Let's all hope that Novell can capitalize on this development also:
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OEMs: Microsoft Behaved Badly
By Charlotte Dunlap & Mary Jo Foley
Redmond, Wash.
7:45 a.m. EST Fri., Sept. 20, 1996
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Testimony by original equipment manufacturers (OEMs) may be at the crux of any actions taken by the Department of Justice into alleged unfair business practices by MicrosoftCorp.
Various OEMs offered to CRN their reaction to the U.S. Department of Justice's plan to issue Microsoft a CID (civil investigative demand) for information related to its browser technology.
"Our legal people are surprised how vehemently Microsoft is denying the [Netscape] charges that are true. They think that the fact that it looks like Clinton is staying in the White House is making them so
cockey," said one OEM close to Microsoft requesting anonymity.
"What they [DOJ] will mostly go after them on is on Microsoft's offering ISPs money to kick Netscape browsers off," said another OEM official, who also requested anonymity.
"(Microsoft) wanted us to help them identify who among our customers is using Netscape and have us help them to 'encourage' them to switch. Microsoft offered us points on our licensing agreements for doing this. We have deals going with Netscape, too, so we said no," he added.
Some observers are expecting the DOJ to investigate not only Microsoft's business practices surrounding Internet Explorer, but its Windows NT server licensing also.
Netscape Communications Corp. attorney Gary Reback apparently tipped off the DOJ's investigation, earlier complaining to the government body that Microsoft was forcing customers to use its Windows NT
Server versus its lower priced Windows NT Workstation as a Web server.
Netscape's lawyers admitted they did not know exactly what the DOJ will investigate. However, at this point, Netscape has no plans to pursue civil legal action against Microsoft.
"A lot of these matters violate existing consent decrees, and given their (Microsoft) conduct, this is classically the thing they 'll (DOJ) handle," said Susan Creighton, another Netscape attorney and
partner at Wilson, Sonsini, Goodrich & Rosati, Palo Alto, Calif.
"Serious allegations are such that any reasonable government agency would feel like they needed to pursue it," she added.
Analysts agreed. "Netscape is not going to focus on it as it relates to them," said Daniel Rimer, Internet analyst, Hambrecht & Quist, San Francisco, of the investigation into its browser conduct. "They feel
they're present in the intranet space and this shouldn't be the battle they're involved in," he added.
"Microsoft is not only present in the Internet space, but making it difficult for competitors," he added.
Abhishek Gami, vice president for Nesbitt Burns Securities Inc., a Chicago-based investment banking firm also did not expect Netscape to pursue further legal action at this time. "I have a hard time seeing
one company take on the brunt of the battle."
He said expects the OEMs to work together with Netscape to fight Microsoft.
"Microsoft was bullying these OEMs around. It's one way or another--we'll give you the product for free, but you have to do things our way," he added.
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Joe ..(I guess my manifesto about Microsoft on my web page wasn't so far out after all <g>).
monmouth.com |
