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Microsoft seeks accord with U.S. and averts suit: a delay for Windows 98: software giant goes to brink and then decides to offer some new concessions

Article Abstract:

Microsoft said it would delay initial shipments of its Windows 98 OS to computer manufacturers until May 18, 1998, to continue settlement discussions with the federal and state governments. The announcement came less than an hour before the Justice Department and attorneys general from 20 states had prepared to file a joint antitrust action against the company. Other Microsoft marketing concessions include possibly amending or dropping tactics that concern prosecutors, such as forcing computer vendors to feature Microsoft-only products or display Microsoft programs a certain way, according to officials and executives familiar with the negotiations. Microsoft, which originally planned to release Windows 98 on May 15, said the new product still is scheduled to reach stores on Jun 25, 1998. The states's proposed lawsuit would have reflected the Justice Department suit in attacking various Microsoft tactics including bundling, as well as packaging WebTV for Windows and Outlook Express, several officials said.

Author: Brinkley, Joel
Publisher: The New York Times Company
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
Company legal issue, Operating system, Operating systems, Litigation, Lawsuit/litigation, Microsoft Windows 98 (Operating system)

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Injunction looms as showdown for Microsoft

Article Abstract:

The Justice Department's antitrust case against Microsoft will depend heavily on its request for a preliminary injunction from US District Court Judge Thomas Penfield Jackson. A weak preliminary injunction would reward Microsoft because the software giant could wait several more years before a full trial takes place, according to antitrust lawyer Garret Rasmussen. Such a move could involve preventing Microsoft from requiring PC makers to bundle its Internet software as a prerequisite for licensing its OS. Microsoft could avoid the problem by offering its OS with the Internet software, so long as they do not exceed the price of a version with the software. A worst-case scenario for Microsoft would force it to add Netscape's Internet software. Jackson, before issuing any injunction, must must consider whether the government can prevail in a full trail. He then must balance the potential harm to both consumers and to Microsoft.

Author: Jacobs, Margaret A.
Publisher: Dow Jones & Company, Inc.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
Laws, regulations and rules, United States. Department of Justice, Internet access software, Market domination, Market share, Government Regulation

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Subjects list: Computer software industry, Software industry, Cases, Microsoft Corp., Operating systems (Software), Antitrust law, MSFT, Antitrust Issue
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