Question

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2. What are some of the anti-competitive behaviours of which SeasamWare might be guilty? (5 marks)

Global GamingSesamWare 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 Parallelworld. 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.IP 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,

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 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 world.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 shuttingdown the game, most users had already lost interest. Real World CompetitionBy 2006, SesamWare was by far the dominant software company in the world,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, SesamWare 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

Answer 1

EXPLANATION:

Dominance and Monopoly: It was the leading force in the software industry that brought many other competitors. This allowed them to enforce terms. Pyramid Scheme, the players were drawn to accept licenses containing conditions that were meant to support the long-term organization, not the licensees. SesamWare declined to compromise other firms, making them economically excluded from the market insufficient to competitively. The expression "more than meets the eye," with respect to acquisitions, precisely fits the case.The primary explanation for the acquisitions tends to be the elimination of rivalry to achieve market supremacy. Predatory Pricing-The initial contract price was too small and many tech firms could not bid for it.The regulation of international law is not a single authority. (FITT) There are, however, several people involved in the implementation and which may potentially impact SesamWare. GATS and GATT have clauses on monopolies and accept governments' authority to counter anti-competitive behaviour.