Bryan Caplan says there are only two ways for a monopoly to form: government protection, or being the best.
“If the firm has a monopoly because the government made competition illegal, the solution isn’t antitrust; it’s legalizing competition. If the firm has a monopoly because it’s the best, the solution isn’t antitrust; it’s a little freakin’ appreciation.”
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There are many other ways for a monopoly to form involving psuodo government action or reqular government inaction. Standard Oil did not form because they were the best. The formed because they were the biggest in certain areas and leveraged that to become the biggest everywhere. Government action is most often responsible for the formation of monopoly but Microsoft has never been the best at writing software. Instead Microsoft leveraged sophisticated understanding of contract law and business process to their presint position. If you want to say that is government action you may be right from a certian angle but how would a supplier with a suppior product have made it in the market place? Certainly nobody wants to stick with the quality of Microsoft's recent products…not even Microsoft.
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