For Microsoft, ruling carries fateful tones; Windows delay could curb power and profit
Article Abstract:
Wording of a District Court temporary ruling against Microsoft in a Government antitrust case signals a summer 1998 final ruling that could weaken the software giant. A final ruling could force Microsoft to delay or halt shipments the next two versions of its OS, which powers more than 90% of the world's new PCs. Windows 98 is designed for PCs operating single Intel processors, while the high-end Windows NT 5.0 is targeted to businesses that operate network computers and standard desktops. The Windows 98 versions will generate $3.1 billion from up to 80 million copies between Jun 1998 and Jun 2000, according to Nationsbanc Montgomery Securities. Judge Thomas Penfield Jackson said Microsoft's 'bundling' of Windows and Internet Explorer Microsoft constitutes a 'monopoly' that might enable it to 'acquire another monopoly in the Internet browser market.' Microsoft has positioned itself to branch out from OS dominance to businesses ranging from telecommunications, cable TV, entertainment and travel.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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Why Microsoft is taking a hard line with the government
Article Abstract:
Microsoft's combative stance against the Government regarding its Windows 95 OS and Explorer Internet browsing program stems from their 1995 consent decree. The Justice Department's antitrust division is suing Microsoft for requiring PC makers to bundle its Explorer browsing program with its Windows 95 OS, saying it clearly violates the consent decree. Microsoft insists that it should have the absolute right to determine content and define an integrated product. The software giant says the case could determine whether private companies, or Washington and the courts, will control economic innovation. The Justice Department defends its lawsuit from the abuse of market power standpoint, viewing Windows and Explorer as separate products. Microsoft is using its near-monopoly in OS to leverage its position in the Internet browsing software market, according to Government officials.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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