U.S. Suit Expected Against Microsoft Over Windows 98

SEATTLE —  The Justice Department is expected to file a broad-ranging antitrust suit against Microsoft Corp. next week aimed at restricting the company’s ability to defend and extend its dominance of the computer desktop.

Although no final decision has been made, attorneys close to the case say the Justice Department will file the suit before next Friday, when the Redmond, Wash.-based company is due to begin shipping its Windows 98 operating system software to computer manufacturers. Thirteen state attorneys general are expected to file a separate antitrust lawsuit soon afterward.

The Justice Department’s primary concern is expected to be the integration of Microsoft’s Internet Explorer browser into Windows 98. The government has already challenged Microsoft’s bundling of Explorer with Windows 95, Microsoft’s current operating system that is used on about 90% of all computers.

Microsoft stock fell $3 on Thursday to close at $83.38 on Nasdaq. The stock has dropped 16% from its all-time closing high of $98.88 on April 22.

The Justice Department’s new suit is expected to ask the courts to force Microsoft to sell a version of Windows 98 without a browser attached or to hide the Explorer icon on the desktop so new computer users won’t turn to that browser first to get onto the Net.

In addition, the government is expected to challenge Microsoft’s push to develop a version of Sun Microsystem’s Java programming language that would work exclusively on Windows.

There is also speculation that regulators will ask the court to reexamine Microsoft’s contracts with computer manufacturers.

Times wire services were used in compiling this report.