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Browser bruisers battle
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September 20, 1996: 7:17 p.m. ET
Microsoft, Netscape fight over who will be gatekeeper of the Internet
From Correspondent Steve Young
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NEW YORK (CNNfn) - The U.S. Justice Department is intensifying its investigation of Microsoft Corp. to determine whether it is trying to stifle competition in the fastest-growing part of the technology industry. Netscape Communications Corp. accuses the software giant of violating an earlier antitrust consent decree in waging its current war for Internet browser domination.
Microsoft was previously investigated for bundling its online service with its operating system. This time, the Justice Department is scrutinizing Microsoft's Internet marketing strategy.
Microsoft said the Justice Department has told it to expect an investigative demand, the civil equivalent of a subpoena.
Netscape claims Microsoft is paying off computer and Internet service companies to choose its product, Internet Explorer, over Netscape's market leading Navigator browser.
Microsoft said those charges are false. It claims Netscape is turning to the government because Microsoft is now beating Netscape technologically in the marketplace.
Tony Perkins, editor of The Red Herring magazine, said that in an election year, the Justice Department, under President Clinton, wouldn't act on Netscape's complaint without due cause. (170K WAV) or (170K AIFF)
Netscape had complained for weeks but was caught off guard when Microsoft put out word of the heightened government investigation.
The browser battle has been heating up because whoever controls browsers becomes the gatekeeper of the Internet.
Walter Winnitzki, technology analyst at Dillon Read said that Microsoft is wisely using its existing strengths in both applications and operating systems.
"They are leveraging that for success in the Internet and browser market and that just makes good business sense."
Antitrust lawyers say the case will hinge on whether Microsoft is using its control of operating systems to become the top dog in Internet browsers. 
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