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"The assumption is the playing field is level."

The playing field has never been level and to assume so is being utopian. Furthermore, who do you think should level the field? The government? They make decisions based on who is the highest bidder. Not very level in that case wouldn't you say?

The assumption is the playing field is level between companies who are not monopolies in an efficient market. Yes companies will create advantage for themselves. They were able to to do so against non-monoplies because the playing field was level - they were allowed to exploit their strengths to gain competitive advantage.

When the playing field is not level, your strengths (such as being the first to market, best browser) cannot be exploited to gain competitive advantage because something 'unlevel' is blocking (such as Microsoft forcing Dell to not do business with Netscape under threat of losing Dell's only opportunity to be a Windows reseller)...that's an abuse of monopoly power.

Yes, the government can give one company an advantage over another. It can also help a small company get bigger by being a big customer, but in fact, the government is the worst customer any company has. Having a government contract is no bed of roses and often costs an inexpericenced company far more than they'll ever earn. While that is happening, their competition, who has no government customizations to fulfill, is under market pressure to produce a cost-effecive product/service with wide (beyond the government) acceptance, and gain the revenues that come with that. That's the company that will be healthier, usually.

You raise good points, but I think we should stay closer to thread topic.