It's NOT a free market. Due to Microsoft's market power the competition find it impossible to create a product good enough to compete. Even if it's the best new OS ever, people still won't buy it because of lack of compatibility. And any attempts to make it compatible attract patent lawsuits.
Many governments (US, EU, South Korea) have ruled that MS holds a monopoly position in the market and have abused it to cut out competition. Pathetic fines haven't changed that; only radical (but brief, I'm a free-market supporter) intervention will work. Such as breakup.
Dear anti-EU people: its existence has kept Europe competitive with the US. We'd be a lot worse off without its economic union. On the political side it just needs to be more transparent and democratic.
