Question

Global Gaming SesamWace 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 Parallelwodd Parallelworld 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 SesamWace, software, Parallelwodd was designed using the open source methodology that allowed all users to potentially be co-developers. Beyond the allure of the open source tactic, Parallelworld'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 to economic stability, famous individuals and even weather patterns. The SesamWace.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 word.Alarmed 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 Competition By 2006. SesamWace, was by far the dominant software company in the wodd 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 SesamWateor 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, Sesam Wace, cited a cause in the online contract that most users signed with the original Parallelwodd 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. 1. What are some of the anti-competitive behaviours of which SeasamWare might be guilty? (5 marks)

Answer 1

There are several anti-competitive behaviors of which Seasam Ware could be guilty, these are as stated below:

• They could engage in cartel activity that would limit the supply of various Gaming Items or Goods and services by building good relations among various software developer companies, so, they could fix the pricing and they could regulate the supply items.
• For using the software, they could offer very lowest pricing or no pricing, so many users will start using such products and they will be getting habituated and addicted with their gaming software.
• They could acquire various Gaming competitors, so, they could retain better market share in every country, and they could also penetrate to several countries by introducing online payment.
• They could start charge more to their customers in later period as to improve profit margin in selling their products and services.