Feds Probe Microsoft Stake In Corel

Federal antitrust investigators are reportedly looking into an alliance between software makers Microsoft Corp. and the Corel Corp. to determine whether the relationship reduces competition.

The investigation began in January as Microsoft and federal prosecutors prepared for company's appeal of a federal court decision that the software giant had violated antitrust laws, The Wall Street Journal reported Wednesday.

In a subpoena served three weeks ago, the Justice Department demanded all of Microsoft's internal documents regarding the company's $135 million investment in Corel last October.

Prosecutors are investigating whether Microsoft's share in Corel reduces competition in the market for office software packages, a market Microsoft already dominates.

Corel's WordPerfect Office software is important for competition as it is also available in a version based on Linux, a computer operating system that competes with Microsoft's Windows program.

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