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User: Win98 not the problem, Microsoft is

Microsoft holds off on shipping new OS.

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Today's breaking news
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User reaction today is mixed about the federal government's stand-off with Microsoft Corp.

The U.S Department of Justice and Microsoft agreed to disagree for the time being, while trying to settle their dispute over Windows 98.

"The DoJ should back off. Novell has a huge installed base, Unix still has the high-end market . . . the others should just try to make their products better," said Dwight Gibbs, chief technical fool at online financial adviser the Motley Fool.

"Bill Gates once said 'we put software in boxes and then put those boxes on the shelf. How is that predatory pricing?' This is what Microsoft excels at, being packagers of technology. They're not inventors and they're not designers," said Nick Arnett, independent analyst and former Verity, Inc. product manager. "Standard Oil was a monopoly. You look at the real robber barons of industry, and Microsoft is a pussycat in comparison."

Others disagree. "If Microsoft is doing something monopolistic in the shipment of Win98, then they should be stopped," said John McFarlane, CEO of Software.com, Inc. in Santa Barbara, Calif.

Others believe more drastic action is warranted. "Everyone seems all concerned about the browser. They should take a step back and look at one company controlling the operating system and the applications. That's the bigger issue," said David Brandon, director of new product services at SBC Communications, Inc. "The DoJ should say to Microsoft that you have to spin off applications section from the operating system - like IBM in the '70s. It may happen to Microsoft and I wouldn't say that's a bad thing."

This week was supposed to be a time of celebration for Microsoft, which was ready to ship Windows 98 to PC makers. But instead, tensions with the government have reached a boiling point, forcing Microsoft to delay the shipment until next week. As the state and federal attorneys general were about to close in, a suddenly cooperative Microsoft began to negotiate. Due to the discussions, Microsoft decided to not deliver Windows 98 as planned, and to put its full attention on the negotiations.

The Feds and various state governments are considering:

  • Forcing Microsoft to give PC makers broader browser options by delivering a version of Windows 98 without the browser.

  • Forcing Microsoft to craft less restrictive contracts with PC makers concerning browser installation and who controls the content of the opening screen of a PC.

  • Forcing Microsoft to eliminate agreements on Internet firms such as ISPs that favor Microsoft software over that of its rivals.


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