Recalcitrant Bill?
zdnet.com
New Allegations Batter
Microsoft
Jesse Berst, Editorial Director
ZDNet AnchorDesk
If it's always darkest before the dawn, the
folks at Microsoft must expect the sun to rise any
minute. Things look gloomy. As the government's
antitrust trial heads into its fourth month of Microsoft
bashing -- with many of the hardest punches hitting Bill
Gates on the chin -- a new round of nasty allegations
are arising. Take a look:
Antitrust Trial: Pundits say the government is winning
in the court of public opinion. Courtroom antics have
created a throbbing public relations headache for
Microsoft. Most damning was Bill Gates' videotaped
testimony, during which he appeared -- take your pick
-- rumpled, rude and disobedient. As ZDNN reporter
Mary Jo Foley writes, "All the PR spin in the world
won't make the public forget that Gates wouldn't even
deign to say 'good morning' to DOJ lawyer David
Boies." Click for more.
Consumer Fraud Allegations: A key issue during the
trial is the price of Microsoft's Windows operating
system -- and whether it's unfairly inflated. The
Consumer Federation said Friday that Microsoft has
grabbed an extra $10 billion during the past three years
by overcharging consumers. It threatens a flood of
class-action lawsuits if the DOJ's antitrust charges
stick. Click for more.
Accounting Fraud, Too? Former Microsoft general
auditor Charlie Pancerzewski accuses the company of
falsifying its profit figures. Pancerzewski, who was
forced to resign in 1996, alleges Microsoft accountants
systematically cooked the books in order to trump
analyst earnings estimates -- and keep its stock
soaring. Obviously, the Securities and Exchange
Commission will flip its lid if these charges prove valid.
Click for more.
Three thorns in Microsoft's side. But things aren't as
bad as they seem:
Antitrust Trial: Under our plaintiff-goes-first legal
system, defendant Microsoft was bound to be bruised.
When its team swings into action this week, we'll hear
Microsoft's side of the story. I'm still betting the
company will defeat its antitrust woes on appeal. Click
for more.
Consumer Fraud Allegations: These charges will be
hard to prove unless the government wins the antitrust
trial. Although the DOJ has done a great job smearing
Microsoft's name, it has done a poor job proving the
allegations in its original complaint. Click for more.
Accounting Fraud? Pancerzewski is not the most
credible accuser. For one, he's a disgruntled former
Microsoft employee. After he left, 59-year-old
Pancerzewski sued the company for age discrimination
and wrongful termination, and later settled the case out
of court. Click for more. Second, though "creative
earnings management" is common at many high-tech
companies, it's not necessarily illegal. (The SEC won't
comment on whether it's investigating Microsoft.)
What do you think about the dark clouds looming over
Microsoft? Vote in the QuickPoll below. Then use the
TalkBack button below to share your opinion. I'll post
responses beneath this column.
What's your prediction for Microsoft, now
facing a barrage of bad news? |
