Justice May Force Windows 98 Delay

The U.S. Justice Department is considering seeking to delay the release of Microsoft Corp.’s much-anticipated Windows 98 operating system, due to be delivered to PC makers in three weeks, a person familiar with the investigation said.

A delay is one of the options being considered by federal antitrust regulators, who are expected to decide by May 15 whether to bring another antitrust suit against the software giant, the person said. If such a suit is filed, government lawyers would seek a temporary restraining order.

Justice Department officials said no decision has been made on whether to file a lawsuit.

A lawsuit likely would accuse Microsoft of using exclusive business agreements and unfair business practices to protect and extend its monopoly in the market for PC operating systems.

A government lawsuit in October accused Microsoft of violating the terms of a 1995 agreement that prevents it from linking other software products to Windows 95. That case is being reviewed by a federal appeals court in Washington, D.C.

For its part, Microsoft isn’t ruling out a delay for Windows 98. “We’ve not been approached about this and we’d have to wait and see,” said Microsoft spokesman Jim Cullinan.

Windows 98, the so-called “tuned-up” version of its predecessor, Windows 95, is expected to be shipped to computer manufacturers by May 15 for installation in new PCs. Consumers could buy Windows 98 starting on June 25, the official worldwide launch, at retail outlets.