Has Microsoft Met Its Match?

In the heavyweight slugfest between AOL Time Warner Inc. (AOL ) and Microsoft Corp. (MSFT ), AOL usually gives as good as it gets. The one exception: Web browsers. AOL's Netscape browser is used by 21.4% of home users, while 89% use Microsoft's Internet Explorer. But what AOL hasn't won in the marketplace, it's trying to win in the courts. Piling on top of the Microsoft case being pressed by nine state attorneys general, AOL on Jan. 22 filed its own Microsoft antitrust action.

While AOL stands to gain from a court ruling that could bring billions of dollars in damages, it takes on risks as well. In court, Microsoft could turn the tables and accuse AOL of antitrust behavior. And, even if AOL wins, its declaration of war against Microsoft could provoke the software powerhouse to battle AOL even more ferociously.