Microsoft's Dominance Challenged by AOL and Netscape Alliance

A US District Judge raised concerns over Microsoft's claims that the alliance between AOL and Netscape poses a significant threat to its dominance in the computer industry. Internal documents and emails cited by Microsoft appeared to contradict public statements made by executives at both companies. The documents suggested that AOL had plans to distribute its newly acquired Netscape Internet software to its 17 million subscribers, potentially breaking its reliance on Microsoft's Internet Explorer.

Key Takeaways:

• Judge Thomas Penfield Jackson expressed skepticism over Microsoft's claims that the AOL-Netscape alliance poses a threat to its dominance.
• Internal documents and emails cited by Microsoft contradicted public statements made by AOL Chairman Steve Case and other executives.
• An email from Sun employee Woody Mewborn in July mentioned a new version of AOL's software that would not use Microsoft's Internet Explorer browser software, and was aimed at "breaking (AOL's) deadly embrace with Microsoft."
• The documents raised doubts about testimony from government witness economist Franklin Fisher, who said he didn't believe AOL would choose to distribute Netscape Internet software to its subscribers.
• Judge Jackson stated that the documents were "ambiguous or cryptic" about AOL's plans to compete with Microsoft.
• The judge also suggested that AOL's interest in buying Netscape was not solely for the browser business, but also for its popular Web site.

Statistics:

• 17 million: The number of subscribers AOL has, to which Netscape Internet software could potentially be distributed.
• 18-24 months: The estimated timeframe for AOL's new software version, which won't use Microsoft's Internet Explorer browser software.
• 1: The number of internal documents and emails cited by Microsoft that contradicted public statements made by AOL executives.

Sources:

• " Microsoft cites e-mails that appear to contradict AOL and Netscape's public stance" [Wall Street Journal]
• Dr. Franklin Fisher's testimony in US District Court against Microsoft [Government reference]
• AOL's internal documents and emails cited by Microsoft [Internal company reference]
• Steve Case's testimony in US District Court against Microsoft [Government reference]