U.S. adds Microsoft charges
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September 1, 1998: 12:01 p.m. ET
Justice Department says company tried to strong-arm more competitors
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NEW YORK (CNNfn) - The Justice Department included new allegations of anticompetitive behavior against Microsoft Corp. in a legal brief released to the public Tuesday.
Responding to Microsoft's request that the government's historic antitrust case be dismissed, the Justice Department and 20 state attorneys general said the software company illegally attempted to muscle Apple Computer Inc., Intel Corp. and RealNetworks Inc. out of certain segments of the software industry.
The government compared Microsoft's actions to its alleged previous attempts to pressure Netscape Communications Corp. (NSCP) to split the Web browser market between the companies.
"Microsoft's proposal to Netscape to divide the market and restrict or eliminate competition is part of a pattern that includes similar discussions with Intel (INTC) (concerning Intel not continuing software development), Apple (AAPL) (concerning Apple agreeing to stop marketing QuickTime for use with Windows), and a small company called RealNetworks (RNWK) (concerning a RealNetworks assurance that it would get out of the streaming media platform business and not share its technology with Microsoft's competitors)," the government said in its filing.
The Justice Department also alluded to Caldera Inc.'s claim that in 1991, Microsoft engineers devised a plan to hide a bug in Microsoft Windows to disable Caldera's DR DOS operating system. At the time, DR DOS was a direct competitor with Microsoft's MS-DOS operating system.
The government referred to that charge to illustrate that Microsoft's pattern of trying to bully its competitors began several years ago.
The government urged U.S. District Court Judge Thomas Penfield Jackson not to dismiss the case, as Microsoft requested last month. The Justice Department filed its response Monday.
A Microsoft spokesman declined immediate comment, saying the company hadn't had a chance to review the Justice Department's filing.
Jackson will hear oral arguments from both sides Sept. 11; he will rule on Microsoft's motion to dismiss the case sometime thereafter. The trial is scheduled to begin Sept. 23.
Microsoft (MSFT) shares were up 3-9/16 at 99-1/2 in late-morning trading.
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