopoly? Explain.
b. Do you think Moodle’s counterclaim is correct? Explain

Answer 1

The court's decision of finding Moodle a monopoly is justified. Moodle has established dominance in the market through barriers to entry and has enduring monopoly power.

Step-by-step explanation:

In order to determine whether or not Moodle can be considered a monopoly, we need to consider the definition of a monopoly. A monopoly refers to a situation when a single company or entity has exclusive control over a particular market. This control can be achieved through barriers to entry that prevent or discourage competitors from entering the market. In the case of Moodle, the court finds that it established and maintained a monopoly in the market for educational software by using the 'applications barrier to entry,' which gave them enduring monopoly power.

On the other hand, Moodle argues that they are not a monopoly because they compete with themselves by continually releasing new and improved versions of their software. They also claim that technological change and the introduction of middleware have weakened the 'applications barrier to entry' by providing alternatives for software developers.

Considering these arguments, it is reasonable to say that the court's decision of finding Moodle a monopoly is justified. Moodle has established dominance in the market through barriers to entry and has enduring monopoly power. While Moodle's counterclaim does provide some valid points, it does not negate the fact that Moodle has a dominant position in the market for educational software.