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Microsoft under scrutiny
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August 22, 1996: 4:57 p.m. ET
Company alleges software giant is going to great lengths to level competitors
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NEW YORK (CNNfn) - O'Reilly & Associates, maker of a Web server software package for Windows, says it was contacted earlier this week by Justice Department officials in connection with complaints over Microsoft's business practices.
The Justice Department is investigating complaints from O'Reilly and other companies about the way Microsoft is marketing its line of Internet products.
Speaking on CNNfn's Digital Jam, O'Reilly & Associates president Tim O'Reilly said he was questioned earlier this week by Justice officials, and that he told them that Microsoft is artificially trying to keep some competitors' software from functioning properly on its desktop Windows NT environment.
As is customary, Justice officials declined to confirm or deny that any investigation of Microsoft is underway.
O'Reilly said he's concerned by the fact that Microsoft -- which by its own admission is somewhat of a late-comer to the Internet software market -- is trying to take control of the global network.
"They're doing all they can to take control (of the Internet). In the process, I think they're damaging it pretty seriously. With (our software product) WebSite, we opened up the idea that the Web belongs not in a glass house, but on the desktop," he said.
O'Reilly said Microsoft started creating a showdown when it began bundling its Web server with Windows NT, it's high-end operating system. Microsoft is reportedly telling companies they can't use competitors' software on the NT workstation platform and have sought to limit the use of standard Internet protocols with their software. (109K WAV) or (109K AIFF)
"They're saying 'you have to use our platform the way we want you to.' The vision they have is contrary to the way people want to use it. They're saying we'll tell you how to use the Internet and saying the way we want you to use it is the way that benefits our revenue the most."
Microsoft, O'Reilly charges, is explicitly taking away functionality from the NT workstation platform.
"They're suddenly saying we don't want you to use it anymore. The only reason is they want people to spend $600 more to buy an expensive operating system which is bundled with their supposedly free browser."
As for his knowledge of the Justice inquiry, O'Reilly said all he can confirm is they are taking data from representatives of other companies that have raised concerns.
He said he wrote a memo to Justice explaining his concerns, which they should have received early this week.
What Microsoft should worry just as much -- or more -- about than an investigation, O'Reilly said, is reaction from the public.
"I don't really have a sense of what Justice is doing. I do know there's a tremendous public outcry. While Netscape has been pushing the legal angle, I have been pushing the (public relations) angle.
"When people understand what Microsoft is up to, they're outraged. They need to respond to public, as well as legal, pressure on this," O'Reilly said.
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