Group Objects to Microsoft’s On-Line Plans : Technology: Dealers representatives will meet today with Justice Department officials.

Microsoft Corp.’s plans to launch an on-line service, which have raised fears among its rivals, were challenged Monday by a group of computer dealers concerned that their sales will be hurt by the network.

Representatives of ASCII Group Inc., a buying group of 1,075 computer dealers nationwide, will meet with Justice Department officials today to discuss their displeasure with the planned Microsoft Network, said Alan Weinberger, executive director of the group.

ASCII is the latest of several industry groups and companies to express concern about the potentially huge competitive advantage Microsoft will have when it launches the network as part of its Windows 95 computer operating system expected to be available by August.

Weinberger said in an interview that the independent dealers of ASCII, who together account for about $5 billion in retail sales, are upset that Microsoft intends to make the new network a vehicle for direct sales of computers and software.

Microsoft last week released a list of more than 50 software and hardware companies that plan to provide product information over the network.

At least two software companies said they plan to sell products through the network, and Microsoft has indicated it expects to generate royalties from such on-line sales.

While existing on-line services such as America Online, CompuServe and Prodigy offer the same ability for companies to bypass dealers and go directly to customers, Weinberger said the Microsoft case is different because of the software giant’s dominance in operating systems.

“If you’re in a monopoly position in the operating system, you can’t just suck everything in with it,” Weinberger said. “It’s unfair and un-American.”

He said computer dealers are particularly irritated because they will be expected to sell the Windows 95 upgrade, which then could undermine future sales of hardware and software.

A spokesman for Redmond, Wash.-based Microsoft said the dealers’ concerns are premature.