Tying Arrangements

Tying Arrangements

You are a federal prosecutor who is part of a team that is bringing charges against a large software company. Over the years, this company is alleged to have forced distributors to buy its products in quantities that are dictated by the company, to refuse to buy from other companies, and to install only its products on computers that they sell. As a result, countless other companies have gone bankrupt, and many others are suffering irreparable damage. In its defense, this company states that it is only “winning fairly” and that it charges everyone a uniform low price. Answer the following questions:

a. What specific laws are being violated by this company?

b. In what way are these laws being violated?

c. Does the fact that the company is charging uniform low prices have any legal bearing o n t he c ase?

Solution: