I'd like to point out one situation where Microsoft's consolidation and "monopoly" actually created a better product, and fostered competition. I give you DirectX.
Before DirectX, game manufacturers had two choices: write to several hardware drivers that ship with the game, and consequently must be supported by the game manufacturer, or write to some intermediary layer that HOPEFULLY the graphics industry supports (before DirectX, VESA was one of those standards). Often, game manufacturers wrote to BOTH.
Along comes Microsoft who proposes a DirectX standard. Sure, the first several iterations were sloppy and slow. Game manufacturers were uneasy about adopting the standard, but they eventually did. As long as the video card manufacturers wrote drivers that included hooks into DirectX, games that ran on them were smooth, fast, and beautiful.
Now, the game manufacturers don't have to worry about some esoteric hardware layer interface, the video card manufacturers don't have to worry about maintaining a compatability with their legacy products. If they've architected themselves into a corner, they can throw the design away, and start again.
By creating standards, you filter the noise. By creating standards, you free the industry from the minutae that can destroy ideas. By creating standards, you can also create a monopoly. It is possible to stifle innovation because it strays from the standard. The courts have to weight the pros and the cons.
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