Unbundling Microsoft: U.S. judge rules the issue is marketing, and for that, old antitrust laws apply

Article Abstract:

A US District Court's 'preliminary injunction' against Microsoft is based on market power rather than the intricacies of software programming. Judge Thomas Penfield Jackson's ruling prevents Microsoft from requiring computer manufacturers to include its Internet Explorer browser software with its Windows OS that powers more than 80% of the world's PCs. The ruling does not represent a complete Government victory, but it makes it more difficult for Microsoft to position Internet Explorer. Microsoft says more evidence presented to Jackson and his appointed 'special master,' Harvard Law School professor Lawrence Lessig, will help the company win in court. Jackson referred to two Supreme Court rulings that ruled whether the 'eyes of the buyers' considered services as 'two separate product markets.' One 1984 case involved anesthesiology services and whether they were separate from a hospital's services. A 1992 case examined photocopier equipment and copier parts and copier service.

Antitrust law, Antitrust Issue, United States. District Court. District of Columbia

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Microsoft to appeal ruling on browser, seeing 'error': offer plans to comply, but critics dislike it

Article Abstract:

Microsoft said it would appeal a Federal District Court judge's temporary order allowing PC manufacturers to unbundle its Internet Explorer browser from its Windows OS. The company described Judge Thomas Penfield Jackson's ruling as an 'error' and 'unfortunate.' In another move, Microsoft introduced a plan that it says complies with the court order during its appeal. PC manufacturers can choose between the current bundled product or the original Windows 95 version with slight programming changes, which represents an older OS. The original Windows 95 lacks compatibility with online service such as AOL and CompuServe, the Quicken 98 personal-finance program, or the Lotus Notes groupware software. Microsoft added that problems would extend to handling data from modern computer hard drives. The Justice Department and Microsoft opponents criticized the move, but Microsoft said it illustrates how Internet software plays a key role in Windows.

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U.S. reviews a bid made by Microsoft; competition an issue in offer to buy WebTV

Article Abstract:

Microsoft has been asked by the Justice Department to turn over internal documents that relate to the software company's planned $425 million acquisition of WebTV Networks. Experts believe that the government's close scrutiny of the planned takeover will prove to be lengthy and expensive. However, it does not necessarily mean the Justice Department will end up challenging Microsoft's purchase. Executives at Microsoft believe their acquisition of WebTV has prompted other companies to move into the field, citing Oracle's deal to acquire Navio. Microsoft is confident that the government will not prevent it from purchasing WebTV. It is however, leery of the investigation being dragged out, which could provide an opportunity for others to edge ahead of it in the market.

Software, Mergers, acquisitions and divestments, Internet, Company acquisition/merger, WebTV Networks Inc.

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