Anyone else think Intel's testimony might be the most damaging to Microsoft? Microsoft might be getting a nice slap on the wrist... joey
DOJ Says Microsoft Bullied Intel (11/09/98 1:50 p.m. ET) By Darryl K. Taft, Computer Reseller News
Microsoft strong-armed not only competitors, but also Intel, its biggest ally, according to testimony Monday in the Microsoft antitrust case.
Intel vice president Steven McGeady, appearing under subpoena, said Microsoft chairman Bill Gates got very upset at Intel's software investment, "became enraged" over work Intel engineers did in the company's Internet Architecture Laboratory, and even asked Intel chairman Andy Grove to shut the lab, according to an Aug. 2, 1995, memo from McGeady.
The lab remained open, and Microsoft later unveiled support for Digital Equipment's Alpha processor, a rival to Intel's chips.
McGeady also described an October 1995 meeting in which Santa Clara, Calif.-based Intel and the Redmond, Wash., software giant discussed Internet road maps and at which Microsoft vice president Paul Maritz made some "very colorful statements that stand out in my memory."
At the meeting, Maritz talked of Microsoft's plan to "cut off Netscape's air supply" by giving browsers away, and that Microsoft planned to take the HTML standard to the point where it would become incompatible with Netscape's browser. That effort later became DHTML .
Government attorney David Boies asked if Gates made himself clear when he talked about Microsoft's not being prepared to support a new generation of Intel processors, the MMX and P-7 chips. McGeady said it was clear if Microsoft was not supportive, those chips "would be useless in the marketplace."
"The threat was credible and very terrifying," McGeady said.
Microsoft also was angered by Intel's Native Signal Processing effort, which it viewed as encroaching on its territory, McGeady said. At the Microsoft WinHec conference of 1995, Microsoft's eyes were opened regarding the scope of NSP.
"They are upset with us being in 'their' OS space," wrote Gerald Holzhammer, an Intel Internet Architecture Laboratory staffer at the time.
McGeady testified that Gates "hated" the NSP initiative and wanted Intel to kill it, which Intel did. McGeady said he was unaware at the time if there was a quid pro quo between Gates and Grove. |