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Technology Stocks : How high will Microsoft fly?
MSFT 481.60-1.7%2:18 PM EST

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To: Kevin who wrote (6341)4/30/1998 2:28:00 PM
From: Maverick   of 74651
 
States may move quickly on MSFT, part II
''My concern is that there is in fact very active competition, the possibility of
entry by other companies, in this very important area,'' said South Carolina
Attorney General Charlie Condon.

A senior aide in another attorney general's office said ''the problem we want
to address is the exclusionary activities that involve tying and leveraging
Microsoft's monopolistic position in operating systems to unreasonably
restrain competition in other areas.''

A Microsoft spokesman, Mark Murray said Wednesday: ''At this point the
states haven't given us any specific information on their concerns. I would
hope they would tell us before there is any legal action so we can respond and
try to resolve their concerns.''

With Windows 98, Microsoft significantly expands its practice of including
other software products as part of the program. For example, in addition to
Internet Explorer -- which competes head-on with Netscape Corp.'s
Navigator Web-browser software -- Microsoft has embedded in Windows
98 its Web TV software.

Web TV is a Microsoft-owned service that enables people watching
television to also surf the Web. As part of its licensing arrangements for
Windows 98, Microsoft is said to be planning to offer PC makers discounts on
the software if they agree to install circuitry into the computers that would
enable them to receive television signals.

Microsoft has long said that its practice of integrating other software products
was key to the company's future. After last week's federal appeals court
hearing on the Justice Department suit against Microsoft, William Neukom,
Microsoft's vice president for law and corporate affairs, said:

''This case involves a fundamental principal for us, the freedom of
high-technology companies to continue to innovate on behalf of our customers.
Part of innovation has to be integration. We are going to continue to integrate
products.''

The attorneys general and their aides all say they hope to act in concert with
the Justice Department. But several attorneys general said it was important to
act before Windows 98 goes on sale because any law suit will become
significantly more complicated once computer manufacturers begin buying the
new program and installing it on customers' machines.
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