Here's another more detailed story on Sanders' and Gates' "Agreement".
Howard Gutman, an attorney for the states, told U.S. District Judge Colleen Kollar-Kotelly that Sanders asked Microsoft to announce support for its chip technology, codenamed Hammer, ahead of a competing product just being developed at Intel Corp.
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Reuters Internet Report
Microsoft Witness Asked Gates for a Favor
By Peter Kaplan
WASHINGTON (Reuters) - Microsoft Corp.'s (NasdaqNM:MSFT - news) first witness against antitrust sanctions sought by nine states admitted in court on Tuesday that he asked for a favor when Microsoft Chairman Bill Gates called seeking his testimony.
Jerry Sanders, chief executive of computer chip-maker Advanced Micro Devices Inc. (NYSE:AMD - news), also conceded he had not read the states' proposed sanctions, but that Gates had told him they were ``crazy'' and would fragment the Windows operating system.
Howard Gutman, an attorney for the states, told U.S. District Judge Colleen Kollar-Kotelly that Sanders asked Microsoft to announce support for its chip technology, codenamed Hammer, ahead of a competing product just being developed at Intel Corp. (NasdaqNM:INTC - news)
``Mr. Gates said he would talk to his people about that,'' Gutman said of the Feb. 8 call by Gates to Sanders.
``Yes,'' agreed Sanders. ``I asked Mr. Gates to hold Intel to the same standard he held us to.''
Sanders' testimony was Microsoft's opening response to more than four weeks of witnesses testifying for the states, who are seeking stiffer sanctions against Microsoft for illegally maintaining its Windows monopoly.
The exchange was reminiscent of efforts by Microsoft lawyers to discredit the motives of industry executives testifying on behalf of the nine states that have rejected a proposed settlement of the case.
``You've never checked to this day whether what Mr. Gates told you... was true in the remedies,'' Gutman challenged. Sanders agreed he had not read the states' proposals.
AMD is the second-largest producer of microprocessors that form the brains of personal computers after Intel.
Sanders said in written testimony that fragmenting the Windows operating system would set the computer industry back almost 20 years.
A key demand of the states is for Microsoft to produce a stripped-down version of Windows that can be customized by computer manufacturers and competing software designers.
VERSIONS OF WINDOWS
Sanders said multiple versions of Windows would diminish competition as designers of software and devices that work with computers focused on just one of the versions.
``Any relief that would fragment the Microsoft Windows platform, and thereby impair the large compatibility benefits provided by that platform, would set the computer industry back almost 20 years, all at tremendous cost to consumers and to the national economy,'' Sanders said.
Twenty years ago hardware and software vendors had to choose whether to develop for incompatible desktop computers from Apple Computer Inc. (NasdaqNM:AAPL - news), Commodore, Tandy and other suppliers, Sanders said.
The states have rejected a proposed settlement of the four-year-old landmark antitrust suit reached between Microsoft and the Justice Department in November.
The settlement, also being considered by Kollar-Kotelly, aims to give computer makers greater freedom to feature non-Microsoft software on the opening computer screen.
But the states still pursuing the case want Microsoft to make some Windows functions removable rather than just hide consumer access. They also seek more disclosure of Windows' inner workings and a giveaway of the source code for Microsoft's Internet Explorer browser.
RELIANCE ON MICROSOFT
A parade of witnesses for the states has testified over past weeks that Microsoft's operating systems dominance allows it to hold tremendous sway over the computer industry.
Some of Sanders' written testimony supported this impression. He said AMD depends on Microsoft operating system support for its chips and licensing of the Windows logo for marketing purposes.
``If we fail to retain the support and certifications of Microsoft, our ability to market our processors could be materially adversely affected,'' Sanders said, quoting from AMD's annual report.
The remedy hearings are expected to run through May at their current pace.
Microsoft has asked Kollar-Kotelly to dismiss the states' demands on grounds ranging from failure to make their case to the states' lacking standing now that the federal government has agreed to settle.
But the judge has so far been inclined to let the states air their arguments, even allowing testimony on new computer technologies that were not considered in the original case launched four years ago.
The Justice Department on Monday backed the states' right to press ahead on their own in seeking stronger remedies against Microsoft. But at the same time it warned Kollar-Kotelly that the states' proposals could harm consumers and retard competition.
Microsoft's list of 30 possible witnesses includes Gates and chief executive Steve Ballmer, but it is not clear when those senior executives might be called.
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