Back down: However heated the rhetoric, Microsoft’s fighting words have some legal justification. Is bundling illegal? “The courts have generally ruled that it is not,” says Steven Newborn, a former antitrust litigator at the Federal Trade Commission. Microsoft might be different. But in order to stop the company, Justice would have to show convincingly that Microsoft will drive most other online services out of business. William Baxter. an ex-antitrust chief at Justice, figures the odds are 2 to 1 that the Feds will fold.
Settler Justice is widely perceived to have been “soft” on Microsoft, despite having scotched its merger with Intuit, the leader in personal-finance software. Though the odds are against them, the Feds might be tempted to use the threat of a lawsuit to scare Microsoft into a settlement. The goal: get equal access for rival online services via Windows 95.
Sue: If Gates fights, Justice may seek an injunction forcing Microsoft to “de-bundle” its network. That would delay the whole Windows 95 launch, damaging not only Microsoft but also the myriad suppliers and manufacturers who have invested heavily in related software. It would hurt consumers, too, who could otherwise expect more online choices at lower prices. Justice offers no clues to its next moves, except to say its investigation is continuing. Gates, perhaps, isn’t the only one spoiling for a fight.
