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Apple investment questioned
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August 20, 1997: 2:36 p.m. ET
Justice Dept. looking into Microsoft's $150 million stake in computer maker
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NEW YORK (CNNfn) - The U.S. Justice Department is examining Microsoft Corp.'s $150 million investment in Apple Computer Inc. to see if it is anti-competitive.
"We're looking at that proposed transaction [and] the competitive effects of the transaction," said Justice Department spokeswoman Gina Talamona.
On August 6, Apple announced that Microsoft had bought a minority, non-voting stake in the computer maker for $150 million. Apple also said Microsoft's Internet Explorer browser would become the default browser in its Macintosh Computers.
Microsoft said there is nothing unusual in the partnership, noting that Microsoft has been making software for Apple computers for more than 20 years.
"This agreement with Apple is a continuance of what we have done with Apple since before the introduction of the Macintosh," said Microsoft spokesman Greg Shaw.
"We took a minority, non-voting investment in Apple because they asked for it and because they're in a particularly challenging time in their history."
The technology industry is a key area of scrutiny for the Justice Department and, while the amount of money involved in the stock purchase may not be large when compared to some recent stock deals, the players are stars of the industry.
Microsoft and the Justice Department have dealt with each other in the past. In 1994, Microsoft struck a deal with the agency, saying it would stop giving discounts designed to encourage computer makers to pre-install its Windows operating system.
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