NT antitrust's next battleground
Microsoft's OS that runs corporate workstations and servers is likely to become the next high-profile battleground, regulators and outside observers say.
Microsoft has already announced plans to succeed Windows 98 with Windows NT-based technology, now a souped-up operating system that runs corporate workstations and servers. Antitrust regulators, already criticized by some for going after Windows 95 too late in the game, are determined not to make the same mistake again.
"Obviously, Java and NT are the next issues and the issues over which I believe we can have a dramatic impact because we still have time," said one state official who asked not to be named. "We won't run into the problems of eminent distribution of the product" with Windows NT, which runs a fraction of workstation and server systems in operation today, but represents the fastest growing portion of Microsoft's business.
The official added that investigators now are determining whether Microsoft's migration to NT constitutes an illegal extension of Microsoft's alleged monopoly power in the market for desktop operating systems. Among other things, they are looking at the integration of existing Microsoft products, such as those found in Microsoft BackOffice, with Windows NT 5.0, the update rumored to be released early next year.
Investigators may also look at other practices associated with NT, such as a requirement that applications developers design programs that run on both Windows 95 and Windows NT to display Microsoft's Windows Compatible logo. True or not, such reports are sure to fuel allegations that Microsoft is leveraging its dominance in Windows 95 and Windows 98 to promote NT.
In addition to building a case charging illegal maintenance or illegal extension of an existing monopoly, regulators may try to make use of a federal judge's recent decision in a separate case that Intel held a monopoly in the market for Intel-based chips. (See related story)
Rich Gray, an antitrust attorney with Bergeson, Eliopoulos, Grady & Gray, said prosecutors taking on Windows NT would have to show either that Microsoft used the dominance of Windows 95 and Windows 98 to prop up NT, or that, based on the Intel decision, NT is a market in and of itself. If they were able to accomplish either, Windows NT could replace Windows 98 as the center of future antitrust battles.
Rick Rule, a Microsoft consultant who headed the Justice Department under the decidedly free-market Reagan administration, discounted the chances of a case successfully being brought against NT.
He explained that, contrary to assertions by Microsoft competitors and others, including Sen. Orrin Hatch (R-Utah), no one has ever proven that Microsoft has a monopoly in any market.
And in the meantime, regulators will want to think long and hard about the issue before they act.