Microsoft and Apple Engage in Heated Exchange Over Anti-Trust Settlement and Market Tactics

Strategic Insights -

Tensions between Microsoft and Apple have escalated with the filing of letters accusing each other of overbearing market tactics and dishonesty. Apple General Counsel Edward Stead charged Microsoft officials, including CEO Bill Gates, of trying to bully Apple by threatening to withhold a crucial advance beta copy of Microsoft's Windows 95 operating system. Microsoft fired back at Apple, accusing it of a "lack of candor and honesty" in its dealings with Microsoft.

Key Takeaways:

  • Apple alleges that Microsoft delayed providing the beta copy of Windows 95 for almost one year, which slowed down Apple's work on cross-platform machines.
  • Microsoft says it only agreed to provide the beta version of Windows 95 to Apple after receiving an unusual late-night telephone call from US Assistant Attorney General Anne Bingaman.
  • Apple claims Microsoft's actions demonstrate that the software giant cannot be trusted, raising questions about Bingaman's role in the affair.
  • Microsoft Chairman Bill Gates denies any wrongdoing, arguing that the company has treated Apple more generously on beta copies than Apple has treated Microsoft.
  • Apple's lawsuit against San Francisco Canyon Co. has expanded to include Microsoft and Intel Corp.
  • Microsoft says networking software vendors Banyan Systems, Digital Equipment Corp., and FTP Software are making available beta test copies of their network-client software designed to work with Windows 95.

Statistics:

  • August: Microsoft's Windows 95 operating system is set to be released.
  • February 13: Apple General Counsel Edward Stead sends a letter to US District Judge Stanley Sporkin accusing Microsoft of overbearing market tactics.
  • February 9: Apple expands its lawsuit against San Francisco Canyon Co. to include Microsoft and Intel Corp.
  • April 24: Oral arguments before the US District Court of Appeals for the District of Columbia are set to take place.
  • March 16: A status hearing will be held on the anti-trust settlement matter in front of Judge Sporkin.

Sources:

  • Apple General Counsel Edward Stead, letter to US District Judge Stanley Sporkin, February 13
  • Microsoft Chairman Bill Gates, letter to Apple Chairman Michael Spindler
  • Software Industry Report, "Judge Sporkin Denies Justice Department Motion to Approve Anti-Trust Settlement," February 20
  • Software Industry Report, "Banyan, DEC, FTP Software Make Betas Available on Win95 Compatible Software," February 27