The internet's "browser wars" between the mighty Microsoft's Internet Explorer and the once-triumphant Netscape (now owned by AOL Time Warner) are now officially over. This follows Microsoft's payment of $750m to AOL - small change for Bill Gates - to settle outstanding litigation. Since AOL will get Explorer free for seven years it is presumed that Netscape will wither away leaving Microsoft's 90% market share in browsers strengthened further. This is the end of an era. The question is does it matter?

The dotcom boom started in August 1995 when Netscape - developer of the first full-fledged browser - was floated on the US markets valuing it at a mind-boggling $2.7bn. Since sales were only $16.6m in the half-year, this set the pace for the barmy overvaluations of the dotcom era. Netscape then boasted an 80% market share that frightened Microsoft into launching its own browser to protect its dominant position in personal computer software. Microsoft exploited its 90%-plus monopoly of the PC operating system by "bundling" Explorer into it. The US courts found that Microsoft's dominance, while not illegally acquired, was illegally maintained by methods like strong-arming computer manufacturers to make Explorer the "default" browser when you switched on.

Arch rival AOL responded to Microsoft's dominance by buying Netscape for $9bn (in shares), one of the biggest overpayments ever. Having done that, AOL failed to invest on a scale to threaten Microsoft, which can now add its 90%-plus monopoly in browsers to its 90%-95% monopoly of PC operating systems and Excel and Word office software. There are some smaller browsers but none with the clout to challenge Microsoft. For anyone who believes in the benefits of competition this is a really bad development even though Explorer itself is popular. Microsoft has become one of the few private sector monopolies to discover the secret of longevity.