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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: Uncle Frank who wrote (28024)8/9/1999 12:36:00 AM
From: Ian Davidson  Read Replies (1) | Respond to of 74651
 
From the WSJ:

August 9, 1999

Microsoft to Argue U.S. Failed
To Show It Acted as a Monopoly

By JOHN R. WILKE
Staff Reporter of THE WALL STREET JOURNAL

WASHINGTON -- Microsoft Corp. will argue the government hasn't
shown that the huge software company is a monopolist or that it has
restricted the distribution of competing products.

In a final round of filings Tuesday with U.S.
District Judge Thomas Penfield Jackson here,
both sides will lay out the facts they believe
have been shown during the company's
antitrust trial. On Sept. 10, each will have a chance to answer the other's
filing; closing arguments in the case are due Sept. 25.

A Justice Department spokesman declined to comment on the filings. They
are expected to run hundreds of pages, covering the factual points both
sides pressed in the case, which began last Oct. 19.

Microsoft will argue that the U.S. case ignores the competitive and
fast-changing nature of the industry and the many threats the company
faces from America Online Inc., Sun Microsystems Inc. and others. The
company's lawyers briefed reporters on their court papers late last week.

In the filing, Microsoft is also expected to argue that the government failed
to show that competing Internet-browser software was foreclosed from
the market by contracts Microsoft imposed on its Internet partners or PC
makers, its most important distribution channel. Instead, Microsoft will
argue that its rival was able to distribute millions of copies of its software.

In its lawsuit last year, the government said Microsoft embedded Internet
software into its dominant Windows operating system to crush rival
Netscape Communications Corp., later acquired by AOL.

Microsoft will respond that its Internet software is fully integrated with
Windows and that the government's attempt to remove the browser simply
hid access to it, leaving it in place and damaging Windows.

Microsoft also will argue that the integration provides substantial consumer
benefits. It will cite pretrial testimony of a Boeing Co. executive to support
this claim. An appeals-court ruling last year asserted that Microsoft need
only show "plausible" consumer benefit when it adds new software
functions to Windows.

Monday's issue of the New Yorker magazine, meanwhile, portrays
Microsoft Chairman Bill Gates as refusing to give ground on the issue of
adding new features to Windows. "We've always wanted to settle this
thing," he said, but didn't want to be forced to go back to the government
every time a rival complained that something new in Windows hurt its
business. "You have to have a business left when you settle," he said.