When Netscape Almost Destroyed Microsoft

Here is the story of the browser wars, essentially the OS of the World Wide Web (WWW). The browser is the fundamental piece of software that made the Web take off and become the platform it is today. While WordPress runs one in three websites today, WordPress would not exist if it wasn’t for the browser. So here is a little history regarding the browser wars and the birth of the WWW.

In 1989, Microsoft formed an alliance with IBM for their joint OS/2 project, an operating system that was meant to succeed MS-DOS. However, differences in vision and strategy eventually caused the collaboration to deteriorate, leading Microsoft to focus on its own operating system, Windows. This divergence laid the groundwork for Microsoft’s dominance in the PC software market.

By the mid-1990s, Microsoft had established itself as a leader with Windows 95, but the rise of the internet brought new challenges. One of the most prominent was the browser wars, as companies vied for control over how users accessed the web. At the time, Netscape Navigator, developed by the innovative company Netscape Communications, dominated the browser market. Netscape’s browser was not just a tool for browsing the web; it was also a platform for running web-based applications, threatening Microsoft’s operating system monopoly.

Microsoft responded by bundling its own browser, Internet Explorer, directly into Windows 95, effectively making it the default browser for millions of users. This strategic move suppressed Netscape’s market share, as many users opted for the pre-installed browser rather than downloading Netscape Navigator. Critics accused Microsoft of using its dominant position in the operating system market to stifle competition in the browser market.

This led to the landmark United States v. Microsoft Corp. antitrust case in 1998. The U.S. Department of Justice, along with 20 state attorneys general, accused Microsoft of engaging in anti-competitive practices, such as tying Internet Explorer to Windows, to maintain its monopoly and crush competitors like Netscape. The trial revealed internal communications and strategies that highlighted Microsoft’s aggressive tactics.

The media followed the case closely, framing it as a battle for the future of the internet. While Microsoft ultimately avoided being broken up, the case resulted in significant legal and regulatory scrutiny. Meanwhile, Netscape, unable to compete with Microsoft’s aggressive bundling strategy, saw its influence wane. The company was eventually acquired by AOL in 1999, and its browser lost relevance in the early 2000s.

Despite Netscape’s decline, its vision of a web-centric future paved the way for many technologies we use today, including the rise of web applications and open standards. The Mozilla Foundation, formed with Netscape’s open-source codebase, gave rise to the Firefox browser, which carried forward some of Netscape’s ideals.

The following video explores this intense battle for browser supremacy, the consequences of Microsoft’s monopolistic practices, and how Netscape’s pioneering vision for the internet continues to shape the digital world today.