Clash of the Titans

Life

1 April 2005

The world’s biggest media company is taking on the world’s biggest computer software corporation in a legal battle. 

AOL Time-Warner’s has filed a suit against Microsoft, claiming the software giant used anti-competitive means to thwart its Netscape Communications Internet browser. 

America Online says the lawsuit is based on the conduct that formed the basis for the US federal government’s antitrust case against Microsoft, resulting in a court finding that Microsoft illegally acted to harm Netscape. Acquired by AOL in 1999, Netscape saw its market share decline after Microsoft introduced its own browser, Explorer, in its Windows operating system, free of charge.

 

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Netscape is seeking an injunction that could include forcing Microsoft to sell a stripped-down operating system that does not include a browser. 

In April 2000, a federal judge ruled that Microsoft had violated antitrust laws, by using the dominance of the Windows operating system to gain market leverage over Netscape. 

In June 2001, a panel of seven appellate judges upheld eight separate complaints of antitrust violations by Microsoft. The software company settled its antitrust case with the federal government last year in exchange for a pledge to modify some business practices, but complainants are continuing to press for tougher sanctions.

Microsoft has commented that the lawsuit is more a ‘competitive move’ by AOL Time Warner than a legitimate attempt to recover damages.

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