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Netscape, not IE, put on new CompuServe

Jim Hu CNet

Published: 16 Apr 2002 17:22 BST

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America Online on Tuesday fired the first shot in what may signal the rekindling of the Web browser wars against Microsoft.

The Internet giant launched CompuServe 7.0 with Netscape bundled as its default browser. CompuServe, AOL's other online service, previously used Microsoft's Internet Explorer as its default browser, and AOL itself continues to use IE.

"We're backing the product because we think it's a good one and we want to put it in users' hands, and CompuServe is a good place to get it out there," AOL spokesman Josh Danson said.

However, the decision for CompuServe to embrace Netscape, also an AOL subsidiary, could further divide AOL's tenuous partnership with Microsoft. For years, the two companies existed in an amicable quid-pro-quo arrangement where AOL would use IE as its default in exchange for Microsoft bundling AOL into its Windows operating system. Last summer, that arrangement dissolved, sending the tech rivals back to their respective corners.

As Microsoft continues to weave Internet applications more tightly into its ubiquitous operating system, AOL has also taken steps to favour its own products. Nearly a year ago, AOL began testing versions of CompuServe that use Gecko, the underlying browser technology browser engine developed by open-source movement Mozilla.org and Netscape. Although AOL has not stated grand intentions for Gecko, the technology is being tested in experimental versions of the flagship AOL service.

Although AOL said in a statement on Tuesday that the upgrade was sparked by consumer feedback, some analysts wonder if there are more political reasons behind the move.

"The question is, are they doing it mostly for negotiating purposes or are they really going to roll it out," David Smith, an analyst for Gartner Group, said in reference to Netscape.

Indeed, the decision seems contradictory to AOL's actions. AOL Time Warner, AOL's parent company, filed suit against Microsoft earlier this year on behalf of Netscape, claiming the software giant's unfair business practices resulted in the browser's demise. Should AOL decide to bundle Netscape, Microsoft could argue that AOL poses a competitive threat in bundling its browser to its 34 million members.

For now, CompuServe's use of Netscape will act as a trial balloon. CompuServe, with its three million subscribers, remains a dwarf compared with AOL.

"It doesn't surprise me that AOL wants a test bed to see how users react and to iron out any rough spots so if they decide to go to a grander scale they can avoid the initial pitfalls on CompuServe," said Ken Smiley, an analyst at Giga Information Group.


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