Will regulators and rivals hinder Microsoft

Article Abstract:

The US Justice Department and rival software companies, claiming anti-competitive business practices, could place a heavy regulatory burden on Microsoft, but the company could diffuse the situation on its own. The threats to Microsoft probably will not affect its current dominance in operating systems and applications, but could serious hurt the company's plans to dominate new markets such as electronic banking, interactive television and online computer services. Microsoft's proposed acquisition of Intuit, the leader in personal finance software, is the linchpin in its attempt to dominate electronic banking. The Justice Department, which is reviewing the deal, could restrict or bar it. The Justice Department has a weak case because it is proposing to regulate markets that do not yet exist. The software company's Microsoft Network, which will be bundled with Windows 95, has created a hail of complaints from online networks because it will quickly dwarf them in size and reach.

Microsoft Corp., Antitrust law, MSFT, Industry legal issue, Antitrust Issue

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2000 bug: group seeks damages cap

Article Abstract:

California could limit awards from Year 2000 lawsuits, if a legislative measure currently under development is passed. Assemblyman Brooks Firestone, R-Los Olivos, is expected to introduce the measure in Jan 1998. Awards would be restricted to bodily injury and 'reasonably incurred' costs regarding relevant computers and software. Current state law allows suit to recover 'consequential damages' for property value lost as a result of a Year 2000 malfunction. The Association for California Tort Reform, the measure's sponsor, says it would aim to curb litigation excess. An opponent is the Consumer Attorneys of California, which claims it would weaken businesses' ability to recover actual damages. The bill surely will receive support from the computer industry, although many companies may conduct quieter lobbying efforts to prevent direct association with the Year 2000 problem.

Year 2000 transition (Computers), California, Year 2000 transition

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Restrictions are relaxed on encryption exports

Article Abstract:

The Clinton administration relaxes restrictions on the export of data encryption technology. Such technology, which uses mathematical formulas to encode and decode data, is needed to encourage the growth of Internet-based electronic commerce. However, law enforcement and national security officials worry that terrorists and criminals might use the technology to avoid surveillance. The government's policy changes do not entirely eliminate controls. For example, 'key recovery' is encouraged. Key recovery requires companies to keep copies of software 'keys,' which means government officials with court orders would still have a way to access the content of a particular message.

Encryption, Internet security, Data encryption, Data security, Export controls, Data security issue, Government export policy and export regulation

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