Justice May Be Widening Microsoft, Netscape Probe Department Asks For Documents On Varied Internet Applications

The Justice Department has asked Netscape Communications Corp. for a range of documents related to its antitrust probe of Microsoft Corp., suggesting the investigation is wider than Microsoft has maintained.

A lawyer for Netscape said Friday that the Justice Department had requested details on an array of Internet technology - not just its popular Navigator “browser” for cruising the World Wide Web.

Netscape is in the process of responding to the Justice Department request, said Gary Reback, the San Francisco-based antitrust attorney. The company also makes software that helps companies manage “intra-nets,” or private Internets through which employees collaborate on projects, exchange e-mail and perform other functions.

The request is the latest step in the government’s investigation of how Microsoft sells its Internet software to determine whether the dominant PC software maker is trying to stifle competition in the fastest-growing part of the technology industry.

The Redmond, Wash.-based company denies the charges and reiterated Friday that it believes the Justice investigation is more narrowly focused on the rivalry between the companies’ Internet browsers.

“We are working closely with the Justice Department and we have received absolutely no indication that this inquiry is broadening to cover anything other than browser technology,” said Mark Murray, a spokesman for Microsoft.

The conflicting portrayals by the Internet’s highest-profiles rivals escalated the rhetoric in their legal and marketing battle.

Netscape, based in Mountain View, Calif., still is the leading maker of software used to find and publish information on the World Wide Web. But in August it urged antitrust regulators to examine whether Microsoft is using its dominance in personal computer operating systems to influence computer makers, Internet service companies and others into making Microsoft’s software the only choice for accessing the Internet.

Netscape accused Microsoft of charging PC makers less for its Windows 95 operating system if they don’t pre-install competitors’ Web browser programs.

The Justice Department had asked Microsoft for documents in September.

A Justice Department spokeswoman refused to comment on any government requests for documents but noted that the antitrust division is continuing its investigation of Microsoft.

Antitrust lawyers said a broad Justice Department inquiry seemed like a logical progression in the probe, since Netscape has asserted Microsoft is trying to extend its dominance in desktop software across the range of Internet products.

The Justice Department’s antitrust division has scrutinized Microsoft’s business practices since 1993. In 1994, Microsoft agreed to stop discounting practices that encourage PC makers to pre-install its operating programs rather than those of competitors.

Murray reiterated Microsoft’s assertion Netscape is just trying to divert attention from a new Microsoft browser that is technically as good as Netscape’s.

Antitrust attorneys said the Justice Department’s first interest is to make sure Microsoft is complying with the 1994 agreement.

“It’s no surprise that the Justice Department investigation is looking into issues other than browsers,” said Jonathan Jacobson, a lawyer in the New York office of Akin Gump.

“The more serious issue is whether they broke the consent decree.”