In both the US and Europe debate about competition in the software industry has focused on the question of “bundling” or “tying” products to the operating system in a single, integrated package. This article argues that the widespread use of tying, even by dominant players in this industry, indicates that this is typically a beneficial practice. European regulators should not assume that tying is per se illegal. Rather, they should embrace the arguments made recently by a US appeals court that recognized that a “rule of reason” approach is more appropriate given that bundled software often delivers significant consumer benefits.
World Competition