Monday May 3 9:52 AM ET
IBM To Testify For Government On Microsoft
By David Lawsky
WASHINGTON (Reuters) - IBM Corp. will become the first computer maker to testify for the
government in the antitrust case against Microsoft Corp. (Nasdaq:MSFT - news), a source close to the
case said Monday.
The source confirmed reports that IBM will give details on how Microsoft allegedly used its power as the supplier of the
Windows operating system to push computer makers around.
IBM will testify when the trial, currently in recess, enters its rebuttal stage. A formal list of rebuttal witnesses was to be released
later Monday by both sides.
Computer makers are intimately tied to Microsoft and their employees know first-hand about the company's business practices.
But they have until now refused to testify in court about the software giant, which provides computer makers with the Windows
operating system that they must have to stay in business.
A glimpse of the kind of testimony that a computer maker can provide came earlier this year, when the government questioned
a Gateway 2000 Inc. (NYSE:GTW - news) executive, James von Holle, who said in written answers that his company was
threatened by Microsoft.
A Gateway license with Microsoft was ''contingent on Gateway's agreement not to offer competitive products'' on some of its
models, von Holle said.
Microsoft senior vice president Joachim Kempin testified earlier this year he knew nothing about the Gateway 2000 allegations.
The government contends that Microsoft holds a monopoly on its Windows operating system for personal computers. But the
market for server software, used to work with networks of computers, is still competitive.
Critics of Microsoft contend the company is trying to leverage monopoly power in its Windows system to acquire a monopoly
in the server market.
The Justice Department and 19 states have presented a dozen witnesses so far, as has Microsoft. Each side will have three
rebuttal witnesses once the trial resumes, which could be late this month.
The government contends that Microsoft abused monopoly power in the Windows system to compete unfairly. Its case
focused in large part on competition with Netscape Communications in the market for Web browsers.
Netscape has since been acquired by America Online Inc. (NYSE:AOL - news),, and two AOL executives will testify at
depositions later this week on the takeover. Barry Schuler, of the company's interactive services group, testifies Wednesday.
Chief Executive Officer Steve Case will testify Friday.
dailynews.yahoo.com |
