Ethics Newsline®

WASHINGTON
The Internet browser war heated up last week with a new lawsuit filed by AOL Time Warner Inc., which accuses Microsoft Corp. of abusing antitrust laws to crush competition from AOL’s Netscape Navigator.

AOL’s action follows a possible resolution of a colossal lawsuit filed against Microsoft by the U.S. government and several states, which attempted to fracture the company to reduce its dominance in the computer market.

AOL Time Warner, which purchased Netscape in 1999, says evidence uncovered by the government shows that Microsoft broke the law to bully and suppress rival Netscape, reported the Reuters news agency.

“Netscape’s lawsuit is a logical extension of the findings … that Microsoft thwarted competition, violated the antitrust laws, and illegally preserved its monopoly at Netscape’s expense,” AOL general counsel Randall Boe said in a statement.

Microsoft says AOL is simply blaming the industry leader for its failure to compete adequately. “AOL purchased Netscape for $10 billion. Now AOL wants to blame Microsoft for Netscape and AOL’s own mismanagement,” spokesman Jim Desler claimed.

The AOL suit, which targets Microsoft’s decision to bundle its Internet browser with its dominant Windows operating system, is asking for treble damages for lost revenues and market share. “Microsoft’s illegal actions and the harms to Netscape are ongoing,” AOL contends.

The new suit is the latest salvo in the battle for market share between Netscape’s Navigator and Microsoft’s Internet Explorer. Currently, Microsoft holds an 80 percent lock in the browser market, according to the Washington Post.