Washington — AOL Time Warner sued Microsoft in federal court Tuesday seeking damages for harm done to AOL's Netscape Internet browser, which had ruled computer desktops until Microsoft began giving its competing browser away.
Many of Microsoft's business practices, including ones in which the company encouraged computer manufacturers and Internet providers to distribute its Web browser instead of Netscape, were found to be anticompetitive by a federal appeals court last year. AOL, which bought Netscape in 1999, wants Microsoft to cease its contested business practices and pay damages.
AOL executive John Buckley noted that court ruling and said, "This action is an attempt to get justice in this matter."
Microsoft spokesman Vivek Varma said AOL was trying to compete in the courts rather than the marketplace.
"We don't think this lawsuit has anything to do with consumers," Varma said. "AOL has been using the political and legal system to compete against Microsoft for several years. This is just the next legal tactic in their business plans."
AOL filed the lawsuit in the U.S. District Court for the District of Columbia. Under federal law, AOL would be entitled to triple any actual damages found by the court.
The company also asked for an immediate injunction against "ongoing and further damage" involving the Netscape Navigator browser, Buckley said.
One possible option, if a judge ruled in favor of AOL, would be to force Microsoft to sell a stripped-down version of its Windows operating system so computer manufacturers could choose which Internet browser to offer.
That also has been requested by nine state attorneys general suing Microsoft in federal court.
Shares of AOL were down $1.18, or 3.9 percent, to $28.80 in trading on the New York Stock Exchange, but gained back 14 cents in extended trading. Shares of Microsoft were down $1.64, or 2.4 percent, to $64.46 on the Nasdaq Stock Exchange, before gaining 2 cents in extended trading.
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