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Technology Stocks : How high will Microsoft fly?
MSFT 492.01+1.3%Nov 28 9:30 AM EST
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To: Dwight E. Karlsen who wrote (8130)5/28/1998 11:50:00 PM
From: Hal Rubel  Read Replies (2) of 74651
 
Monopoly

RE"I find it odd that Gateway hasn't come clean and acknowledged what the exact terms of past contracts have been. I am opposed to exclusive contracts with OEMs, simply because it limits the choice for consumers as to what they would like to have preloaded."

Interesting to me too:
Dwight, its not odd to the DOJ. They have contended that Microsoft's ability to pressure box makers into signing contracts with such strong non-disclosure clauses is in itself evidence of monopoly power and of its abusive exercise. This very issue will apparently be part of the suits.

Even the DOJ has not been able to see most of these documents, so far. The box makers are apparently obligated under these contracts with Microsoft to put up a legal defense against regulators to insure non-disclosure. A half or faint hearted defense by any one of the box makers could be damaging by opening the doors to all other box maker's contracts thus exposing previously secret Microsoft business practices to direct public scrutiny.

HR

PS: Some box makers seem to be starting to break from the Microsoft front. Gateway may be a weak link here. Though I do not think they have turned over contractual materials to the DOJ, as yet. I believe they have verbally described them to regulators in such detail that the DOJ can now subpoena them. This conveniently gets the boxmaker off the legal hook with Microsoft by over riding the non-disclosure terms of the contracts.
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