As many of you may have already read elsewhere, The Justice Department's not the only faction of the federal government that's breathing down Microsoft's back. In addition to the ongoing Redmond Justice drama, it appears that the software giant's also going to have to continue to contend with Orrin Hatch and his Senate Judiciary Committee, who, after its original hearing on competition in the software industry earlier this month, appears unsatisfied that all is as it should be. All the juicy details are in a CNET article.

So Senator Hatch has sent a letter to Bill Gates informing him that the SJC's investigation will continue, and it would in fact be extended to include any antitrust practices that may have been used in the creation and selling of Windows 98, due out next month. Hatch indicates that he's "interested in Microsoft's relationship" with OEM's and web content providers who get special "platinum" status in the channel bar. The letter also requests-- and here's the kicker-- that Microsoft effectively release their partners and licensees from their nondisclosure agreements when discussing these issues with the SJC. That "requested" letter has a due date of April 6th. Similar requests were sent to Netscape and Sun, and at least Netscape has indicated that they're only too happy to comply with the instructions.

Microsoft, on the other hand, is not so quick to agree. A Microsoft spokesman said that the company is "adamant about the need to protect [their] trade secrets and confidential information." They may not have a choice, though, as a former FTC commissioner states that the letter to Microsoft contains an implied threat of a subpoena if the request isn't fulfilled. Either way, it seems that things could get very, very interesting soon...

Bad news for graphics giant Adobe, who reported their first quarter financial results and revealed a fairly massive 43% drop in profits. And though it's still a profit instead of a loss, some people are taking the news to be a foreshadowing of things to come, as well as an indication that the Mac continues to struggle as a platform. Among the reasons given for the decline was a "dip in Mac revenue," according to a MacWEEK article.

Okay, so income from Mac sales dropped 36%, while Windows revenues were up 18%. Personally, we at AtAT don't see what all the fuss is about. To us, it reflects that more Windows boxes are being used for graphics work, while the graphics Macs out there already have all the Adobe software they need installed and running. That doesn't necessarily translate into a decline in Mac use in the industry. Heck, Adobe's CEO John Warnock himself admits that the drop in Mac revenue was to be expected, since Adobe made no major product releases this past quarter, so there was nothing for the installed base of users to buy. (That makes us wonder about how long Adobe can continue by releasing upgrade after upgrade, and how long customers will keep paying for those upgrades, but that's a whole 'nother story.) Things should pick up again as Adobe releases Premiere 5.0, Photoshop 5.0, and whatever this thing is that they're working on to replace Pagemaker.

Off the topic, but we were just wondering; is it just us, or does anyone else out there think of "the little car that's made out of clay" every time you hear the company name "Adobe?"

Everyone who still lends any credence to the rumors that "Rhapsody is dead" should definitely take a look at these notes from a recent Bay Area NeXT Group meeting. Apple reps apparently managed to turn what was supposed to be a demonstration of Java integration into Rhapsody into a feel-good love-in that left everyone confident and upbeat about the future of both Apple and Rhapsody. And Steve Jobs wasn't even present with his Reality Distortion Field.

The technical revelations are very interesting. In addition to the Java info that will be of most interest to the propeller-head crowd, there were more than a few tidbits that should be noteworthy to the average Mac user. For one thing, Apple confirms once again that as of this summer, Rhapsody "Yellow Box" applications will run on the Mac OS, which heavily implies that the Mac OS is indeed going to receive a major guts-level overhaul, probably with the Mach kernel at its core, bringing true protected memory and pre-emptive scheduling to Apple's bread-and-butter operating system. Java in both the Mac OS and Rhapsody will indeed be 100%-Java compliant, and not a bastardized Microsoft version, though Apple's Java will also support Microsoft extensions as per last August's agreement. (Interestingly, it appears that Microsoft "wants out" of the Java virtual machine business. Hmm.) Apple also verifies that the Quicktime Media Layer is "fully integrated" into Rhapsody, ColorSync is coming, and Applescript will be "100% supported--" all of which is music to our ears.

Perhaps even more relevant, though, is the touchy-feely sense of community and morale that shines through the report. Instead of revealing a demoralized Apple, the meeting showed that at least the Rhapsody team was upbeat, well-staffed, well-funded, and ready to change the world. Whodathunkit?