Fri Mar 21, 2008 5:47PM EDT
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Hard to believe, but the antitrust case against Microsoft over the bundling of software into the Windows operating system has been rumbling on for nearly a decade now. But those travails are far from over. In fact, the U.S. Supreme Court has now approved a new antitrust case against Microsoft to move forward, this time concerning the way it leveraged its power to muscle competitors to its Microsoft Office apps out of the market in the 1990s.
It's practically ancient history now, but if you've been around computers since Windows 95 came around, you might remember that MS Word and Excel weren't always the standards they are now. Novell made two of the big powerhouses of the early '90s: WordPerfect (which fought bravely against Word for many years) and Quattro Pro (a spreadsheet app which all but vanished before the turn of the century). Both applications, believe it or not, are still on the market.
When Microsoft released its watershed Windows 95, it did something incredibly vain and illegal, at least according to Novell: It withheld some of the specifications needed to make third-party software apps work with the new OS. Win95 was an instant hit, and if you wanted to type a letter or balance your budget, you had little alternative at the time than to use MS Office. The results were swift and catastrophic for the competition: Users switched to Office in droves, quickly building a market share for Microsoft that hit 95 percent within two years.
Wacko conspiracy and sour grapes? Not really, as there's a smoking gun [PDF] in this case, a 1994 email from Bill Gates that outlines just such a plan to withhold the technical information from competitors, noting that their products were superior to Microsoft's and that, well, cheating was the only way that Microsoft could compete.
Novell first filed suit in 2004 after unloading WordPerfect and losing half a billion dollars on the deal. Four years later, a trial seems to be rolling forward, although there seems to be no way that the true damages Microsoft caused to Novell and others could possibly be repaid or even calculated, no matter what the outcome. Stay tuned for more as the story develops.
Join in the discussion. Here you'll see the comments in the order they were posted.
Can't beat him, join him.
Nothing will come of it. Bill Gates is smart thought, excellent business strategy! Too bad it's attracting these lawsuits
If microsoft wasn't so big no one would care. I think it's sad that we are such a jealous society that we always try to pull the large and successful down.
I agree with Chellofs.....Gates tactics is no different from Job's but we love apple...get outta here its all about money....until you can code your own os and make it suitable for everyone and every product fork over the cash
Anyone who was forced to learn Excel back then--and Lotus was so much better to work with--has been waiting for this case for a long time. Because we've (we meaning clerical and mid-level accounting employees who had no input to what sort of programs IT departments would purchase) been saying for years that Office was the greatest money printing machine in the world even though Excel was really lacking compared to Lotus and Quattro-pro. Granted, Word had evolved into a better program than WordPerfect was, but Excel was a tough pill to swallow. Why were we forced to switch? Because Word and Excel were sold as packages with the new (was it 486 or Pentium I?) computers, while Lotus & WordPerfect would be more costly, so many companies would not allow users to purchase the "extra" programs. They would, however, be forced to spend a good deal of money sending employees to Excel and Word (and Access, too, which replaced the dBase program for a lot of users) training courses. The total cost to businesses was far greater in lost productivity than the dollars discussed in the lawsuit. And some 12-odd years later, I still can't write the kinds of slick macro commands I could in Lotus. With Lotus, if you knew the keyboard commands, you could write a macro. With Excel, you have to use Visual Basic, and you still can't do the same things you could in Lotus...and it gets worse: Just when I thought I was an expert Excel user (finally), Microsoft threw out another curve: Office 2007! The same commands in Excel 2007 do the same functions as they do in Excel 97, but good luck trying to find the familiar commands in its new menus (menu bubbles rather than the menu bars). Sure, its got a lot of slick features, such as the ability to sort by cell color or text color, but why move all the menus around? (Answer: to make people have to go to MORE classes on how to use the New & Improved Excel) So do the math. Microsoft's actions in the early 1990's had far greater cost to businesses than most people realize. And I curse Bill Gates every time I use the New and Improved Excel.
I am not surprised. While I do support free markets, I do not support unethical markets. In fact, I support corporations which make good products.
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6 Posted by austinkocherhans on Thu Sep 3, 2009 2:59PM EDT Report Abuse
Bill Gates made his fortune at the expense of others and now has found religion. What a nice guy.Unfortunately the stairway to heaven passes all those dead bodies he killed to make his fortune. No jury in this country will side with him. MSFT would be wise to settle.