What does that have to do with business-to-business transactions? Microsoft doesn't care about your subsidies. Oracle doesn't care about your tax breaks. All they care about is how many users you can bring or how many zeroes you can put on the contract.

This is actually what should and would happen in a free market.

This sort of coordination problem is actually a classic failure of free markets (it was even covered in my Economics 101 course). Coase's Theorem only applies when transaction and negotiation costs are zero. In any real world scenario where transaction costs are nonzero, you'll see failures like this.