Senator concerned about Microsoft's dominance

Journal Record, The (Oklahoma City), Nov 5, 1997

WASHINGTON (Bloomberg) -- A key U.S. senator believes Microsoft might be abusing its dominance of the computer software industry in its dealings with Internet service providers and entertainment companies.

Senate Judiciary Committee Chairman Orrin Hatch Tuesday said he was concerned about ties between Microsoft and Internet content providers Time Warner and Walt Disney. He said those companies are providing online information that can be accessed only by viewers using Microsoft's Explorer browser.

Hatch's comments turned up the political heat on the software giant, which already is facing Justice Department charges that it is violating a 1995 antitrust settlement by coercing computer-makers into featuring Explorer. "I have serious concerns about Microsoft's recent efforts to exercise its monopoly power," the Utah Republican said at a committee hearing on a broad range of Internet issues. Hatch said he "may well hold hearings down the road" specifically on whether Microsoft is violating U.S. antitrust laws. Microsoft's chief government affairs director, Jack Krumholtz, called Hatch's comments a "red herring." He said Time Warner and Disney merely tell online visitors that using Microsoft's browser will enhance viewing, but don't prevent them from getting the same information with a Netscape Communications browser. "We do not stop anyone from using a Netscape browser," Krum-holtz said. Hatch also said he was concerned about what he called "exclusive licensing agreements" between Microsoft and Internet service providers. At one point Hatch held up a licensing agreement between Microsoft and service provider EarthLink Network. Hatch said that agreement limited EarthLink's ability to tell customers they could use another browser to get online. His comments drew a generally favorable response from a panel of witnesses that included antitrust lawyers, industry officials and an economist. The makeup of the panel prompted Krumholtz to charge that some of the panelists had "an anti-Microsoft bias." "It's unfortunate that there was a Microsoft focus to the hearing," Krumholtz added. "These are not Microsoft-specific issues. These are industry-specific issues." None of the senators who attended Tuesday's hearing expressed support for Microsoft in its fight against the Justice Department. In addition to Hatch, Sen. Ted Kennedy, a Massachusetts Democrat, said he supported the Justice Department's move against the company. Several others mentioned the company but didn't take sides in the legal dispute. Krumholtz said Microsoft, which offered to testify at Tuesday's hearing, would welcome the chance to make its case to the senators. "I assume we will have an opportunity to present our position" to the committee, he said.