Janet Reno Statement.
Re: DOJ v. Microsoft, Case No. 98-CV-1232, 1233.
May 18, 1998.
Source: DOJ, Office of Public Affairs.

PREPARED REMARKS OF ATTORNEY GENERAL JANET RENO
ANTITRUST SUIT AGAINST MICROSOFT

The high technology revolution of the past two decades is one of America's greatest success stories. The revolutionaries were inventors, people with bold ideas. But they possessed something else: a fair chance to develop those ideas into products that could compete in the marketplace. And for more than a century, strong antitrust laws have protected ordinary Americans by assuring real competition.

Today, we are taking another step to keep our marketplace competitive. The Justice Department has charged Microsoft with engaging in anticompetitive and exclusionary practices designed to maintain its monopoly in personal computer operating systems, and attempting to extend that monopoly to internet browser software.

The Department alleges in its complaint that Microsoft has engaged in a series of anticompetitive practices, including:

• Misusing its Windows operating system Monopoly by requiring computer manufacturers, as a condition of getting Windows, to adopt a uniform "boot up" or "first screen" sequence that promotes Microsoft products;
• Attempting to persuade Netscape, an internet browser software competitor, not to compete with Microsoft, and instead divide up the browser market;
• Engaging in exclusionary contracts with providers of internet and online services, and internet content providers; and
• Forcing computer manufacturers to purchase and install Microsoft's internet browser as a condition of getting its Windows operating system. In short, Microsoft used its monopoly power to develop a chokehold on the browser software needed to access the Internet.

Microsoft's actions have stifled competition in the operating system and browser markets. But most importantly, it has restricted the choices available for consumers in America and around the world.

Today's action is intended to ensure that consumers and computer makers have the right to choose which software they want installed on their personal computers, and not have that software chosen for them. It is also designed to preserve competition and promote innovation in the computer software industry.

The Department also filed today a motion seeking a preliminary injunction. The injunction seeks to:

• End Microsoft's practice of forcing Windows 98 purchasers to take Microsoft's internet browser as well, so that consumers can have a real choice. If Microsoft insists on including its browser on Windows 98, it should also include Netscape's browser. Computer manufacturers would have the option of deleting either browser. If Microsoft does not want to include Netscape, it must unbundle its own browser and let it compete in the free market, on its merits;
• Require Microsoft to give computer manufacturers the right to install their own first screen at the conclusion of the initial boot up sequence, a first screen on which they can promote any products they wish;
• Require Microsoft to give computer manufacturers additional options for installing browser software on new computers; and
• Forbid Microsoft from enforcing contractual provisions that require providers of internet and online services and internet content providers to limit their distribution and promotion of competing browsers.

The Internet is already revolutionizing communication, commerce, and the flow of information around the world. No firm should be permitted to use its monopoly power to keep out competitors or spurn innovation.

Without antitrust laws, the innovators of today could be shut out of the marketplace. Competition will dry up, along with the incentive to innovate. Microsoft has an excellent record of innovation. But we want to make sure that the field is open to the next Microsoft, the next great innovator who can help improve our lives and our economy--if they are given the opportunity.

I am pleased to be joined today by Joel Klein, Assistant Attorney General in charge of the Department's Antitrust Division, Iowa State Attorney General Tom Miller, the chair of the Antitrust Committee of the National Association of Attorneys General, New York Attorney General Dennis Vacco, and Connecticut Attorney General Richard Blumenthal, who are here representing the 20 States and the District of Columbia who have also filed suit against Microsoft. The Justice Department and the States have worked very hard to coordinate their investigations of this matter, and American consumers have been well served as a result.