Microsoft's On-Line Service Sparks Fear Among Independent Retailers

Microsoft's upcoming on-line service, Microsoft Network, expected to launch in August alongside the new operating system upgrade, Windows 95, has ignited concerns among independent retailers that they will be cut out of the merchandizing chain. Under the plan, up to 50 leading PC makers and software companies have agreed to sell and support their products through Microsoft Network, potentially bypassing traditional retailers. This move has prompted ASCII Group Inc., a buying group for over 1,000 independent retailers, to ask the Justice Department to block the plan, citing anti-competitive and "un-American" practices.

Key Takeaways:

• Microsoft Network is expected to launch in August alongside Windows 95, connecting vendors to customers and potentially reaching millions of users through PC sales.
• Up to 50 PC makers and software companies, including Hewlett-Packard, Dell Computer, and Borland International, have agreed to sell and support their products through Microsoft Network.
• Independent retailers, including those represented by ASCII Group Inc., fear that the plan will drive them out of business by allowing vendors to bypass traditional retailers.
• ASCII Group Inc. has filed a complaint with the Justice Department, alleging that Microsoft's plan is anti-competitive and "un-American."
• The complaint will be considered as part of the Justice Department's antitrust review of Microsoft's proposed acquisition of Intuit Inc.

Statistics:

• Up to 50 PC makers and software companies will participate in Microsoft Network.
• Over 1,000 independent retailers are represented by ASCII Group Inc.
• Microsoft Network is expected to launch in August.
• Windows 95 is expected to be bundled with millions of new PCs.

Sources:

• ASCII Group Inc. (no date)
• Microsoft Corp. (no date)
• Justice Department (no date)