To: Dwight E. Karlsen who wrote (21805 ) 12/2/1998 6:46:00 PM From: Keith Hankin Read Replies (1) | Respond to of 24154
if you read the news you would know that MSFT is petitioning the court to have the DOJ suit thrown out because of the fact that AOL bought out the "beleaguered" Netscape. War of the worldseconomist.com THIS week's merger of America Online and Netscape Communications-the two pioneer firms that have done most to create the Internet as a mass-market medium for consumer services-is dramatic enough in itself. That both they, and a third company involved in the deal, Sun Microsystems, are the key government witnesses in the biggest antitrust case for a generation makes it even more so. And the question that is inevitably being asked, most loudly by Microsoft, the company that the Department of Justice has accused of bullying behaviour and of abusing its near-monopoly of the PC operating system, is whether this so changes the competitive landscape that the trial should now be abandoned. Microsoft's counsel, William Neukom, claims that it proves what Microsoft has said all along: the computer industry is constantly shifting, competition is relentless and no single company can control the supply of technology. Microsoft is also eagerly drawing parallels between its case and the long antitrust war waged against IBM in the 1970s and 1980s, which lost relevance as power shifted-notably to Microsoft. But there are two problems with this argument. The first is that it has no bearing on the legality of previous anti-competitive conduct by the software giant. The second is that, rich in both symbolism and potential as the AOL/Netscape deal is, it does not instantly create a new powerhouse, let alone one that will significantly diminish Microsoft's overwhelming market power. Just about the only thing that has changed is that Netscape's drawn-out struggle to survive as an independent competitor to Microsoft is no longer an issue.