Pc Makers Will Still Bundle Web Browser Even If Microsoft Can’t Require Them To

Personal computer makers say they won’t stop including Microsoft Corp.’s Internet Explorer on their products even after the world’s largest software maker was forbidden to require them to use it.

Compaq Computer Corp. and International Business Machines Corp. said they’ll also include rival Netscape Communications Corp.’s browser on some PCs, in order to offer consumers the most choices in software and try to steer clear of taking sides in the browser battle between Microsoft and Netscape.

“It’s a benefit to our customers to be able to offer both. We will do whatever our customers want,” said IBM spokesman Bill Hughes.

Yesterday, a U.S. district judge granted a preliminary injunction against Microsoft, saying it was justified to guard against the risk that Microsoft might wipe out competition for Internet web browsers. Microsoft already dominates the market for operating systems. Its MS-DOS and Windows programs are found in 75 percent of the world’s PCs.

Microsoft is now barred from requiring computer makers to offer Internet Explorer in order to license any other Microsoft PC operating system. Estimates of Microsoft’s piece of the browser market range from 33 percent to 39 percent. At the end of 1996, Microsoft had about 20 percent of the market and Netscape had 73 percent.

Microsoft’s stock fell 2 5/16 to 136 3/4. Netscape shares rose 1 5/8 to 27 7/8.

Compaq, the No. 1 PC maker worldwide, said most of its machines use Internet Explorer, though a few of its notebook models come with e Netscape Navigator as well because some consumers prefer that program.

“We will continue to provide customers what they want,” said Jim Finlaw, spokesman for Houston-based Compaq.

The ruling could be a win for consumers, analysts said, because it means they will be able to make their own decisions about which browser to use and not be forced into one or the other. It also isn’t expected to hurt PC sales, even if Microsoft’s Windows 98 operating system is delayed.

Microsoft had planned to include Internet Explorer as a feature in its Windows 98 system, which is due out next year. The company had required computer makers to install Internet Explorer as a condition of their Windows 95 license.

Netscape, as expected, said the ruling was important because it helps that company compete better with Microsoft.

“It starts to level the playing field,” said Lori Mirek, senior vice president of marketing at Mountain View, California-based Netscape.

Still, several other computer makers don’t offer Netscape Navigator now and said they don’t have any immediate plans to change that policy.

“For us, it’s not a Microsoft issue. It’s a customer issue,” said T.R. Reid, spokesman for Dell Computer Inc., the biggest direct seller of PCs.

He said customers who request Netscape can have it specially loaded on their systems for an additional fee, but only Internet Explorer is automatically included without a special request.

Hewlett-Packard Co. is reviewing the judge’s decision, but still has no plans to start offering Netscape, said Larry Sennett, spokesman for the Palo Alto, California-based computer maker.