Antitrust Suit Filed Against Microsoft

Bill Gates TestifyingMay 18, 1998

The United States Justice Department and the Attorneys Generals of twenty states plus the District of Columbia file an antitrust lawsuit against Microsoft. The case focuses on Microsoft’s integration of the Internet Explorer web browser into its Windows 98 operating system. The trial becomes one of the most famous events in tech history, eventually resulting in a settlement between the DOJ and Microsoft. In fact, the sanctions levied against Microsoft lasted until May of 2011, almost exactly 13 years after the suit was filed.

Microsoft Registers Their Domain Name … Finally

May 2, 1991

Microsoft registers the microsoft.com domain name. For such a major technology company, notably this was over 6 years after the domain name system was created and the first domain name registered, and over 4 years after competitor Apple registered apple.com. I guess it was no surprise that it took Microsoft another 4 years to recognize the growing importance of the “Internet Tidal Wave“, about a year after the World Wide Web was already gaining mainstream popularity and most of the rest of the technology industry were already on board.

Microsoft Acts Mousey

Original Microsoft MouseMay 2, 1983

Microsoft introduces the Microsoft Mouse for IBM and IBM-compatible PCs. The mouse featured two green buttons and is available by itself or will later be bundled with the new Microsoft Word software, which Microsoft would release in September. Because of the green buttons, the mouse was nicknamed the “Green-Eyed Mouse”, which may have been a fitting name given it’s similarity to the Shakesperian phrase “green-eyed monster” to describe jealously. It was no secret Bill Gates was very envious of what Apple was creating with the Lisa and later Macintosh computers and their mouse-driven interfaces. Microsoft will manufacture nearly one hundred thousand units of their first mouse, but will only sell five thousand before introducing a second, more popular version in 1985.

Microsoft would go on to create a very successful line of mice and other computing peripherals over the years, but almost ironically Microsoft announced in April of 2023, nearly 40 years later, that they would end the production of Microsoft-branded peripherals and focus on their Surface-branded peripherals. This came months after Microsoft announced a 30% year-over-year drop in revenue from devices, cut 10,000 jobs, and announced “changes to their hardware portfolio”.

Justice Department Blocks Microsoft Purchase of Intuit

April 27, 1995

The US Justice Department sues Microsoft to block its acquisition of Intuit, Inc. In October of 1994 Microsoft and Intuit had agreed to a $1.5 billion stock swap where Microsoft would acquire the maker of the popular Quicken personal finance software. It would have been the largest software company merger in history at the time. Quicken had approximately 75% of the personal money-management software market. Microsoft’s Money software only had about 5-10% percent. Microsoft had intended to sell Money to rival Novell in order to avoid anti-trust accusations, given that Microsoft had only recently settled a 4-year government investigation into harmful business practices. However the Justice Department was not satisfied with this arrangement and claimed that the combined Microsoft and Intuit would hold too much power over the personal finance market. While initially Microsoft and Intuit remained committed to the deal and vowed to fight in court, less than a month later Microsoft announced it was walking away from the merger.

It is interesting to consider what may have happened if Microsoft had bought out Intuit. Certainly Microsoft would have been a significantly stronger company in the short term. Clearly Intuit’s Quicken and Quickbooks combo of software became the de facto standard for finance software for many years and it would have in theory only become more entrenched had it been under the umbrella of Microsoft. As it stands, Microsoft eventually discontinued Money in 2009.

 

Windows 98 is Plug and … Whoa?

Windows 98 BSODApril 20, 1998

During the COMDEX Spring ’98 and Windows World shows in Chicago, a public demonstration of the soon-to-be released Windows 98 goes awry when Bill Gates’ assistant causes the operating system to crash after plugging in a scanner. Instead of showing the plug-and-play capabilities they were trying to demonstrate, a “Blue Screen of Death” is visible by the entire audience which immediately erupts in laughter. After several seconds, Bill Gates famously responded, “That must be why we’re not shipping Windows 98 yet.”

Ironically, the assistant, Chris Capossela, has moved up the executive ranks at Microsoft, all the way to Executive VP and Chief Marketing Officer. For Microsoft’s sake, hopefully he’ll present a much better marketing image then he did that fateful day!

Windows 3.1 Released

Windows 3 LogoApril 6, 1992

Microsoft releases Windows 3.1, priced at $149.00, selling three million copies over the next two months. Windows 3.1 added multimedia extensions allowing support for sound cards, MIDI, and CD Audio, Super VGA (800 x 600) monitors, and increased the speed of modem it would support to 9600 bps. For many of us that were into computers back in the day, it was the first version of Windows we actually used, as previous versions were still gaining consumer acceptance and Windows 95 wasn’t released until 3 years later.

Microsoft Formed

Bill Gates & Paul AllenApril 4, 1975

Microsoft is founded as a partnership between Bill Gates, age 19, and Paul Allen, age 22, in Albuquerque, New Mexico. The company was created to develop the BASIC programming environment for the MITS Altair 8800. MITS was headquartered in Albuquerque so Gates and Allen moved there from Boston to launch their company. Eventually they decide to move Microsoft to the Seattle, Washington area, where both men were from originally and met in high school.

Microsoft’s First Hardware Product

Z-80 Card AdApril 2, 1980

Microsoft announces its first hardware product, the Z80 SoftCard. The SoftCard is a microprocessor that plugs into the Apple II personal computer allowing it to run programs written for the CP/M operating system. CP/M was a very popular OS for early personal computers along with much of the software written for it. In particular, the word processor WordStar is so popular that people will purchase the SoftCard and a companion “80-column card” just to run it on the Apple II. At one point, the SoftCard product will bring in about half of Microsoft’s total revenue. It will be discontinued in 1986 as CP/M’s popularity declined.

Microsoft Bob is Spawned

Microsoft BobMarch 31, 1995

Microsoft releases their epically ill-fated software package, “Bob“, whose name will forever live in infamy. Given the tide of popularity and visibility Microsoft was riding on the way to releasing Windows 95 later that year, Bob was the first highly visible flop from Microsoft. Future flops from Microsoft included Windows ME, the Zune, and Windows Vista to name a few. While Bob was “killed” only a year later, many of the ideas that went into Bob were salvaged by Microsoft, most notably the “Clippy” assistant, which was perhaps as equally as derided by computer users. Read this excellent write-up on the history of Bob.

20-Year Old Bill Gates Gives Address

Young Bill GatesMarch 27, 1976

Bill Gates gives the opening address at the First Annual World Altair Computer Convention in Albuquerque, New Mexico, giving a talk about software piracy.

In early 1975 Gates had been a student at Harvard but along with Paul Allen developed a version of the BASIC language for the MITS Altair computer. They demoed it to MITS in March of that year and MITS agreed to distribute it then hired Gates and Allen to continue development. Gates and Allen soon moved to Albuquerque to form Microsoft (originally “Micro-Soft”) since MITS’s headquarters was also located in Albuquerque.