ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, September 20, 1996 TAG: 9609200044
SECTION: BUSINESS PAGE: A-5 EDITION: METRO
DATELINE: NEW YORK
SOURCE: Associated Press
The Justice Department is investigating how Microsoft Corp. sells its Internet software to determine whether it is trying to stifle competition in the fastest-growing part of the technology industry.
The company announced the inquiry Thursday and said it would comply with antitrust regulators' request for documents. It is the first time the agency has sought information from Microsoft since summer 1995, when it explored the company's plans for an on-line network.
A Justice Department spokeswoman declined comment on the statement by Microsoft.
While the agency for months has said its investigation into Microsoft is ongoing, lawyers and observers of the software industry have perceived it as dormant for some time.
Last month, Netscape Communications Corp., the leading maker of software used to find and publish 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 to influence computer makers, Internet service companies and others into giving Microsoft's Internet software greater prominence over competitors.
Netscape complained that Microsoft pushed PC makers to make its program the easiest choice for computer users to access the Internet. Netscape accused Microsoft of charging PC makers less for its Windows 95 operating system if they agree to make competitors' Web browser programs less accessible to computer users.
Microsoft has maintained Netscape's accusations are an attempt to divert attention from the release of a Microsoft browser program that matched many of the qualities of Netscape's product.
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 has reviewed previously.
``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 a statement.
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 and Windows operating programs.
Critics said the settlement came too late to have a significant impact on the competitiveness of that market. Today, 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. It took no action.
The on-line service, while it attracted 1 million subscribers, was not the threat that rivals such as America Online Inc. and CompuServe Inc. had 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.
There is more at stake in the battle involving Netscape, Microsoft and others over Internet browser and publication software. Such programs are reshaping the way people use computers, eliminating many of the differences between working with data inside a computer on a desktop and one that could be located halfway around the world.
LENGTH: Medium: 70 linesby CNB