News from the Dow Jones News Wires......
=Netscape CEO Confirms Details of Key 1995 Microsoft Meeting
By Mark Boslet
WASHINGTON (Dow Jones)--Testimony from Netscape Communications Corp. (NSCP) Chief Executive James Barksdale confirms details of a key June 1995 meeting when Microsoft Corp. (MSFT) allegedly suggested dividing the browser market.
Barksdale's testimony, released by the Justice Department late Monday before his expected appearance Tuesday at the Microsoft antitrust trial, claims Microsoft proposed a "line" be drawn between where the two companies would compete.
Microsoft made it clear Netscape should not develop a browser for its flagship operating system software Windows 95, the testimony states.
Instead, Netscape should build products to run on top of Windows 95 and the browser Microsoft planned to develop, Barksdale said.
Internet startup Netscape also would be able to develop products for other operating systems as long as it not try to compete with Microsoft's Windows 95 browser, the testimony states.
At the meeting, Microsoft was represented by Dan Rosen and six other Microsoft officials, while Barksdale, Mike Homer and Marc Andreessen represented Netscape.
When Netscape refused terms of the market division - which the Justice Department claims would have been illegal - Microsoft undertook a campaign using exclusionary contracts to undermine Netscape and promote its own browser, Explorer, Barksdale said.
Those contracts included, on occasion, paying Internet service providers per-subscriber fees or marketing expenses, the testimony states. In one contract proposal, Microsoft offered to pay Bell Atlantic Corp. (BEL) $15 to $45 for each Explorer signup, the document states.
Netscape had over 1,000 browser distribution contracts with service providers in 1995 and early 1996, Barksdale said. Today, virtually none of the contracts remain in effect as negotiated, he said.
A statement from Microsoft disputes the testimony as "nothing more than self-serving accusations with no factual basis."
Microsoft has never attempted to divide any market in violation of America's antitrust laws, and the evidence will show the government allegations to the contrary are false, the statement said.
Microsoft also said it didn't threaten to cancel a Windows licensing agreement with computer maker Compaq Computer Corp. (CPQ) if Compaq put Netscape's Navigator browser on its machines. The situation may have involved an attempt by Netscape to force Compaq to
remove features from the Windows operating system as part of a Navigator license agreement, the statement said.
-By Mark Boslet; 202 862-9285
(END) DOW JONES NEWS 10-19-98
08:17 PM
regards
Giota |
