Article Abstract:
Microsoft successfully appealed the overturn of its antitrust settlement, but it still faces investigations from the Justice Department. In Jun 1995, the US Court of Appeals announced that the 1994 antitrust agreement between Microsoft and the Justice Department was valid. The court also removed Judge Stanley Sporkin, who had rejected the settlement in Feb 1995, at Microsoft's request. The Justice Department is responding to criticism by investigating Microsoft on other fronts. The department filed suit against Microsoft's proposed buyout of Intuit, effectively halting the deal. The department is also currently reviewing the bundling of the Windows 95 operating system with software that links to a proposed on-line service, and a Windows 95 licensing agreement that would bar PC vendors from suing Microsoft for patent infringement. The Appeals Court also indicated that the previously excluded Windows NT operating system could be brought under the settlement if it began to replace Microsoft's Windows and DOS operating systems.
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Article Abstract:
Microsoft and Netscape Communications exchange letters that threaten to escalate the marketing battle between the two companies into a legal battle. A Microsoft letter to Netscape orders the company to stop creating marketing material that compares the prices of the companies' respective Internet products. Microsoft also warns Netscape that by implying that Microsoft Windows NT Workstation can be used as the basis for a Web server, Netscape is violating the customer-licensing agreements, which state that the product cannot support more than 10 Internet connections at the same time. Microsoft encourages users to buy a more expensive version of Windows NT that costs close to $1000 and comes bundled with Microsoft Internet software. NT Workstation costs about $300 and, according to Netscape and others, the product will work with third-party Internet products to create a less expensive Web server. Microsoft's efforts to capitalize on the arcane licensing restrictions are seen as anti- competitive.
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Article Abstract:
US Justice Judge Stanley Sporkin's decision to derail the antitrust consent decree between Microsoft and the US Justice Dept has spurred Exec VP Steven Ballmer to make strong statements about criticisms directed at the software giant. Ballmer states that he and his corporation engage in ethical behavior in marketing and developing software products that currently dominate US markets. Microsoft and the US Justice Dept are appealing Sporkin's action and Ballmer claims that broadening judicial authority in antitrust cases sets a dangerous precedent for the rest of the industry. Ballmer indicates that Microsoft employees are disagreeing about how the company should respond to the many negative comments about Microsoft circulating in the computer world. Suggested actions at Microsoft range from developing an internal code of conduct to more confrontations with the firm's critics.
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