The Bundled Browser Debate, Continued
In pretrial depositions, several industry execs explain why they think consumers should have a choice
What do customers want when it comes to Internet browsing capability? On Dec. 16, the Justice Dept. released a handful of depositions from computer manufacturers and from operating-system makers that compete with Microsoft. For the most part, they agreed with Microsoft that customers want Internet technology included in the operating system. But they also agreed with the government's position that customers should have a choice of which browser and other software technology should be included with the operating system.
Microsoft is arguing that it integrated its browser into the Windows 98 operating system to it make it easier for users to surf the Web and perform other computing tasks. The government argues that Microsoft illegally "tied" its separate browser into its monopoly product as a way to dominate the browser market. Under antitrust law, if Justice can prove that there's consumer demand for a separate product, it may be able to show that Microsoft illegally integrated the browser into Windows.
Justice got help from Jon Kies, a senior product manager at computer maker Packard Bell NEC. He testified on Sept. 11 that many of his customers prefer a "clean" operating system without a browser, while others would like to make their own choice between Microsoft's Internet Explorer or Netscape Communications Corp.'s rival browser. Because of that, he would prefer that Windows 98 not include an embedded browser. Justice contends that Microsoft integrated its browser into Windows 98 to kill off Netscape's browser, while Microsoft contends that Windows 98 is a single product with the kind of browsing functions that customers want.
50-50 CHOICE. Under a deal it struck with Microsoft last January, Packard Bell NEC is allowed to remove access to the browser in Windows 95 for two model lines of computer notebooks. The company then offers customers a choice of either Internet Explorer or Netscape Communicator -- both provided on a separate disk. Kies said market research showed "that there was about 50% market share for Internet Explorer and Netscape. So to respect that market share and to make it easier for our customers, we decided to exclude it" from these laptops. If Packard Bell chose which browser to include, he said, then those customers who preferred the other browser would have to remove it -- "and a lot of times customers don't feel comfortable uninstalling programs."
Kies said corporate customers that use Netscape for their company intranet would face problems when they install Windows 98, because it would mean more training for employees and more confusion.
In other deposition testimony, David A. Limp, a vice-president of Network Computer Inc., which makes corporate operating systems, noted that while he usually sells browsers "bundled" along with other software as part of his systems, he does not consider a browser as part of the operating system.
He compared the bundling of browsers and other applications into the operating system to a McDonald's value meal: "You get the super size, the whole thing, and it may be a little cheaper because you put them all together.... But in fact you can subset out pieces of those things, and if you just want one cheeseburger and not two, you can go to the menu and do that, too."
SIMPLY LINUX. He says that while he includes the browser and other Internet-related technology in his operating systems, he has removed them at the request of customers. Sometimes, he said, companies want to prevent employees from having access to the browser. "Access to the Web...wouldn't add gains to your productivity," he said.
Their testimony was echoed by Bryan Sparks, president and CEO of Caldera Inc., a distributor of the Linux operating system, which has been gaining ground against Microsoft's Windows NT Server. Caldera has filed a private antitrust suit against Microsoft.
During his July 9 deposition, Sparks said he didn't consider any browser to be part of Linux. He also said he didn't require resellers to distribute or install browsers with the Linux operating system. Said Sparks: "It doesn't make sense for us to do that. The reseller knows what the customer needs better than we do. He's closer to the customer."
On Dec. 17, Justice may release about 10 other depositions. The trial will resume on Monday, Jan. 4, when Intuit Corp. CEO William Harris takes the witness stand.
By Susan Garland in Washington
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