What's going to be next from Microsoft?
From briefing.com
MICROSOFT CORP. (MSFT) 131 +1. The dispute between this software giant and the government in the browser war will most likely get nastier before a settlement is reached as Microsoft claims that the government has misinterpreted the consent decree reached in 1995.
According to Microsoft, it feels that the antitrust case brought against it by the Justice Department should be thrown out as the suit only aims to stall its Windows 95 upgrades. The software company also contends that the secrecy agreements with computer manufacturers are
beyond the reach of the government in this proceeding and should not be part of the case, even though the government charges that such agreement impede its investigation. While Microsoft is currently appealing to the district court that it is the government that is at fault and that Microsoft has not done anything to violated the 1995 consent decree, the company will have a hard time convincing Silicon Valley that its past practices are sound and proper and in keeping with the competitive environment of the software business. To be sure, Silicon Valley has its own axe to grind in this matter, but it is hard to fell sorry for a behemoth that has managed to put past competitor out of its misery through its sheer size, market presence and control of the operating system. The browser war is just the beginning of the new battle to be fought for control of the Internet platform, but it is reflective on how Microsoft goes about its business, allowing others to pioneer an area and allowing it to flourish before sweeping in and scooping up the gains, once the market has reached a certain point of maturity and profitability. Following the settlement of this case, the next test for Microsoft will be when it decides to enter the search engine arena. At this point, only Yahoo! is making any money, but in due time, MSFT will find the need to offer its own search engine and take away a business developed by others. Not that this is wrong, but its tactics and with its control of the operating system and each next version embedding an additional function of an add-on product, competitors stand little chance of succeeding, given that
the company could probably give away the operating system and still make money. This is what is at the heart of the government complaint against this software company and a suit that it likely to be repeated in the future. |
