American History 1988
Chapter 397 - 386 The Big Show is About to Begin

Chapter 397: Chapter 386 The Big Show is About to Begin

If Microsoft ordered computer manufacturers to include its own browser in the pre-installed system, that could be considered unfair competition.

But to go a step further and demand these manufacturers to prohibit services for Netscape’s Navigator browser crosses a line into blatant monopolistic behavior.

There is a fundamental difference between the two: the former is about coercive promotion, while the latter involves creating barriers to competitors.

In America, if a juggernaut is accused of monopolistic practices, it is indeed a very serious charge.

The cases of Standard Oil and AT&T prove this point, and since then, no company has dared to take such accusations lightly.

So the question arises, why did Microsoft dare to take this step and try by all means to block the spread of the Netscape browser?

Firstly, after Compaq’s compromise, Microsoft’s browser market share showed significant growth.

About 12% of the market share, compared to Navigator’s initial less than 1%, was already a big improvement.

At least now, some developers were willing to create plug-ins for the Navigator browser.

This was visible progress—in plain terms, Microsoft had tasted the sweetness of success.

Secondly, Microsoft faced some obstacles with policy promotion in other areas.

First and foremost was with ISP operators, where, over the course of a few months, Seattle secured promises from only a handful of providers.

Without the cooperation of ISP operators, it was almost impossible for Microsoft’s browser to penetrate the existing market.

Gates couldn’t wait any longer; he knew that as time passed, Netscape’s position would only become more secure.

Therefore, the sooner action was taken, the better—before Netscape’s development platform could infiltrate every aspect of the industry, this issue had to be resolved.

It was this line of reasoning that led Microsoft to disregard potential legal risks and to ignore the previous warnings from Washington, starting to act unilaterally.

Yes, Hillary had sent messages to Gates. However, just as someone had called Dean, they didn’t take it to heart.

Microsoft thought that even if Netscape filed a lawsuit, that would be an issue for years down the line.

The current priority was the internet strategy; for that goal, even a potential hefty fine in the future was worth it.

Thus we have the scene now, where Dean received a friendly notification from Silicon Valley that the people from Seattle had gone too far.

"What did HP say about Microsoft forcing them to set up barriers against Netscape?" Dean, who had planned to go to Utah, had hurried back to Mountain View.

"This is HP’s statement, published in today’s Daily Chronicle," Barksdale handed the newspaper to Dean.

Just a few days ago, after Microsoft and computer manufacturers signed a new restrictive agreement, Seattle finally revealed its fangs.

They demanded original equipment manufacturers to forbid offering help pages for software to users of the Netscape browser.

Note that the help pages mentioned here are not the web help pages that appear after opening the browser.

They refer to printed materials, specifically, part of the equipment user manual.

Manufacturers like HP usually provide a detailed user manual for their products.

This includes not only the computer’s identification tips, usage methods, and troubleshooting but also tutorials for the software in the pre-installed system.

For example, if both Netscape Navigator and Microsoft’s Internet Explorer are included in the pre-installed system, HP’s user manual will naturally introduce both and include respective tutorials.

Now with the newly signed restrictive agreement, Microsoft demanded that manufacturers delete all content related to the Netscape browser from the manuals.

Yes, you read that right; this is Microsoft’s tactic.

They directly blocked the printed content aimed at new users of Netscape.

Microsoft didn’t think there was anything excessive about their actions; they believed it all to be justified.

According to the terms of the agreement, they had the right to require computer manufacturers to comply with Microsoft’s design.

So what were the consequences of this action? It reduced users’ experience with the Netscape browser.

Do not underestimate the necessity of a printed manual, nor overestimate the cognitive level of Americans under a happy education system.

Many people touching a computer for the first time had never heard of the internet, let alone using a browser to go online.

Even if some were aware, they might not know how to use it.

Since the internet was just starting to become widespread, computer and network knowledge still belonged to a minority.

In later generations, those who experienced the explosion of information could use various software without a manual.

But not now, with a population close to 200 million and only thirty million internet users, the internet was still a rare commodity.

Without a paper manual’s assistance, these new users were likely clueless on how to use a browser.

At this point, given two browsers, one with a manual and one without any information,

which one would new users choose? The answer is obvious; this was Microsoft’s intent.

But what about the computer manufacturers? They were strongly opposed to this.

It wasn’t that Netscape was that important, but that it would increase service costs for the manufacturers.

Lacking a Netscape browser user manual meant a reduced user experience with brand computers.

Meanwhile, they had to deal with calls from frustrated consumers who couldn’t use the Netscape browser.

After all, Netscape’s brand effect was much stronger than Microsoft’s, and many new users would choose Netscape’s browser for its reputation.

Microsoft’s actions, though creating hurdles for Netscape, also added many troubles for the computer manufacturers.

Seattle’s overstepping behavior finally induced a strong industry backlash.

If it were just competition between Microsoft and Netscape, they wouldn’t care.

But the premise was that it shouldn’t increase the costs for computer manufacturers—no one was willing to foot the bill for Microsoft’s selfish actions.

So, HP’s CEO John Young, having negotiated to no avail with Microsoft, couldn’t bear it any longer and released this public statement.

It was in Dean’s hands, and at this moment everyone in the office was focused on it.

"We must be able to decide how to present our systems to our end users.

Based on your (referring to Microsoft) actions in this field, if we could choose other suppliers,

I can assure you, we would never choose Microsoft!"

"I urgently urge you to review your decisions and change these unacceptable policies!"

Click, Dean closed the newspaper.

"What’s the reaction from Microsoft now?"

"Nothing," Clark and the others shook their heads, "Seattle hasn’t shown any reaction."

"What about the computer manufacturers?" Dean’s brain was racing.

"Compaq, DEC, and Tandy all expressed support for HP’s statement, but some brands remained silent."

This wasn’t surprising to Dean, the effect of Microsoft’s warning to Compaq was not without impact.

"I’m going to make a call." Dean handed the newspaper to Clark and walked to the side.

He took out his mobile phone, flipped through his contacts, and quickly dialed a number.

"John, thank you for your outspoken support."

"Dean, it’s Microsoft that has crossed the line. Windows 95’s dominance in desktop systems has made Gates forget himself,"

John Young’s tone sounded worried, this time it was about Netscape.

What if, for the sake of other competitors next time, computer manufacturers like HP have to do something even more outrageous?

In John Yang’s view, the Windows operating system had become a "Sword of Damocles" in Gates’s hand.

If anyone disobeyed, they would feel its sharpness.

"John, you’re right, Microsoft has crossed the line," said Dean in an inexplicable tone.

"Dean, you..." John Yang seemed to sense something.

"I can assure you, Netscape will definitely be the final victor.

Gates treats the operating system as a weapon, but with each swing, he’s digging his own grave."

Now that Microsoft had shown its true colors, naturally Dean saw no reason for courtesy.

John Yang felt unexpectedly shaken by Dean’s confidence; his intuition told him the main show was about to begin.

"We all willingly provide excellent products to our users, and if Netscape maintains its lead, HP will undoubtedly continue to offer support."

Both being Silicon Valley enterprises and even both affiliated with Stanford, HP and Dean’s company had always had a good relationship.

The executives of the two companies often went back to Stanford together to give lectures; they both hailed from there and had utilized the school’s talent and technological resources.

Where there were no conflicts of interest, HP naturally had no objections to standing up for Netscape.

"By the way, John, the tyranny of Microsoft in operating systems,

Whether to software companies or computer brand manufacturers, is a huge threat.

So, shouldn’t we start considering alternative solutions?"

Dean’s last words involuntarily made John Yang shiver.

"Alternative solutions? Dean, do you mean..." Okay, he was stunned by the news.

"I’m planning a trip to Utah soon. Novell’s new strategy is quite interesting; perhaps we should find out more.

Of course, I will also reach out to Compaq, DEC, Tandy, and even IBM.

We need to discuss together and at the very least, we should have a fallback for ourselves and not always be choked by Microsoft."

Dean’s words made John Yang’s lips twitch—it was quite a tempting proposal, wasn’t it?

Just yesterday he had issued that strong statement—if there were other system suppliers, HP would definitely not choose Microsoft!

"If everyone finds it necessary, then I have no objections," said John Yang, not knowing whether Dean was speaking off the cuff or actually planning it.

So he didn’t make any definite promises, but in reality, it already betrayed his thoughts.

Microsoft’s overbearing actions had indeed provoked strong industry resentment.

Hanging up the phone, Dean’s gaze flickered.

He had many more calls to make, including to the other computer manufacturers mentioned earlier, as well as to Washington and the lawyers.

Or perhaps to Seattle’s Gates?

It was time to take action—he had waited for this day for a long time.