Computer Companies Urge DOJ Not to Stop Windows 98

(May 4, 1998)  Twenty six leading personal computer manufacturers, retailers, chip makers, and software companies sent a letter to the Justice Department warning that government intervention into the launch of Microsoft Windows 98 would harm their businesses, consumers, and the economy.

"We are writing to express our strongest possible concern that the release of Windows 98 would be enjoined by government antitrust litigation", the one page letter began.  The letter continued that in addition to harming the signatory companies, any government imposed delay would harm the industry and the economy:

"The direct effect on the U.S. economy of a delay to Windows 98 would be considerable: more than 2 Million Americans, for instance, develop software that runs on Windows, while a similar number work in the computer services industry. Millions more work in industries creating new hardware devices, including many that Windows 98 supports for the first time. But any action against Windows 98 would also have a far broader impact. Businesses would be unable to reap the productivity gains promised by a new generation of software and PCs working in tandem. Consumers, deprived of the right to buy the latest innovative PC operating system - and therefore the reason to buy new devices and software that work with it - would keep their cash in their pocketbooks. Interfering with the release of Windows 98 would drag down the entire industry's efforts to deliver value to customers and returns to shareholders."

Competitors of Microsoft which have successfully lobbied the Department of Justice to pursue Microsoft, including Netscape, Oracle, IBM, and Sun Microsystems, did not sign the letter.

The signatory companies included most of the leading personal computer makers, including Dell, Compaq, Hewlett-Packard, Sony, Micron Electronics, and Packard Bell NEC.   However, neither Apple, IBM, nor workstation maker Sun Microsystems joined in the letter.

Chip makers Intel and Advanced Micro Devices also signed.

Many large software companies did not sign the letter, including Novell, Adobe, Computer Associates, and Computer Sciences.   However, many mid and small sized software companies did: Symantec, Macromedia, Chili!Soft, Inc. (active server pages), GT Interactive Software (entertainment), Visio (diagramming), ComponentSource, Sax Software, Sheridan Software Systems, Elsinore Technologies (bug tracking system software), and Corporate Software and Technology.

Most leading computer and software retailers also signed the letter: Office Max, CompUSA, Computer City, CDW Computer Centers, Electronics Boutique, Merisel, and Insight Enterprises.

Network integrator Vanstar Corporation was also a signatory.

Late Friday a representative of Department of Justice, Office of Public Affairs, stated that the DOJ had not yet received the letter, but nevertheless, that it would have no influence upon the DOJ.