The inability to sell other products that depended on Navigator's popularity, such as an e-mail program and software to run Web servers, might increase the actual damages to as much as US$3 billion, he estimated. Tripled, the damages would reach US$9 billion.
Analysts say AOL's primary goal is to get tougher restrictions on Microsoft's business practices to curb the software giant's ability to dominate Internet services.
AOL's 19-page complaint says "Microsoft has continued to engage in activities already adjudicated as illegal and has undertaken further anti-competitive acts that now call for redress as well." The operator of America Online, the world's largest online service, didn't specify which Microsoft business practices continue to violate antitrust law. AOL has accused Microsoft of using XP, the latest version of Windows, to try to control instant messaging and other Internet services.
AOL Time Warner filed its lawsuit while US District Judge Colleen Kollar-Kotelly is reviewing the proposed settlement among Microsoft, the US Justice Department and nine states. She has scheduled hearings to begin March 11 on proposals for tougher remedies by nine holdout states. AOL Time Warner asked that its case be assigned to Kollar-Kotelly as a related matter.
"This is about one of a number of moves to reopen the whole Microsoft settlement and not let Microsoft settle this quickly or easily," said Bill Whyman, president of the Precursor Group, a Washington investment research company.
Microsoft spokesman Vivek Varma accused AOL of "attempting to use this legal tactic to undermine the settlement." AOL said the aims of its lawsuit are "entirely consistent" with the efforts of the holdout states to get tougher remedies.
Critics of the settlement have until Tuesday to submit comments on the proposed settlement. The American Antitrust Institute, a Washington-based advocacy group that called the settlement a "failed remedy," says it will ask the judge to force the Justice Department and Microsoft to make more disclosures about the agreement.
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