Microsoft: AOL-Netscape Merger Negates Government Case - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Microsoft: AOL-Netscape Merger Negates Government Case

WASHINGTON, D.C--The blockbuster America Online Inc. buyout of Netscape Communications Corp. cuts the legs out from under the government's antitrust action against Microsoft Corp., the software giant's attorneys said Tuesday.

Speaking outside the U.S. District Court, Microsoft spokesman Mark Murray dubbed the proposed $4.2 billion acquisition of Netscape by online giant AOL "a seismic event in this industry and in this case."

William Neukom, Microsoft vice president of legal affairs, concurred: "This deal creates a new day for consumers of operating system technology generally and of Web browsing technology, of Web porting technology, of Internet service technology and last but not least E-commerce technology."

Lead government attorney David Boies begged to differ, saying Microsoft's dominance left Netscape little choice but to be acquired. Microsoft, he noted, "forced Netscape out of the ranks of independent companies. What you see here is an exit strategy for Netscape," he said.

Boies said he did not think the deal would have a significant effect on the landmark antitrust case either in the liability or remedy stage. While it is premature to talk about remedies, Boies said he did not think any remedy should be "Netscape-centric."

Neukom reiterated his call for the government to drop the case. It should "stop wasting public resources and taxpayer dollars," Neukom said. "We saw in the '70s and into the '80s that technology moves faster than the legal system. The market does a better job protecting consumers than the government can," Neukom said.

Meanwhile, inside the courtroom, Microsoft attorney Michael Lacovara continued to question economist Frederick Warren-Boulton, a government witness, on his qualifications to talk about the software market.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2019 State of DevOps
2019 State of DevOps
DevOps is needed in today's business environment, where improved application security is essential and users demand more applications, services, and features fast. We sought to see where DevOps adoption and deployment stand, this report summarizes our survey findings. Find out what the survey revealed today.
Commentary
Will AI and Machine Learning Break Cloud Architectures?
Lisa Morgan, Freelance Writer,  6/10/2019
Slideshows
9 Steps Toward Ethical AI
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/15/2019
Commentary
Humans' Fascination with Artificial General Intelligence
Guest Commentary, Guest Commentary,  6/6/2019
Register for InformationWeek Newsletters
Video
Current Issue
A New World of IT Management in 2019
This IT Trend Report highlights how several years of developments in technology and business strategies have led to a subsequent wave of changes in the role of an IT organization, how CIOs and other IT leaders approach management, in addition to the jobs of many IT professionals up and down the org chart.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll