Why didn't the feds step in and do something about it? Because the people in the federal government were thinking about the 1920s and not the software industry of the 1980s. They didn't have a clue what was going on because the congress persons and the senate persons were mostly lawyers with ZERO percent of them being able to tell you what software was, how it was made, that hooks were used to connect to operating systems and depending on the versions of the hooks that were given how big of an advantage it gave Microsoft internally vs the rest of the industry.
Your software didn't need to be anywhere near as good as someone else's when it was as lot faster. And while the rest of the industry was programming with hooks into Windows that were like anchors slowing their software down, Microsoft was able to use those exact seconds, minutes, hours, days, weeks, months and then years to improve their products because they weren't hampered with the anchors the rest of the industry was working with.
THAT is why MS Office became popular. NOT because everyone else's products were less good or less capable. They were SLOWER and when most people use 2% of the capabilities of the software they are using and Microsoft was able to make that 2% people used, faster than the competition, well what do you EXPECT to happen?
To give a car example, imagine racing against an F1 team where you had to use bias ply tires vs a team that controlled what tires you could use, when tenths of a second is EVERYTHING in F1, imagine you having a car that is significantly better with every other part of your car except for you being stuck with tires that causes you to have to break much earlier and will spin out if you apply all of your throttle or as much throttle as the team that determines what tires YOU get to use vs THEM. And then who wins the race? The team that controls what tires everyone is allowed to use while THEY get to use any tires they want to.
Fair? No! Would it be allowed in F1 or any other racing organization? It's not about cheating the rules. It's about who controls the rules. And if any team controlled the rules for everyone else while not being tied to those same rules, well it is very obvious as to which team would win the races.
Now add infighting in teams where the team that makes the suspension makes the most on a team but if another group on the team like the team in charge of the braking systems on the car, was able to add anti-slip and ABS and suddenly that team would be moving up in the standings and because of that the owners might start funneling more of the money through THAT team, well maybe the person in charge of the suspension is married to the daughter of the owners and they work it so that the daughter talks the father into not giving more money to the team in charge of the brakes and whether or not the race car has ABS.
I mean, who cares if you are going to be either 16th or 17th in the standings it won't really affect how much money any part of the team gets. And the owner's profits with the race team is a rounding error vs what they are making with the company that they are running which gives them the money to have a race team as a side project for fun. That is what the office and operating system teams were to IBM back then. And when the people in charge of the mainframe (hardware and software) is worried that more money might be going to the PC software teams if they start being successful in getting more people to buy their software, well the mainframe team didn't want that so they too were fighting against the teams in charge of the Lotus smart suite and the OS/2 team.
It wasn't that Lotus 1-2-3 wasn't as good as Excel in the early years of Windows. It wasn't that OS/2 (which started out as a collaboration of not just IBM and Microsoft but over 15 companies were involved, IBM and Microsoft were just the biggest teams that were involved) wasn't as good as Windows 3.1 because it was SIGNIFICANTLY BETTER because DOS and Win 3.1 software was more stable running in DOS and Win 3.1 sessions on OS/2 than native DOS or native Win 3.1).
I know because I focused on focused on the people that were having the most problems with ANY software they were running. And from my own experience I KNEW that software was more stable on OS/2. So I took a computer and installed OS/2 on it and then installed the software that people were having problems with and told them it was a special version of Windows. And I had them use it and they had SIGNIFICANTLY less problems. AND it ran faster on OS/2 than it did on native DOS or native Win 3.1.
If IBM had run ads showing two exact same computers running the exact same software on DOS or Win 3.1 vs running them with OS/2 with the speed difference, instead of running idiotic ads of nuns walking down a hallway speaking Italian which only people that knew OS/2 had a clue what was OS/2 was when seeing those ads.