Article Abstract:
Microsoft said it would delay initial shipments of its Windows 98 OS to computer manufacturers until May 18, 1998, to continue settlement discussions with the federal and state governments. The announcement came less than an hour before the Justice Department and attorneys general from 20 states had prepared to file a joint antitrust action against the company. Other Microsoft marketing concessions include possibly amending or dropping tactics that concern prosecutors, such as forcing computer vendors to feature Microsoft-only products or display Microsoft programs a certain way, according to officials and executives familiar with the negotiations. Microsoft, which originally planned to release Windows 98 on May 15, said the new product still is scheduled to reach stores on Jun 25, 1998. The states's proposed lawsuit would have reflected the Justice Department suit in attacking various Microsoft tactics including bundling, as well as packaging WebTV for Windows and Outlook Express, several officials said.
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A computer-science expert held that Microsoft should not include its Internet Explorer browser software in its Windows OS, despite a Microsoft attorney's efforts to challenge his testimony. David J. Farber, a senior computer-science professor at the University of Pennsylvania, is a witness for the Government in its antitrust suit against Microsoft. Farber upheld the Government's central argument that Microsoft had bundled the two independent products to weaken the competition. Steven Holley, an attorney representing Microsoft, disagreed with Farber's position that outside software developers can adjust software to organize files. Windows developers rely on the files once they entered the OS, Holley said. Farber replied by disputing the notion that Microsoft has sole power to arrange the files. Discussions also included the deletion of 13 major files from Windows and an individual file used by Windows as well as Internet Explorer.
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Internal memos and depositions from Compaq Computer Corp. introduced by the Justice Department in its antitrust lawsuit against Microsoft Corp. show that the PC manufacturer was concerned about changes to its business model, alterations to a line of computers and possible loss of two contracts, yet it agreed to make Microsoft's Internet Explorer its browser of choice over Netscape Communication Corp.'s. An earlier memo said Compaq wanted to feature Netscape's "brand leader" browser while another indicated that Microsoft was not pleased with the Netscape icon and wanted it removed from the desktop. Government attorney David Boies used the documentation to depict Compaq, the world's largest personal computer maker, as afraid of the Redmond, Washington software concern.
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