Federal Filings Newswires
Copyright (c) 1999, Dow Jones & Company, Inc.
Wednesday, February 24, 1999
MSFT's Engstrom:Co Did Not Try To Harm Quicktime-2
FORM TYPE: LEGAL
ISSUER: FEDERAL FILINGS BUSINESS NEWS
SYMBOL: X.FFI
WASHINGTON (FFBN) -- Microsoft attorney Theodore Edelman had but one question for Microsoft's latest witness, Eric Engstrom: did Microsoft sabotage Apple's Quicktime?
As reported, Apple executive Avadis Tevanian had accused Microsoft of sabotaging Quicktime so that Quicktime did not perform well on the Windows operating system.
In a heartfelt response, Engstrom said that Microsoft "Would never do something like that" and that that allegation could have had a significant impact on Engstrom. He emphasized that he has spent a fair amount of time explaining that he was not responsible for trying to harm Apple and that Microsoft sought independent confirmation that the problems with Quicktime were created by Apple.
Engstrom also noted that Microsoft hired three companies to
verify Microsoft's testing of Quicktime and these firms found "no
indication at all that we did anything intentionally" to harm Quicktime.
On the court house steps, government lead attorney David Boies noted that Engstrom essentially admitted that Microsoft's conduct with Apple was similar to what happened with Netscape Communications Corp. (NSCP). Specifically, Boies said that Microsoft promised Apple support for one product if it would agree to not compete in another area.
Boies also noted that the government was not able to closely examine contemporaneous documents from Engstrom because he erased all of his e-mail written during the time of Microsoft's talks with Apple. However, Microsoft spokesman Mark Murray said that Engstrom's testimony "completely refutes the reckless accusations from the government and Tevanian" and noted that the government wasn't able to accomplish much with Engstrom on the stand.
Following Engstrom, Microsoft senior vice president Joachim Kampin took the stand today and his testimony began with a video that is designed to show the flexibility that original equipment manufacturers have when configuring their machines with the Windows operating system.
Meanwhile, additional details emerged today related to subpoenas served by Microsoft seeking information from Netscape, America Online Inc. (AOL) and Sun Microsystems Inc. (SUNW) on AOL's proposed $4.28 billion dollar acquisition of Netscape and a related software development agreement with Sun.
According to the subpoenas, representatives from Netscape, AOL, and Sun are to be deposed on Feb. 25.
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Engstrom's testimony is mainly interesting in that it repeats the pattern of Microsoft essentially paying people not to compete, which Boies is obviously trying to make a major theme of this case. Whether Microsoft should be allowed to pay others not to compete for its natural monopoly, value which the payees can presumably pass onto their own consumers, is, I assume, an issue for another day.
"Second best" theories are the devil of welfare economics.
As for our good buddy Joachim, the Opera ain't over 'till the fat lady sings, but I have not read of anything unexpectedly horrific having come from the mouth of Mr. Kempin -- yet.
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