Operating system developer Be is the latest software company to
file an antitrust suit against software giant Microsoft.
Be, alleged that, among other claims: "Microsoft harmed Be through
a series of illegal exclusionary and anticompetitive acts designed
to maintain its monopoly in the Intel-compatible PC operating
system market".
Be argued that Microsoft "created exclusive dealing arrangements
with PC OEMs prohibiting the sale of PCs with multiple
pre-installed operating systems".
A US District Court ruled in June 2000 that Microsoft had illegally
maintained a monopoly in the market for desktop operating systems,
a ruling that was later upheld by a US Court of Appeals.
Be emerged as a maker of operating system software in 1997,
pitching its product as an alternative to Microsoft Windows. The
company tried to get its software shipped on Intel-based computers
alongside Windows in a dual boot configuration. However, the
company claims, its efforts were unsuccessful due to the
anticompetitive nature of Microsoft's deals with its industry
partners.
"Computer manufacturers have always been able to ship computers
with multiple operating systems," countered Microsoft legal
spokesman Jim Desler. "Computer makers have chosen Windows over
competing operating systems because Windows is the best
product."
Be later shifted its focus towards providing software for Internet
appliances, a market that included Microsoft's Windows CE operating
system. The company has since been mostly acquired by Palm,
Microsoft's top competitor in the market for handheld
computers.
Be's antitrust action follows a similar lawsuit filed in January by
Internet browser maker Netscape, which is now owned by AOL Time
Warner. Netscape argued in its lawsuit that the way Microsoft
distributed Internet Explorer was harmful to Netscape's Navigator
Web browser business.
Be is seeking a jury trial and is asking for compensatory and
punitive damages. It is also asking that Microsoft "make full
restitution for its violations".
Netscape may have a better case against Microsoft than Be, largely
because its browser was at the centre of the DOJ's antitrust
complaint against Microsoft, said Mark Schechter, a former official
in the DOJ's antitrust division.
"Netscape was the specific subject of the DOJ case. Be wasn't,"
Schechter said.
While Be's case might not have much impact on the government cases,
it offers a glimpse at the type of legal actions that may continue
to dog Microsoft after the government case is over, according to
Schechter.
"In some ways, no matter how the settlement turns out, private
plaintiffs will have their own courses of action," he said.