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States may block Win 98
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April 24, 1998: 6:26 p.m. ET
A dozen attorneys general reportedly considering a preliminary injunction
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NEW YORK (CNNfn) - Officials from a dozen states that have been preparing antitrust actions against Microsoft Corp. reportedly are planning to block the scheduled June 25 shipment of Windows 98.
A source from one of the states told CNNfn the states plan to file some kind of joint action, possibly a request for a preliminary injunction, as soon as April 30. Microsoft is scheduled to ship Windows 98, the next version of its operating system, to PC makers next month.
The Justice Department has also been looking into possible action against Windows 98 as part of its long-running antitrust suit against Microsoft.
Earlier this month, attorneys general from Texas, Ohio and Wisconsin confirmed they are mounting independent probes of the software behemoth.
The states don't want Windows 98 shipped until they can hold hearings to probe their concerns that Microsoft's business practices are anticompetitive.
The action would block the master code sent to PC makers to put on their computers. It would also block the shipment of Windows 98 in shrink-wrapped packages to stores for consumers who want to install the upgrade themselves.
"They want to disrupt the entire industry," said Microsoft spokesman Mark Murray. "Hundreds of computer makers gearing up, thousands of Windows 98 resellers."
Murray said if the states are successful it would "derail hundreds of millions of dollars of business. Not by Microsoft, but companies unrelated to Microsoft."
News of the states' possible action was first reported Friday by PC Week Online.
Microsoft shares closed Friday at 92, off 2-1/2.
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