Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Uncle Frank who wrote (29386)	9/19/1999 11:19:00 AM
From: taxman	Read Replies (1) \| Respond to of 74651

Washington, Sept. 19 (Bloomberg) -- After honing their rhetorical barbs in massive legal pleadings, Microsoft Corp. and government lawyers argue in court this week over whether the software giant illegally defends its dominance of the market for personal computer operating system software. The day-long arguments scheduled for Tuesday will give U.S. District Judge Thomas Penfield Jackson an opportunity to probe the strengths and weaknesses of government charges that Microsoft squelched competition from rival software makers such as Netscape Communications Corp., now part of America Online Inc., to preserve a monopoly in PC operating systems. ``It's a wonderful opportunity for him to push each side directly to address what the other side thinks are its killer arguments,' said William Kovacic, an antitrust law expert at George Washington University law school. The judges' questions for lead government trial attorney David Boies and Microsoft lawyer John Warden also could provide insights into what he thinks of the evidence and how he may rule. ``I imagine he's got a list for himself of 10 areas of concerns,' Kovacic said. Jackson could be imagined asking Boies: ``What single fact is your most powerful fact showing consumer harm by Microsoft's alleged misconduct?' Kovacic said. Questions For Microsoft Jackson is likely to press Warden on his claim that Microsoft's Windows operating system does not monopolize its market even though it powers 90 percent of the world's PCs, Kovacic said. The judge could turn to Warden and say, ``Tell me again why you don't have monopoly power. The government says you do. Explain to me why they are wrong,' Kovacic said. The courtroom proceeding comes after the government and Microsoft have exchanged broadsides in pleadings submitted to the judge Sept. 10. The proposed findings of fact submitted by both sides are based on testimony and documents admitted into evidence during more than 20 weeks of testimony, which ended in June. The government scoffed at what it termed ``bizarre assertions' by Microsoft Chairman Bill Gates that he was unaware in 1995 of any threat to Windows posed by a Web browser being developed by Netscape. Gates' testimony ``is simply not credible,' the government said. Microsoft's Riposte In reply, Microsoft argued that the government's charge the world's No. 1 software maker sought to monopolize the browser market ``suffers from a complete failure of proof.' The government totally ignores the fact that AOL, whose 15,000 online subscribers now use Microsoft's Internet Explorer to surf the Web, controls 60 percent of the market for browsers, Microsoft said. As the market's ``kingmaker,' AOL may opt in a year to exclusively use the Netscape browser. ``If AOL decided that it is in the best interests to base its . . . proprietary access software on Netscape Navigator, Internet Explorer's usage share would instantly drop to below 30 percent, making a mockery of plaintiffs' claim,' Microsoft said. Jackson will issue findings of fact in the weeks following the court proceeding. The parties will follow up on Jackson's factual findings with legal briefs on whether Microsoft violated the Sherman Antitrust Act by trying to restrict Netscape's ability to distribute its rival Web browser. Legal observers have speculated that Jackson has structured the proceedings to encourage both sides to seek an out-of-court settlement. Microsoft has approached the government on at least two occasions this year, though the discussions so far have led nowhere. The judge's factual findings ``will be occasion to talk some more,' though it may be difficult for both sides to reach common ground, Kovacic said. ¸1999 Bloomberg L.P. regards