FTC Rejects Request for Microsoft Probe

The Federal Trade Commission on Tuesday rebuffed a request to launch an antitrust probe of Microsoft Corp. by a group of senators who said the Justice Department had gone soft in its long investigation of the software giant.

FTC Chairman Robert Pitofsky, in a letter to four lawmakers, said an FTC probe “could involve a substantial duplication of effort as well as raise serious concerns about fairness to the targets and potential witnesses.”

The decision, though largely expected by antitrust lawyers, was a setback for Netscape Communications Corp. The Mountain View, Calif.-based software company earlier challenged the Justice Department to either reinvigorate its probe of Microsoft or turn matters over to the FTC.

Washington antitrust lawyer Joe Sims said Netscape was “pretty much at the end of the rope” in urging federal action against Microsoft.

In 1994, the Justice Department negotiated a settlement over charges that Microsoft thwarted competition through its software licensing terms with computer manufacturers.

Since that time, Netscape has charged that Microsoft gives discounts on Windows 95 operating systems to manufacturers who agree to feature Microsoft’s Internet browser on a computer setup screen. Netscape has also complained that Microsoft is bundling some Internet browser and World Wide Web software with Microsoft’s operating system products.

In June, Sen. Conrad R. Burns (R-Mont.) and other lawmakers asked the FTC to investigate Microsoft. They cited concerns of computer manufacturers and other industry firms about whether Justice’s antitrust division is vigorously looking into complaints that Microsoft is violating terms of the 1994 antitrust settlement.

Shares of Microsoft, based in Redmond, Wash., rose $2.94 to close at $139.94 on Nasdaq.