SEATTLE (AP) - Still battling a federal judge's order to break up the company
over antitrust violations, Microsoft Corp. is now under investigation for
possible anticompetitive behavior stemming from its stake in a rival software
manufacturer.
Federal antitrust investigators are looking into whether Microsoft's investment
in Corel Corp. reduces competition in the market for word processing and
spreadsheet applications.
While sales of Corel's office software are minuscule compared to Microsoft's 90
percent market share, the Ottawa-based company is viewed as a critical
counterbalance to the Redmond, Wash.-based behemoth. Corel makes WordPerfect
and other software for the competing Linux operating system, an open-source
platform that competes with Microsoft Windows.
The investigation of the two companies' relationship, which began three weeks
ago, was confirmed Wednesday both by the Justice Department and by Microsoft.
``We're looking at the transaction'' in which Microsoft invested $135 million
in Corel last October, said Justice spokeswoman Gina Talamona. She said it was
a merger investigation ``to look at the competitive effects of the
transaction.''
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