Microsoft Revises Business Deals with Internet Service Providers

As antitrust officials in the United States and Europe continue to scrutinize Microsoft's business practices, the company has agreed to revise its deals with around 40 internet service providers. The revised agreements will allow these providers to promote rival internet browsers, a move that could impact the market share of Microsoft's Internet Explorer and its main competitor, Netscape Communications Corp.

Key Takeaways:

• Microsoft has agreed to revise its business deals with around 40 internet service providers, allowing them to promote rival internet browsers.
• The revised agreements will enable internet service providers to promote a competitor's browser to consumers referred through the Windows menu, but not in a way that is greater than the promotion given to Internet Explorer.
• The move comes as antitrust officials continue to examine Microsoft's business practices, including its tactics in distributing its browsing software.
• Microsoft's chairman, Bill Gates, is scheduled to testify before the Senate Judiciary Committee on Tuesday about the company's business practices.
• The revised agreements could be helpful for Netscape Communications Corp., which has been losing market share to Microsoft in recent times.
• Around 12 internet service providers in the United States and 30 in Europe were bound by the original agreements, which forbade the advertising and promotion of browsers other than Internet Explorer.
• Microsoft's Windows operating system is installed on more than 90 percent of new personal computers, raising concerns about the company's dominance in the browser market.

Statistics:

• Microsoft has around 40 revised business deals with internet service providers.
• The revised agreements apply to around 12 internet service providers in the United States and 30 in Europe.
• More than 90 percent of new personal computers have Microsoft's Windows operating system installed.
• Microsoft's Internet Explorer is the dominant browser in the market, while Netscape Communications Corp. is its main competitor.

Sources:

• Microsoft spokesman Mark Murray
• Theodore Levitt, Netscape Communications Corp.