Mighty Microsoft and its Monopoly


Many Internet users fear that Microsoft is slowly taking over the Internet through monopolistic activity. Not only does this deviate from the pre-established Internet ideals, but Microsoft is also being investigated by the United States Justice Department for such activities. There are numerous accounts of incidents that many declare to be purely for a selfish, monopolistic purpose. This section will attempt to investigate all of these allegations and will attempt to present a clear picture that Microsoft is trying to create a monopoly. Without intervention by the government or by Internet users, Microsoft may just succeed in creating this envisioned monopoly.

Control Via Windows and Internet Explorer

Microsoft’s web browser, Internet Explorer (IE), is what most claim Microsoft is using to take over the Internet market. In order for this strategy to be effective, IE needs to be the most used web browser. Microsoft has done many things to promote its product, IE. As a result, the browser market which has been primarily controlled by Netscape has turned into a confrontation in which Netscape has lost its firm hold on the market while Microsoft’s grip has been slowly strengthening. Microsoft will soon take over the browser market if their progress is not halted.

Microsoft’s dominance in the operating system market is one strategy being used to hinder consumer choice (over 90% of computer systems have Windows installed on them.) As a condition of licensing Windows 95, Microsoft is requiring PC manufacturers to also license and distribute IE4. Because no one wants to buy a computer without the premier operating system not already installed, almost all new computers are going to have Internet Explorer pre-installed on them. Netscape has also charged that Microsoft made PC manufacturers pay an extra $3 for each personal computer using Windows 95 if they wanted both Microsoft’s IE and Netscape Navigator included. Furthermore, Microsoft is also charged with deducting $5 from the Windows licensing fee for every Netscape Navigator browser that is dropped and replaced with IE. Having IE pre-installed on computers creates the perception for many first time users that there is no other choice. And once these computer users do realize that a choice exists they either do not want to deal with the hassle of installing a new browser or have become both familiar and comfortable with IE, thus they are unwilling to try a new browser. With the tremendous recent growth of online users, the uneducated computer user comprises a greater percentage of Internet users. These new users will have a heavy influence on the future of the Internet, and Microsoft is taking advantage of this opportunity by creating a false feeling of superior features and that no other choices exist, thereby dramatically strengthening their hold on the browser market.

Another connection between Windows 95 and IE 4 is that the second release (OSR2) of Windows 95 will automatically install IE4 when Windows 95 is installed. The first service release (OSR1) did not have this tie in between operating system and browser, but in order to upgrade to OSR2 which contains many enhanced features one must install IE4. Thus, it is becoming increasingly difficult to buy or install a new operating system without the inclusion of IE4.

With Windows 98 expected to be released soon, there is going to be an even closer integration between the operating system and browser. The main feature of the new OS is that there will be full integration between the two where the exclusion of one will result in the other being dysfunctional. But if Microsoft is required to offer a version that does not include an integration between the OS and IE4 there will still remain features of Windows 98 that will not work without IE4 installed. One such feature is that there will be an automatic update feature that when activated will search Microsoft’s web site for any updates to any Microsoft products that one has installed on their computer. However, this feature will only work with IE4. Another feature that will only work with IE4 is that shortcuts made to the Internet that are on one’s desktop or in other programs will only work with IE4. Microsoft claims that they are only following what their customers want, but by doing so they are eliminating perhaps the most important feature, that of choice.

Internet Service Providers

The installation of IE4 is also becoming unavoidable in the world of Internet service providers (ISPs). Seven of the top twelve ISPs that serve US consumers offer Microsoft’s IE as the default browser or bundle it with their sign-up packages. These ISPs include America Online, MCI, CompuServe, Sprint, PSINet, Prodigy Internet, and AT&T. Prodigy Internet, for example, gives the option of using Netscape Navigator but in order to successfully create a user account IE4 must be installed and initially used. After the account has been successfully created, one can then change browsers. But with the hassle this creates, the percentage of non-IE4 users will more than likely be small, especially with the numerous new Internet users. Microsoft has also allegedly offered $400,000 to ISPs if they promise not to offer Netscape or other Internet software.

Internet Explorer Restrictions

Microsoft is furthermore pushing IE4 onto consumers by creating a picture that IE4 is far superior to all other browsers and if one wants to make full use of the Internet, IE4 is a necessary requirement. One unique feature of IE4 that Microsoft has been heavily pushing is Active-X technology, and full Active-X functional ability is only available via IE4. Through their push, Microsoft has signed with over 250 companies to take advantage of Active Channels. Some of these companies are New York Times, Disney Online, Warner Bros., ESPN Sportszone, and MTV. As a result of this, some Internet sites are no longer accessible through a non-IE browser. Warner Bros. is one such site that is only accessible via IE4. Another perceived threat to Microsoft is Sun because of their Java language. Sun has released Java as a universal, open language (“write-once, run-anywhere”) but Microsoft has changed the language such that it only works on Windows. As a result, Java has been made into an incompatible and platform dependent language. “Microsoft is attempting to neutralise Java through the same “embrace and extend” strategy which it is using to corrupt the open standards which have been traditionally used for Internet publishing.” (Ralph Nader) The end result is that overall interoperability is made more difficult. By creating these restrictions, many may soon be forced to turn to IE4 in order to gain full access to the Internet.

Politics

Many also question Microsoft’s recent activity in politics. Microsoft has been very active in the political scene attempting to fight off allegations that they are creating a monopoly. In 1997 Microsoft spent $1.9 million in lobbying costs, $1.2 million of which was spent during the second half of the year, coinciding with the monopolistic allegations that were brought forth by the U.S. Justice Department. Some of their recently hired prominent lobbyists include four former members of Congress and 32 former congressional staffers or government officials. Microsoft is also busy contributing to election campaigns. They have already contributed more than $180,000 which puts it on track to easily exceed their 1996 election contributions. Microsoft’s favorite congressman has been U.S. Republican Rick White whom has received $16,350 which is far more than what Microsoft has given to other members of Congress. Bill Gates has said in the past that he does not get involved in politics, but here it is clearly evident that he does.


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