Question

Global Gaming SesamWare is a Japanese software company responsible for the most popular open source software available on the market today. In operation since the mid-1990s, SesamWare initially gained international acclaim with an online, multiplayer, fantasy dimension game called Pacallelwodd Parallelwodd was the most popular game in the world between 2004 and 2007, with over 300 million worldwide gamers at its peak in 2006. Today, the SesamWare, software-initially installed as part of the bundle downloaded by hundreds of millions of gamers around the globe to play Parallelworld is used by those same hundreds of millions of users for all other computer and online activities. The open source code was so user friendly that the software was easily adapted to every facet of computer life for all platforms and operating networking, navigation and security systems. Outrage Like other SesamWare, software, Parallelworld was designed using the open source methodology that allowed all users to potentially be co-developers. Beyond the allure of the open source tactic, Parallelwodd's fame grew from its realism. The initial premise of the game was an uncanny replication of the current global scenario, including the minutest details of everything from geography and politics economic stability, famous individuals and even weather patterns. The SesamWare global marketing campaign urged users to become the virtual incarnation of almost anybody in the world and to use their character status to change, subvert, continue or improve the course of civilization. In other words, users could control the world -virtually Millions of people accepted the licensing agreement and downloaded the open source game ware, adopting a character and participating in the dynamism of the parallel wodd Alamed and eventually outraged with the attention given to their online character versions and the actions and decisions being made in their likenesses, governments, policy makers and other famous individuals called for the plug to be pulled on the game, citing intellectual property (IP) infringements It took years for the various cease and desist orders to be enforced across the globe. The unprecedented popularity of the game internationally, coupled with the open nature of its development and SesamWare, conducting all transactions online, caused the legal process to progress slowly. In fact, by the time most countries got around to shutting down the game, most users had already lost interest. Real World CompetitiopBy 2006, SesamWare was by far the dominant software company in the wedd, having acquired many of its competitors along the way. Initially, when the licences were first made available to users, the contract agreement obligated users to pay an annual fee of USD 5.99 to keep using the software. This low fee made it nearly impossible for many software companies to compete, and most of the competitors were either bought by SesamWare or went out of business within three years. The fee remained relatively unchanged until the competition phased out. But by 2010, the annual licensing fee had increased to USD 150. When asked to justify the increase, SesamWate, cited a clause in the online contract that most users signed with the original Parallelworld software bundle agreement, it stated the company could increase the annual licensing fee without customer notification. SesamWare was once again at the centre of an international lawsuit, this time for subverting free market competition 1. What are some of the anti-competitive behaviours of which SeasamWare might be guilty? How did/might SesamWare's behaviour adversely affect the free market competition upon which international trade depends? (5 marks)

Answer 1

1. Some of the anti competitive behaviors of which the SeasamWare would feel guilty about might include:

• The refusal behavior to deal with - The company had concluded with the other companies to remove them from the current market as a result of the inappropriateness to compete with those companies.
• Problems related with the acquisitions - Acquisition was carried out mainly to irradicate competition in order to attain power in the market place.
• Situation of dominance - SeasamWare had raised many competitors to the market which had made them dominance in the industry which had promoted more force in the market.
• The scheme of pyramid - The people interested in the game were tempt to gain the license which provide profit to their company in its long term.

The SeasamWare's behavior which had badly affected the free market competition where by which the international trade depends on as:

• The company had conducted an online transaction which had caused the legal process to come up slowly which had of the time made other countries to close the game due to which most of their users had lost an interest in their gaming internationally.
• The low payment initiated by the company to the users in order to use their software made other companies to lose their power to compete in the market which made them to shut down their business.
• The annual license fee made an increase in the market in which the company explanation was that in the online contract they have the choice of increasing the fee without the customer notification which made the company to get infront of the international law for ruining the market competition which had altogether affected the international trade.