Microsoft Faces Scrutiny Over Intuit Acquisition, Antitrust Concerns Mount
Washington D.C. – June 1995 โ – โMicrosoft is battling legal challenges on multiple fronts as it attempts to integrate โขIntuit, the maker โof the popular Quicken financialโ software, into it’s burgeoning softwareโ empire.The Department of justiceโ (DOJ) and competitors are questioning Microsoft’s business practices,โฃ 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 purchaseโ of Intuit for $1.5 billionโฃ and its subsequent plan to bundle Quicken with Windows 95. โขTo preempt potential antitrust issues, Microsoft sold itsโ own competing financial โฃsoftware, โฃ 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, examiningโข not only the Intuit acquisitionโฃ but also โขMicrosoft’s product declaration strategies and licensingโ policies. While an initial antitrustโฃ agreement was reached, โit was swiftly deemed illegal by Judge Stanley โSporkin in February. An appeals court, includingโค Judge Harry Edwards, later โsided with Microsoft, reversing Sporkin’s decision.
Despite the โคlegal victories, concerns remain. Edward J. Black,president of the Computer and Communications Industry Association,stated,”It is clear that the agreement does not provide โthe necessary remedy for free and healthy competition.Microsoft can still create incompatibilities with the operatingโค system it controls,โ so it can actually prevent other firmsโฃ from competing with the products โof Microsoft.”
Simultaneously occurring, established online service providers โlike CompuServe, โขAmerica Online, andโข Prodigy are watching Microsoft’s moves with apprehension. โEach currently โฃboasts several million users,but they fear Microsoft could rapidly surpass them,potentially reaching 10 to 15 million users in a matterโ of months.
As of press time, the DOJ appears poised to block Microsoft’s purchase of โคIntuit 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.
