Microsoft's On-Line Ambitions Spark Industry Concerns

Strategic Insights -

Three of the largest on-line services in the country, America Online, Prodigy, and CompuServ, are voicing concerns over Microsoft's plans to launch Microsoft Network in conjunction with its debut of the Windows 95 operating system. The companies fear that Microsoft's move will give it an unfair advantage in the market, with over 50 million PCs already running on Windows software. Microsoft's decision to include an automatic linkup with Microsoft Network in Win95 has sparked allegations of anti-competitive practices.

Key Takeaways:

  • Microsoft's plans to launch Microsoft Network in August, coinciding with the debut of Windows 95, have raised concerns among industry rivals.
  • The three largest on-line services, America Online, Prodigy, and CompuServ, have lodged complaints of alleged anti-competitive practices at a conference sponsored by Jupiter Communications Inc.
  • Prodigy's executive vice president, Scott Kurnit, questioned whether Microsoft will "level the playing field" or "level its competitors."
  • Microsoft's Windows 95 licensing agreement requires computer vendors to include the Microsoft Network uplink, limiting other on-line services' opportunities.
  • A top official at Compton's NewMedia Inc., Elliot Dahan, complained that Microsoft won't allow Compton's CD-based encyclopedia to be carried on Microsoft Network due to competition with Microsoft's Encarta product.
  • Russell Siegelman, Microsoft's general manager for on-line services, stated that Microsoft would "take all comers" as customers, despite the competitive concerns raised by industry rivals.

Statistics:

  • Over 50 million PCs already run on Windows software.
  • Microsoft plans to launch Microsoft Network in August, coinciding with the debut of Windows 95.
  • 3 largest on-line services in the country (America Online, Prodigy, and CompuServ) lodged complaints of alleged anti-competitive practices.
  • CompuServ, Prodigy, and others have exclusive agreements with computer vendors to offer their on-line services.
  • Prodigy has an exclusive accord with Packard Bell to offer Prodigy Kit as the only on-line software in Packard Bell machines.

Sources:

  • "Online Rivals Blast Microsoft's Plans" - Jupiter Communications Inc.
  • "Microsoft's On-line Ambitions Spark Industry Concerns" -
  • The report did not provide exact sources for the statistics.

Jupiter Communications Inc. report.

Note: This report did not specify a publication date, however, as it was in 1995, the headline is expected to be associated with this period.