Netscape is seeking to exploit the findings of the federal and appeal courts in the high profile Justice Department case which found that Microsoft's behaviour violated antitrust laws and had harmed Netscape.
The lawsuit alleges that, beginning in 1995, Microsoft harmed Netscape in a series of illegal acts aimed at promoting Microsoft's Internet Explorer browser at the expense of Netscape Navigator, marketing battles that became known as the "browser wars". The suit seeks injunctive relief sufficient to prevent further antitrust injury to Netscape, and an award of treble damages to be determined at trial. America Online acquired Netscape Communications for $4.2 billion in 1999.
In a statement, Randall Boe, America Online's lawyer, said:
"Netscape's lawsuit is a logical extension of the findings entered by the District Court and unanimously affirmed by the Court of Appeals that Microsoft thwarted competition, violated the antitrust laws and illegally preserved its monopoly at Netscape's expense.
"There is no question that Microsoft's conduct violated the law and harmed competition and consumers. Netscape's lawsuit seeks not only an award of damages, but for the Court to provide injunctive relief that will help restore competition on the computer desktop. We support the efforts and goals of the non-settling state attorneys general who continue to seek appropriate remedies to end Microsoft's anti-competitive conduct and illegal activities. The aims of Netscape's lawsuit are entirely consistent with their efforts."
In ruling on the Justice Department's action against Microsoft, the Court of Appeals stated that, "Microsoft undertook a number of anti-competitive actions that seriously reduced the distribution of Navigator." It added that these actions "have a significant effect in preserving [Microsoft's] monopoly; they help keep usage of Navigator below the critical level necessary for Navigator or any other rival to pose a real threat to Microsoft's monopoly."
The Netscape lawsuit alleges that Microsoft's illegal actions:
"resulted in harm to competition and antitrust injury to Netscape in particular. Netscape was seriously damaged by Microsoft's illegal conduct in at least the following ways: it lost browser licensing revenues; it lost browser market share that would have led to other significant sources of revenues, including portal revenues and revenues from its enterprise software and products businesses; its marketing and distribution costs were significantly increased; it lost goodwill and going concern value; and it lost the profits that would have existed if Microsoft had not acted illegally to prevent Netscape's browser technology from providing a competitive alternative to Microsoft's monopoly operating system as a development platform."