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MICROSOFT PROBE RENEWED : JUSTICE DEPT. SEEKS DATA ON NET PRODUCTS.


Byline: Evan Ramstad Associated Press Associated Press: see news agency.
Associated Press (AP)

Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world.
 

The Justice Department is investigating how Microsoft Corp. sells its Internet software in an effort to determine whether the company is trying to stifle competition.

The Redmond, Wash.-based corporation announced Thursday that it is the target of an inquiry and promised to comply with antitrust Antitrust

The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade.
 regulators' request for documents.

It is the first time the Justice Department has sought information from Microsoft since summer 1995, when federal officials focused on the company's plans for an on-line network.

While the Justice Department for months has said its investigation into Microsoft is ongoing, lawyers and observers of the software industry had perceived it as dormant Latent; inactive; silent. That which is dormant is not used, asserted, or enforced.

A dormant partner is a member of a partnership who has a financial interest yet is silent, in that he or she takes no control over the business.
.

Last month, Netscape Communications Corp., the leading maker of software for finding and publishing information on the Internet's World Wide Web, urged antitrust regulators to examine Microsoft's practices and plans for its Internet products.

Netscape said Microsoft is using its dominance in personal computer operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap.  to influence computer makers, Internet service companies and others into making Microsoft's software the only choice for accessing the Internet.

Netscape accused Microsoft of charging PC makers less for its Windows 95 operating system operating system (OS)

Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs.
 if they don't also install competitors' Web browser The program that serves as your front end to the Web on the Internet. In order to view a site, you type its address (URL) into the browser's Location field; for example, www.computerlanguage.com, and the home page of that site is downloaded to you.  programs.

Microsoft has maintained Netscape's accusations are an attempt to divert attention from the release of a Microsoft browser browser

Software that allows a computer user to find and view information on the Internet. The first text-based browser for the World Wide Web became available in 1991; Web use expanded rapidly after the release in 1993 of a browser called Mosaic, which used
 program that matched many Netscape features.

William Neukom, Microsoft's senior vice president for law and corporate affairs, said Netscape's complaints are reminiscent of allegations made by other competitors that the Justice Department already has reviewed.

``It is disappointing that our competitors continue to seek government intervention in the competitive process rather than concentrating on improving their products,'' Neukom said.

In statements early last month, Microsoft specifically denied the charge that it had used pressure tactics on PC manufacturers. A computer newspaper, PC Week, published a front-page article Aug. 26 quoting seven PC makers anonymously detailing price discounts and marketing incentives from Microsoft to use its browser on their PCs instead of Netscape's.

Attorney Gary Reback, outside counsel for Netscape and an advocate for other companies who have fought Microsoft, said he was glad to see the Justice Department take up the issue.

``On the one hand, I would say it's about time It's About Time may refer to:

Television
  • It's About Time (TV series), a 1966 American television show.
Theater
  • It's About Time (musical), a 1951 Broadway production.
,'' Reback said. ``On the other hand, there's still time for the government to get in there and maintain a free and open Internet that would benefit all of us.''

However, Netscape faces a legal challenge since it controls about three-quarters of the market for Web browsers The following is a list of web browsers. Historical
Historically important browsers
In order of release:
  • WorldWideWeb, February 26, 1991
  • Erwise, April 1992
  • ViolaWWW, May 1992, see Erwise
.

The Justice Department's antitrust division has had Microsoft's business practices under scrutiny since 1993. In 1994, the agency forced Microsoft to cease discounting practices that had tilted the competitive landscape in favor of its MS-DOS MS-DOS
 in full Microsoft Disk Operating System

Operating system for personal computers. MS-DOS was based on DOS, developed in 1980 by Seattle Computer Products. Microsoft Corp. bought the rights to DOS in 1981, and released MS-DOS with IBM's PC that year.
 and Windows operating programs.

Critics said the settlement came too late to have a significant impact on the competitiveness of that market. Microsoft's products run the basic functions of nearly 90 percent of personal computers.

Last year, the Justice Department examined Microsoft's plan to combine software for accessing its new on-line service with a new version of the Windows operating system. Justice lawyers took no action.

The on-line service, while it attracted 1 million subscribers, was not the threat that rivals such as America Online See AOL.  Inc. and CompuServe Inc. feared.

Instead, the Internet has proven to be more popular, and Microsoft has restructured its service to work more closely with the global public data network.

CAPTION(S):

2 Photos

Photo: (1--Color) A free trial offer for the Microsoft N etwork appears on its Web site.

(2--Color) Browsing the Web

Netscape Communications Corp., the leading maker of Internet browsersoftware, has urged regulators to examine Microsoft's practices and marketing of its competing products, particularly internet Explorer Microsoft's Web browser, which comes with Windows starting with Windows 98. Commonly called "IE," versions for Mac and Unix are also available. Internet Explorer is the most widely used Web browser on the market. It has also been the browser engine in AOL's Internet access software. . Here are some of the offerings found on the two browsers

Associated Press
COPYRIGHT 1996 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:BUSINESS
Publication:Daily News (Los Angeles, CA)
Geographic Code:1USA
Date:Sep 20, 1996
Words:626
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