Microsoft Calls Netscape’s Claims ‘Bizarre’

Microsoft Corp. on Thursday dismissed as “bizarre” and “irresponsible” charges by arch-rival Netscape Communications Corp. that Microsoft was violating antitrust laws in its aggressive drive to boost its share of the Internet browser market.

Specifically, Microsoft called false the most potentially damaging charge Netscape made in its letter to antitrust officials at the U.S. Justice Department earlier this month: that Microsoft is charging computer manufacturers more for its Windows 95 software if they sell computers bundled with Netscape’s Navigator browser than if they ship the computer with Microsoft’s Internet Explorer.

Microsoft’s response came in a statement released to the public.

As part of a 1994 consent decree, Microsoft agreed not to use licensing contracts for its dominant Windows operating systems to discriminate against competing software.

In his Aug. 12 letter, Netscape attorney Gary Reback alleged violations that included Microsoft’s offering its browser to users for free and granting online service providers preferred space on Windows 95 software if they use Internet Explorer as their preferred browser. Because Windows 95 is the operating system sold on most new computers, a preferred place on that system theoretically gives those providers an advantage in reaching potential subscribers.

Microsoft accused Netscape of engaging largely in a publicity ploy.

Reback’s “letter is a calculated attempt by Netscape to enlist the government and the media in its marketing campaigns,” Microsoft said.

The battle for share of the market for Web browsers--software that allows Internet users to view graphical “pages” on the World Wide Web--is critical because the leader gains a key competitive advantage in selling related products.

Microsoft contended that Netscape’s Navigator, with control of as much as 85% of the world market for browsers, is “one of the most successful software products of all time” and easily accessible.

Microsoft said its offers of incentives and the use of its browser for free to get Internet service providers to use its browser are both tactics first initiated by Netscape.

Microsoft also dismissed the claim that it shouldn’t be allowed to artificially restrict the number of users on the lower-end version of its Windows NT operating system. The tactic hurts Netscape, which hoped to package its software with the cheaper version. But Microsoft insists such restrictions on the use of software are standard practice.