Microsoft Faces Scrutiny Over Intuit Acquisition, Antitrust Concerns Mount
Washington D.C. – June 1995 – Microsoft is battling legal challenges on multiple fronts as it attempts to integrate Intuit, the maker of the popular Quicken financial software, into it’s burgeoning software empire.The Department of justice (DOJ) and competitors are questioning Microsoft’s business practices, sparking a debate over whether the company is leveraging its dominance in operating systems to stifle competition.
the core of the dispute centers on Microsoft’s October 1994 purchase of Intuit for $1.5 billion and its subsequent plan to bundle Quicken with Windows 95. To preempt potential antitrust issues, Microsoft sold its own competing financial software, Microsoft Money, to Novell. However, this move failed to appease rivals like Lotus Development Corp. and America Online, who have taken Microsoft to court.
The DOJ launched an inquiry in January 1995, examining not only the Intuit acquisition but also Microsoft’s product declaration strategies and licensing policies. While an initial antitrust agreement was reached, it was swiftly deemed illegal by Judge Stanley Sporkin in February. An appeals court, including Judge Harry Edwards, later sided with Microsoft, reversing Sporkin’s decision.
Despite the legal victories, concerns remain. Edward J. Black,president of the Computer and Communications Industry Association,stated,”It is clear that the agreement does not provide the necessary remedy for free and healthy competition.Microsoft can still create incompatibilities with the operating system it controls, so it can actually prevent other firms from competing with the products of Microsoft.”
Simultaneously occurring, established online service providers like CompuServe, America Online, and Prodigy are watching Microsoft’s moves with apprehension. Each currently boasts several million users,but they fear Microsoft could rapidly surpass them,potentially reaching 10 to 15 million users in a matter of months.
As of press time, the DOJ appears poised to block Microsoft’s purchase of Intuit entirely, with an unfavorable ruling also anticipated from a San Francisco court later this month. The case highlights the growing scrutiny of Microsoft’s expanding influence and its potential to reshape the software landscape.
