American History 1988
Chapter 407 - 396: There is No King in America

Chapter 407: Chapter 396: There is No King in America

Due to the disturbance caused by the party members, the Department of Justice had to suspend the previous sanctions.

In Seattle, they insisted that their bundling of the browser did not violate the previous settlement agreement.

Because a browser is not an application software, it is an extended function that comes with the Windows system.

Yes, as long as the browser is argued to be a system function, it doesn’t count as Microsoft’s violation of the agreement.

But clearly, the Department of Justice was not so easily fooled, and Microsoft’s sophistry made industry insiders laugh.

However, Seattle never gave up their reasonable explanation for the bundling behavior, and at the same time, Microsoft’s spokesperson also appeared quite innocent.

"They always accuse Microsoft of monopolizing the market, but the fact is that we hold a very small share in the browser domain.

They are the market leaders, and additionally, to prevent Microsoft from entering this field, we have reason to suspect that the other party used some unconventional methods."

In response to Microsoft’s accusations, Netscape immediately made a rebuttal.

"Microsoft leverages its monopoly position in operating systems to gain bargaining chips in the browser market—that is a fact.

Just because they have not achieved a dominant position in the browser market does not mean that their behavior is not monopolistic.

That’s not the case; what matters is the method they used—that’s the crux."

As for Microsoft spokesperson’s baseless accusations, Netscape simply ignored them, questioning who would believe such a claim.

The confrontation between the two companies did not affect the Department of Justice’s continued investigation.

And while Washington was engulfed in a maelstrom of uncertainty, Dean had arrived in Virginia.

His trip was officially for business, and he was accompanied by executives from other high-tech companies.

"You know, it’s a sensitive time, I can only use occasions like these for brief meetings."

Dean met with the owner of the White House in the Oval Office, and today a meeting on the tech industry was scheduled.

Using the half-hour before the meeting began, Dean needed to discuss and plan their next move.

"We only have ten minutes," Clinton glanced at his wrist, then gave his personal assistant a look.

"OK, that’s enough," Dean also nodded to his assistant Caitlin, who immediately handed over a document.

"This is the evidence we’ve collected regarding all of Microsoft’s violations, as well as testimonies from other companies that have encountered similar issues in competing with them."

Clinton flipped through it nonchalantly, "What do you plan to do?"

"I’ve contacted some allies, and they will submit requests to initiate investigations into Microsoft concurrently.

This should expedite some procedural issues, such as having the lawsuit filed directly by the Department of Justice."

The underlying meaning in Dean’s words was that relying solely on the Department of Justice’s pace was too slow.

He had already coordinated with allies in advance, so that as soon as the Department of Justice reached out to them for evidence during the investigation, they could cooperate very actively.

This would save a lot of time, potentially making the investigation phase even shorter than the time it takes to file a case.

Hillary and Clinton exchanged glances, surprised by Dean’s efficiency.

Normally, in such large-scale case investigations, convincing corporations to cooperate is not an easy task.

But Dean seemed to have smoothed things over with them beforehand, which made them realize once again his influence within the industry.

"Alright, how far do you want to go?" Hillary asked for her husband.

"Split Microsoft, divide its operating system and application software businesses into two separate companies."

This was Dean’s ultimate goal. Only by doing so could the internet companies he invested in, such as Bit and Netscape, remain unthreatened by Microsoft.

"And this must be done swiftly, ideally completed before the end of 1998."

This was another critical point; any delay would only benefit Microsoft.

Moreover, it was Clinton’s second term, and the Microsoft split must be completed before he left the White House.

Otherwise, who knew what would happen during the next term.

There is a saying: Use it or lose it.

Dean and Clinton’s alliance had a long history; this might be the last time Dean could exert such significant influence on the federal government’s decisions.

Furthermore, 1998 was not looking to be a good year, as it was highly likely that their dear president might not manage his zipper well.

So, it was imperative to resolve these matters before then.

Hillary tapped her fingers lightly on the table, not responding immediately.

Dean thought she was pondering something when suddenly she looked up and asked.

"What about splitting it into three companies?"

"What?" Dean was startled.

"Divide Microsoft into three, make the browser business a separate company."

Hillary thought Dean’s plan was still too conservative. Only by dissecting Microsoft more thoroughly could Netscape’s future business be unaffected.

You use the advantage of the operating system to serve the browser business, right?

Then I will make your browser an orphan without any leverage to utilize.

Jokingly, the wealth of both of them was on the line. Not thoroughly pressing down Microsoft, Hillary would be the first to feel uneasy.

"Uh, actually, it doesn’t make much difference to us," Dean nonchalantly shrugged.

"As long as the operating system is separated from the other businesses, Microsoft’s threat will plummet."

Dean had countless ways to thoroughly crush Microsoft’s unprotected software businesses.

"OK, I will go and talk to the others," Hillary already knew what to do.

"By the way, if Microsoft is split up afterward, our investments..."

"The foundation will split them to your advisory team. Whether to hold or cash out will be up to you,"

Dean very aptly made his commitment, which served as a certain kind of bargaining chip in the deal.

"After the split, Dean, would you help manage them?" Unexpectedly, Hillary was not eager to cash out.

On one hand, due to competition with Microsoft, Netscape’s stock price had not reached its previous peak.

Moreover, Clinton’s term had not yet ended.

If a substantial asset suddenly appeared under their name, it would be hard not to suspect insider trading.

Therefore, for safety, it was only fitting to personally take over Netscape’s investment after Clinton stepped down.

"Of course, I’d be delighted," Dean had no reason to refuse. He could only reluctantly agree.

The matter was settled, and there was an industry talk to be held next; Dean also rose to take his leave.

However, Clinton stopped him, "Dean, there’s something you must promise."

"What?" Dean stopped in his tracks, puzzled.

"In your competition with Microsoft," Clinton’s eyes were meaningful, "did you also use some unconventional methods?"

Dean paused, then casually answered, "Netscape was not involved in that."

"You know I’m not talking about Netscape," Clinton stepped closer and said in a low voice, "Some people in Congress are worried about this.

They fear your influence over the internet because the federal government hasn’t managed to do that yet."

"That’s just a rumor. They are exaggerating my intentions," Dean explained, composed.

"No, do you know what people say about you behind your back?" Clinton’s eyes carried a slight warning.

"They say you are the czar of the internet! Anyone who tries to take power from your hands will be your enemy.

Gates only controls the computer world, but you command the world of information. You can even decide what information people receive.

Dean, this isn’t a good thing for you. It will only make you a target in many people’s eyes, the CIA, the FBI, etc...

Furthermore, in the history of America, there has never been a king, and Americans don’t allow a king in any business field."

If such a person really existed, he would definitely be the next target of the Department of Justice.

"So what are their conditions?" Dean had become calm by then.

"Reduce your holdings in ISP operators," Clinton disclosed the federal government’s conditions.

"Divest gradually within two years after the Microsoft antitrust case ends until you hold stocks in no more than two companies.

Moreover, the stock share in these two companies must not exceed 10%."

Dean narrowed his eyes slightly, but eventually nodded his head.

"Tell the old men on Capitol Hill to start working," he said, and then he turned and left the Oval Office.

"He’s upset, but it’s understandable," Hillary walked over and hooked her arm in her husband’s, "after all, this is a legitimate return on his investments."

Although many people regarded Dean as the czar of the internet, they also recognized his role in promoting the development of the internet.

"I know, but people won’t be comfortable handing over the power of information to one individual."

These were the conditions for splitting Microsoft; neither Gates nor Dean would become the dominant leader.

...

In September, as the news was still debating whether Microsoft’s behavior constituted monopolistic practices,

Sun Microsystems and Novell suddenly also began to request an antitrust investigation into Microsoft.

Not only that, computer manufacturers also began to accuse Microsoft and Gates of previous coercive practices.

The situation had fundamentally changed; it seemed no longer just a competition between Netscape and Microsoft.

Looking at the media reports, it appeared the whole industry was resisting Microsoft’s actions.

In Yahoo News’s description, the Microsoft based in Seattle had certainly become synonymous with negative images like "evil empire" and "Godzilla."

It was also at this time that the Justice joined 19 states in officially suing Microsoft for numerous monopolistic practices.

This primarily included illegally conducting exclusive sales arrangements, bundling the Navigator browser with the Windows system, and using unlawful means to monopolize the browser market.

By then, the antitrust matter had become irrelevant to Netscape.

Because only the Department of Justice can initiate an antitrust lawsuit, companies like Netscape and Sun Microsystems could only file a request.

But the real executing parties belonged to federal government agencies, turning this essentially into a public lawsuit.

Undoubtedly, the Justice Department’s sudden initiation of a massive antitrust lawsuit,

not only shocked the media but also caught Seattle off guard.

They thought the Department of Justice’s previous concession on a $1 million fine would bring the matter to a close.

But who knew the situation would develop to this extent, where the scenario could almost be described as turning on a dime.

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