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Microsoft to Pay AOL $750M in Settlement

aoteoroa writes "Microsoft will pay $750 million to AOL Time Warner to settle an antitrust lawsuit filed by AOL on behalf of its subsidiary Netscape last year, the companies said Thursday. At first blush the deal looks good, but I can't help but wonder how a deal that ties AOL to IE again will negatively impact my favorite web browser." Here's a news.com story that also covers it. Is the browser war over? If so, it sure was anticlimactic.

36 of 673 comments (clear)

  1. browser wars over?! by cuijian · · Score: 5, Interesting

    The browser wars are over? They are just starting to get interesting again. Safari for the Mac is one of the fastest and innovative browsers on the market. The Mozilla browsers continue to spawn lots of innovations and now seem focused on ease of use and performance. Things are just starting to get interesting again.

    The big news in this article is that MSFT might be successfully pushing windows media player into the AOL empire. *shudder*

    Also frightening, this deal gives AOL seven years to use IE royalty free - hopefully AOL continues to look towards a gecko based browser for their legions of users.

    1. Re:browser wars over?! by SkArcher · · Score: 4, Interesting

      Browser wars over? One word for you. Opera

      As for the "AOL have the priviledge to use IE royalty free for 7 years" well, that just stinks of typical M$hit - AOL use IE, cut out their development costs, M$ get a dependent user base (again) from the people in the position least knowledgable and least likely to realise what crud they are being palmed off with.

      What need to be done is concerted education of the legions of newcomers to the .net - yes, okay, I acknowledge that a lot of the masses are VERY annoying, but either they get welcomed to the net by those of us who know what we are doing, or they get assimilated by the GatesBorg collective.

      The mass population of the internet has to be won over to break the M$ stranglehold. The few 3l173 H4XX0Rz aren't a significant enough user base to challenge M$.

      Hmmm, I seem to have wandered violently off topic. Meh.

      --

      An infinite number of monkeys will eventually come up with the complete works of /.
    2. Re:browser wars over?! by Lemmy+Caution · · Score: 3, Interesting

      The browser wars are over the way that the Cold War is over. It is no longer the case of two contenders battling it out for dominance, with the consequence being that the consumer wins (since a split market means that developers would adhere to standards). Instead, one brower dominates the market, and the little browsers that "compete" with it do so by trying to keep up with its "functionality."

      Every other day, I still come up to sites that require me to launch IE (Mozilla is my default browser on my Windows systems, but I still need IE every so often: likewise with OpenOffice and MSOffice.) Maybe the 2% of the population that won't or can't open IE just closes those windows and goes elsewhere, but that's something I just won't do - I use browsers to see content, I don't select content based on the brand of browser I run.

      So, the browser wars are over the way that the cold war is over: there are still countries which aren't the US, but that's not really the issue - the US has demonstrated that it calls the shots and the rest of the world has to toe the line or get out of the way, and that's just what MS is doing with IE.

    3. Re:browser wars over?! by bheer · · Score: 5, Interesting

      > Mozilla's not going anywhere.

      Yes, mozilla.org won't go away, but the commercial Netscape browser -- that could well die (and a good thing too, it was a pig, with AOL adding over 20MB of its own junk)

      The best that may happen is that AOL will keep a meaningful developer presence in mozilla.org as a sort of long term insurance against any "funny stuff" from MS, and to ensure that their interests are taken care of by the OSS community -- but don't bet on it happening.

      The commercial Netscape browser (Seamonkey) will almost certainly stop being pushed real soon now (which in a way is convenient because Moz fans should switch to Firebird anyway) I honestly can't see a cash-strapped AOL paying for Netscape engineers and QA to continue working on Seamonkey -- especially if MS plays nice (and MS has no reasons to *not* play nice, their antitrust battles are dying down one by one.)

    4. Re:browser wars over?! by Steveftoth · · Score: 2, Interesting

      " I honestly can't see a cash-strapped AOL paying for Netscape engineers and QA to continue working on Seamonkey -- especially if MS plays nice "

      Why not, it's not like netscape is especially expensive? I'm sure that in all of AOL/Time Warner, they could easily fund all of netscape's development by just NOT spending money on a single movie. AOL/TW is a huge company and development of Netscape is a tiny tiny fraction of their cost to run their business. I doubt that it will be dropped.

    5. Re:browser wars over?! by bsharitt · · Score: 2, Interesting

      Hopefully as they phase out Netscape, they'll at least nudge current Netscape users toward Mozilla, so those people that have been using Netscape since 2.0, but don't know about Mozilla will know that Netscape still lives on.

    6. Re:browser wars over?! by Anonymous Coward · · Score: 3, Interesting

      This is an M$ move to cut the competition out of the game by removing development funding

      Actually, Netscape is barely "competition" and AOL is finally waving the white flag.

      They've spent 6 years and umpteen million dollars on Mozilla/Netscape for what? Lots of messageboard advocates, some bloated XUL framework crap, and a 1% marketshare?

      Hate to break it you kids, but that's called a huge pathetic failure. AOL would be much better off dumping that money into some more commercials for the next Matrix movie.

    7. Re:browser wars over?! by letxa2000 · · Score: 5, Interesting
      Maybe the 2% of the population that won't or can't open IE just closes those windows and goes elsewhere, but that's something I just won't do - I use browsers to see content, I don't select content based on the brand of browser I run.

      That's what I do--I close the window and look for another site. This is partially based on principle and partially based on my own convenience.

      First, there are so many sites out there--some that look downright awesome--that don't require QuickTime, Flash, Java applets, or IE-specific nuances. I use the latest version of Mozilla and view virtually every site I want with no problem. I don't have Flash installed and don't plan to. If I get to a site that looks downright ugly because of plugins it couldn't load or because it demands IE then I'm going to go to the other hundreds of sites that provide the same information and conform to standards. That's my decision on principle.

      Second, my decision is based on convenience. I am finally Windows-free. At least almost. I, too, sometimes need Windows: mostly when I do a consulting job that requires I develop in VB or VC++. For those cases I have Win4Lin which is awesome for running Windows applications under Linux. In fact, VB, VC++, and Word *ALL* run faster under Win4Lin than they did on the same laptop when it ran XP. Of course, IE is installed within that environment. The thing is, to get to IE I need to run Win4Lin which takes maybe 10-30 seconds to load initially. Unless I already have it running (which I usually don't), it's just faster for me to click "Back" and go to the next site on my Google search results page.

    8. Re:browser wars over?! by Phroggy · · Score: 3, Interesting

      The commercial Netscape browser (Seamonkey) will almost certainly stop being pushed real soon now (which in a way is convenient because Moz fans should switch to Firebird anyway)

      Almost certainly? Haven't been paying attention I see. Mozilla the all-in-one app is going away, and being replaced by Firebird (browser), Thunderbird (mail/news), and other apps, all of which will require the Gecko Engine to also be installed. I expect Netscape-branded versions to be released as well. Officially, Mozilla is for developers, not for end users.

      --
      $x='S24;r)>63/* h@<5+oZ)32"5cz';$me='phroggy'x$];
      $x=~y+ -xz+\0-Tx+;print$_^chop$me for split'',$x;
    9. Re:browser wars over?! by bheer · · Score: 2, Interesting

      What I meant was Seamonkey will die a double death: moz.org is moving away from it, and I expect AOL to stop shipping it too, within the year. When Firebird v1.0 ships, with AOL support or without, it will be extremely unlikely that AOL will release a Netscape-branded version of Firebird.

      Anyway, I don't think anyone here will mourn the death of the commercial Netscape distribution, although as one AC in this thread pointed out, Netscape's engineers did play a decent role in getting bugs fixed in the browser.

  2. fist pr0st! by Phroggy · · Score: 5, Interesting

    AOL will also be licensing Windows Media 9, which could affect WinAmp.

    This deal could mean more AOL content will require MSIE and WMP9. Since AOL for Mac OS X uses Gecko and WMP9 isn't available yet, that would mean Mac AOL users wouldn't be able to access that content - exactly the way Microsoft likes it.

    It seems AOL either has no idea what they're doing, or has decided they're no longer interested in Netscape or NullSoft. Is it possible both might soon be for sale? Clearly they no longer fit into the rest of the company's plans.

    Of course, it would be ridiculously amusing if AOL suddenly announced that they were switching to Gecko anyway, even though they have a license to use MSIE for free. We can dream, can't we?

    --
    $x='S24;r)>63/* h@<5+oZ)32"5cz';$me='phroggy'x$];
    $x=~y+ -xz+\0-Tx+;print$_^chop$me for split'',$x;
  3. Here's the part that interests me... Messenger by dspyder · · Score: 4, Interesting

    "The companies will explore ways for AOL and MSN Messenger to interoperate, which Microsoft has sought for years."

    Isn't that a major concession from AOL? Weren't they the ones claiming that was "impossible"/"too expensive"/"too difficult"???

    --Darren

    p.s. "Microsoft will help distribute AOL CD-ROMs to PC builders around the world." Yay! More coasters!! :)

  4. Why by Anonymous Coward · · Score: 1, Interesting

    Why doesn't AOL use THEIR gecko browser, which they've put so much money into, in their AOL versions? With such a crappy relationship with microsoft, you think they would.

  5. Re:Bah by el-spectre · · Score: 3, Interesting

    Corporations don't exist to help their customers, they exist to employ people and make stockholders money.

    In the rare occasions that corporations DO go out of their way to help the customer, it usually costs them money. In my experience, few businesses will do anything 'benevolently' if it doesn't lead to revenue. Not a lot of reason to.

    --
    "Faith: Belief without evidence in what is told by one who speaks without knowledge, of things without parallel." - A.B.
  6. nervous by Petrox · · Score: 5, Interesting

    It should make us nervous whenever companies of this size adopt a cooperative, rather than a competitive, stance towards each other. Why was this case really settled? Probably because they both were able to agree to cooperate in the future on new DRM. Caveat Emptor!

    --
    sig my booty, check my website
  7. Good Investment by birdman666 · · Score: 0, Interesting

    How much did AOL pay for Netscape? It certainly wasn't $750,000,000. Talk about a good return on an investment. Seems to be also that maybe AOL never wanted Netscape for the technology, but merely for the ability to win lawsuits against Microsoft.

    --

    Nothing from nowhere I'm no one at all
  8. Digital Rights Management by John3 · · Score: 4, Interesting

    More info about the settlement deal on the MS site. The biggest coup for MS in this deal might be the collaboration with AOL on DRM. Where does that leave Apple and Real? And the Instant Messenger portion of the deal might also turn out to be a big win for MS.

    --
    "We make our world significant by the courage of our questions and by the depth of our answers." Carl Sagan
  9. A whole different league... by powerlinekid · · Score: 4, Interesting

    For Microsoft, the $750 million payment is not exactly a significant dent in its cash hoard of more than $46 billion.

    Do you realize how much money that is? So how did this work? Microsoft use's its monopoly to establish another one in web browsers through unfair business practices (which they were because Microsoft is a monopoly) and years later just pays $750 million to make it go away.

    Essentially Microsoft just bought the browser wars . Thats a scary thought... and makes me wonder, has the US ever seen a company quite like Microsoft? Someone that expands and conquerors so easily. Someone who in a few years could hold a monopoly on 3 or more different industries. This is nuts. I doubt Standard Oil was ever this big. Maybe AT&T but even thats streching it. Hell, Microsoft even won its anti-trust case.

    This is getting kind of scary *crawls into hole*.

    --

    can't sleep slashdot will eat me
    1. Re:A whole different league... by powerlinekid · · Score: 2, Interesting

      link

      Looks like Hearst paid Mussolini to write articles and tried to pay Hitler also. Thats the first link I could find... Just do a search for Mussolini, Hitler, Hearst and payroll.
      Hearst was certainly a strange guy. His mansion in california had(has?) kangaroos living in the yard that were imported from Australia.

      --

      can't sleep slashdot will eat me
    2. Re:A whole different league... by x98chn · · Score: 2, Interesting

      Which one is scarier, again?

      Walmart: scares me more than any MS-AOL-TIME-WARNER-IBM-GM merger ever could :)

  10. Not over... by saberworks · · Score: 5, Interesting

    My girlfriends friend, who is also a girl, was having problems with her Windows computer. I went over to her house, fixed all her windows problems, and when I was making sure her cable modem worked, I opened up IE. The default home page was the cable company's home page with **5** popup windows. I asked her very politely if she liked popup windows. She of course said "hell no." I told her I could install a browser that was small, fast, and didn't accept popups. She was very, very surprised that there was such a thing. I installed MozillaFirebird and put a shortcut on her desktop called "Better Internet Browser." Her whole family now uses it.

    The browser wars will only be over when everyone agrees on what a "better browser" is.

  11. Bigger picture? by Anonymous Coward · · Score: 2, Interesting

    I've heard that Time Warner/AOL might be looking to split from their merger. Maybe Microsoft paid out the 750 million because they have plans to buy AOL.

  12. Blood Money Taints by cheesedog · · Score: 2, Interesting
    Caldera took about $350M from Microsoft in the DR-DOS settlement. Now, Caldera/SCO are using that money to fight Linux and open source.

    AOL took $750M from Microsoft in the Netscape suit. How many threatening letters to developers and users of Netscape patented technologies, perhaps even those in Mozilla, will that pay for? How quickly after AOL begins such a scheme will Microsoft donate another couple million to license that IP for use in IE?

    Is there a planet I can move to that has a constitution banning all private possession of intellectual property?

  13. The poster seems to have missed the point by Nice2Cats · · Score: 5, Interesting
    Nobody gives a rat's ass about 750 million dollars -- pocket change to Gates and Co. -- or the IE as a browser. Read the article at Inforworld and be very, very afraid: Microsoft and AOL are going to combine forces to create a "digital media environment" that is free from piracy; AOL will become a Microsoft distribution channel; their Instant Messaging systems will be combinded, and if you know a superlative for "monopoly", well, get used to using it.

    This is finally it: The beginning of the endgame between Closed and Open Source, the last battle between Good and Evil, Armageddon in the software universe. AOL is doing so bad that "AOL Time Warner" has been considering dropping them out of the mother company's name; and Microsoft for all its resources can't help but feel the penguins and daemons breathing down its neck if even places like Munich will not heel when they call. Their backs are not quite against the wall, but their bums are touching brick, and they will not go away without one hell of a fight. I think it is safe to say that this is the worst threat that Open/Free Software has ever faced, given the sheer political and financial clout these two companies have combined.

    Oh, and think of the irony that it comes at a time when Neo is in a coma and has been revealed to be not the Saviour, but the Angel of Death; when Buffy has been discontinued; and when Nanny Ogg is feeling just a wee bit under the weather...were these not omens that we failed to heed? How could we be so childish to believe these signs were just random events in popular culture...

  14. ARGH, now the Netscape story won't be told by AdamBa · · Score: 3, Interesting
    There was always a question of how much Microsoft pushed Netscape and how much they fell. Whatever Microsoft tried to do to hurt Netscape, Netscape arguably did more to themselves with bad strategic decisions. So I was hoping that this lawsuit would lead to a trial that would hash all this out in public, determining once and for all if Andreessen, Barksdale et al were geniuses or just lucky.

    But now we'll never know...

    - adam

  15. AOL make Nullsoft pull plug on "Waste". by Anonymous Coward · · Score: 1, Interesting



    It's official...

    Much in the way that AOL forced Nullsoft to pull their nascent "Gnutella" technology when it first came out, it appears AOL has once again forced Nullsoft to yank distribution of their "Waste" secure P2P-based file sharing and messaging software.

    Slashdot.org announced the product this morning, and by afternoon it is officially gone from the Nullsoft site.

    Fortunately, the Internet routes around censorship and the software is still available here (along with an interesting chat forum on the subject) and, undoubtedly, in other places around the net.

    It's likely that the source and binaries for this much-needed freedom-inducing GPLed software will be making an appearance on a freesite at some point in the not-so-distant-future.

    Yes folks, history, once again, repeats itself.
    I guess it just shows to go you, that when it comes to kick-ass software Justin Frankel is still the man!

  16. $750MM subsidy to use IE by Anonymous Coward · · Score: 1, Interesting

    This time, M$ has gone beyond giving away IE for free. They're effectively paying their only potential competitor (of note) in the browser market $750MM to stop expending resources to further develop its product.

  17. Re:What will this mean for Mozilla? by IamTheRealMike · · Score: 3, Interesting
    Good question. I've been thinking about it lately.

    I think so, yes. If you look at whos working on Mozilla lately, it becomes clear that quite a lot of the former Mozilla employees have moved on to other jobs/lives but still hack on Moz. I don't know the numbers, but looking at blogs, email addresses and so on makes it look like the Mozilla hacking community is pretty spread out these days.

    I'm not sure how much that applies to the innards of Gecko though.

  18. isn't AOL to be sold off? by zogger · · Score: 2, Interesting

    I'm not sure now, but seems like just a week or so ago I was reading that. If that happens, AOL will need all the cash and free software it can get, which is exactly what this settlement does for them, coincidentaly. Being able to still use IE will cut them a lot of development R&D slack for a long time, so I bet they won't care what label is on the browser.

    Here's a hoot of a thought, I wonder if any MAJOR ISP would consider being all free software based, and ENCOURAGE the alternatives out there, instead of defaulting to the borg? Maybe even an offshoot branded browser, moz based perhaps, for those folks who just love to be able to "insert a disk, klik hier, and get the intarweb"? maybe even an entire distro, that came with signup, had support with it? Geeks still wouldn't need it, but just maybe....

    consider, the earthredrakemoztooiannetlinux ISP/OS/browser/office/etc combo

    might help a scosh with funding of whatnot.. I know I'd sign with them.

    just a few thoughts..

  19. Re:The marketing beast and the collective... by maxpublic · · Score: 2, Interesting

    I refuse to turn this into a debate about capitalism and its alternatives (are you truly suggesting we would all be better off were we all socialists?)

    This statement might've had some merit if we actually lived in a capitalism, but we don't. America is currently far more socialist than anyone would like to admit, and our weak brand of 'capitalism' has more to do with corporate oligarchy than the free market.

    I don't see how the current American economic model is any better than the models used by Canada, Germany, or, for that matter, Sweden. I might be more inclined to be rah-rah for my country if it was actually invested in a real free market, but right now that seems to be more rhetoric and illusion than reality.

    Max

    --
    My god carries a hammer. Your god died nailed to a tree. Any questions?
  20. Flood of mozilla CDs? by 0xDEADC0DE · · Score: 5, Interesting

    How much would it cost some rich OSS supporter to burn millions of Mozilla CDs and distribute them in the mail or the malls? Highlighting the pop-up blocking would be enough for many non-geeks to switch.

    If Microsoft can pay $750M and get an advantage, maybe a player like IBM could help protect its investment in WebSphere, Java, Notes, and SameTime for 1/10 of that.

  21. Maybe you're surfing different sites than I am... by Kjella · · Score: 4, Interesting

    The browser wars are over the way that the Cold War is over. It is no longer the case of two contenders battling it out for dominance, with the consequence being that the consumer wins (since a split market means that developers would adhere to standards). Instead, one brower dominates the market, and the little browsers that "compete" with it do so by trying to keep up with its "functionality."

    ...but I'm using Opera and I think there's been one site in my last month of surfing that choked on it. I'd say the _standards_ won. I remember trying to do a website for our University with Netscape 4 as the Uni client, and it was a fucking huge PITA. No wonder so many sites (and thus people) stopped caring about anything but IE. Now, I use both Opera, Mozilla and IE and all three work very well, and I don't find it a *problem* to design something that looks good on all platforms anymore. Granted, you *can* make stuff that is IE-only, but before it happened almost automagically...

    And yes, if I'm on the local variant of pricewatch, and the webshop was $2 cheaper but it doesn't work with my browser, I say screw it. Chalk up a lost sale. Same if I'm doing a google search and has opened ten windows. One refuses to load? Too bad, let's see if the other 9 have what I want. The only reason I'd fire up IE is because your site has something special(tm). And truth be told, most aren't that special.

    Kjella

    --
    Live today, because you never know what tomorrow brings
  22. no big deal other things more troublesome. by twitter · · Score: 2, Interesting
    AOL users never had digital rights, nor do Microsoft users, but both can be set free by free software. People are turning away from M$ on the server side for security, price and performance reasons. This will provide room for free clients to continue to thrive. As long as the net is free, M$ and AOL will die. The singerny (yeah, I spelled that way on purpose) between Time/Warner/McSoft was due to come along anyway.

    The real horror will be when they bully hardware makers into DRM so that there are no free hardware platforms left. Free software can replace M$ garbage, but a gimped bios and bad laws can defeat that. My nightmare is pinging, DRM bios and the DMCA.

    --

    Friends don't help friends install M$ junk.

  23. Re:I wouldn't go so far as to call it "innovative" by TheZax · · Score: 1, Interesting


    Spell-checking in textareas. No tpyos in this post!

    That's funny. I thought that was a real mistake at first.

    ..that was a joke, right??

    --

    JWall: GUI client for IPTables
  24. Re:I wouldn't go so far as to call it "innovative" by wfrp01 · · Score: 2, Interesting

    Since browsing technology has likely reached it's apex, all that's left are the small things.

    Microsoft didn't give AOL a billion dollars (well, they didn't actually give them jack shit if AOL is so stupid as to assign value to the "right" to use MS's browser, but that's another topic) for nothing.

    People want to deploy distrubuted multi-user applications. How? This is the big money bag. MS will lose a lot more than their shirt if people start deploying applications to XPFE.

    This is not an original thought. MS want to squish this bug badly.

    --

    --Lawrence Lessig for Congress!
  25. Re:Maybe you're surfing different sites than I am. by CaptainZapp · · Score: 3, Interesting
    And yes, if I'm on the local variant of pricewatch, and the webshop was $2 cheaper but it doesn't work with my browser, I say screw it. Chalk up a lost sale. Same if I'm doing a google search and has opened ten windows. One refuses to load? Too bad, let's see if the other 9 have what I want. The only reason I'd fire up IE is because your site has something special(tm). And truth be told, most aren't that special.

    That's actually the very reason why I don't order from B&N any more. It chokes on Mozilla when you get to the checkout and all I ever got was a canned "your business is very important to us" response.

    Yeah, I might be a stubborn son of a bitch, but if your business doesn't support standards I'm more then happy yo take it somewhere else.

    --
    ich bin der musikant

    mit taschenrechner in der hand

    kraftwerk