"Hatch says he will hold new Microsoft hearings"
By David Lawsky
WASHINGTON, June 26 (Reuters) - Senate Judiciary Chairman
Orrin Hatch announced Friday that he will conduct more hearings
on Microsoft Corp. , which he charged has "been less
than 100 percent forthright and candid" with his committee.
The Utah Republican conducted highly publicized hearings
with Microsoft CEO Bill Gates and others in early March. But he
said there was more work to be done.
"I plan to hold further hearings on competition in the
digital age," Hatch said in a Senate floor speech. He said the
dates and witnesses would be announced later.
A spokeswoman for Sen. Slade Gorton, a Washington
Republican, said new hearings amounted to an attempt to "stifle
the creativity" of Microsoft.
Hatch also charged Microsoft with "hubris" for lobbying to
cut appropriations to the Justice Department's antitrust
division.
A Microsoft spokesman said the company was aware that
several senators were concerned about appropriations to the
antitrust division, but had not been involved in the issue.
"I trust that my colleagues in this chamber would have
little difficulty in seeing this as anything but an effort to
interfere with an ongoing law enforcement action," Hatch said.
The Justice Department sued Microsoft this spring for competing
unfairly.
A Senate subcommittee this week approved raising the
Justice Department antitrust division's budget from $94 million
to more than $98 million for the next fiscal year.
Hatch also said that Microsoft has played "hide the ball."
As an example, Hatch said that Microsoft imposed restrictive
contracts on Internet firms.
"Rather than admit that they have indeed imposed such
terms, and explain to us why we should not find them
objectionable, Microsoft has consistently sought to avoid the
existence and implications of these contract terms," he said.
Hatch said that he was told on the eve of his Microsoft
hearing the company would no longer enforce the terms, but
found out later that Microsoft has in fact continued to enforce
such contracts with online providers America Online and
CompuServe.
A Microsoft spokesman said Hatch's comments were "very
unfortunate and inaccurate. Microsoft has repeatedly explained
that our cross-promotion agreements with Internet service
providers and content companies are completely commonplace and
fully legal."
The agreements provide that the Internet providers will
promote the Internet Explorer Web browser and Microsoft will
promote the service providers on its desktop.
A spokeswoman for Sen. Gorton said the hearings are now
unnecessary. She noted that a U.S. Circuit Court of Appeals
three-judge panel for the District of Columbia Circuit had
ruled broadly against the Justice Department this week.
"We would like to call attention to the court ruling this
week in which Microsoft's business practices were upheld,
holding that Microsoft integration is good for consumers," said
Cynthia Bergman.
Bergman said that "any and all government intervention,
investigations or committee hearings are just other attempts to
stifle the creativity of this company." |
