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
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Remote Work Tops SF, NYC for Most High-Paying Job Openings
Jessica Davis, Senior Editor, Enterprise Apps,  7/20/2021
Slideshows
Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Commentary
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
Register for InformationWeek Newsletters
Video
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
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