AOL's Gecko tests signal the latest salvo in an ongoing battle between two technology giants vying for domination of the Internet. AOL has the largest Internet audience, and switching to its own browser could greatly affect how those people view the Web. Most browsers do not generate any direct revenue, but they can influence where Web surfers go and what applications they use. Microsoft and AOL have theoretically squared off in the browser market since AOL announced in November 1998 that it would acquire Netscape for $4.2bn. But AOL had until recently avoided a direct confrontation, sticking to a long-term deal that made IE its default browser in exchange for distribution of its software in new versions of Microsoft's Windows operating system. The relationship has increasingly shown signs of wear. Last summer, the two companies tangled over terms for bundling AOL into Microsoft's Windows XP operating system. Talks dissolved after the two companies could not agree on terms of the deal. AOL has also raised concerns over Microsoft's dominance in the browser business. In October, Web users noticed that people trying to access MSN.com through alternative browsers such as Opera, Mozilla and some forms of Netscape were locked out of the site. Things heated up again in December when Netscape sued Microsoft in civil court, alleging the software giant's business practices unfairly crushed its business. In recent years, Netscape has seen its market share dwindle to about 10 percent, damaged partly by Microsoft's aggressive competition but also because of its own missteps. In a bid to combat Microsoft's growing lead, the company released its code to the open-source community in March 1998, creating the Mozilla project. But the effort has been widely viewed as a disappointment, having produced no official release after years in development. The group released its most recent upgrade last week, and it expects to have its first official version shortly. In the meantime, however, Netscape has suffered with what many have viewed as an inferior product. Netscape 6.0, built on beta Mozilla code, was not received well, although upgrades have fared better. AOL's Netscape trials suggest that the company now believes the browser has improved sufficiently to take on its old rival.
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