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To: jach who wrote (36778)3/1/1998 4:15:00 PM
From: Glenn D. Rudolph  Respond to of 61433
 
Gates faces off with rivals before Senate panel

Reuters Story - March 01, 1998 15:46
%BUS %US %DPR %ENT MSFT NSCP SUNW DELL GPSI V%REUTER P%RTR

By David Lawsky
WASHINGTON, March 1 (Reuters) - Microsoft Corp.
chief Bill Gates and some of his bitterest computer industry
rivals face off this week before a Senate panel in a
high-stakes battle for public opinion.
Senate Judiciary Committee Chairman Orrin Hatch, often a
critic of Microsoft, called the hearing for 10 a.m. (1500 GMT)
Tuesday to look at the role of monopolies and competition in
the personal computer industry.
The panel includes the chief executive officers of five
software and computer companies, along with an analyst who
plans to stand back from the controversies.
Jim Barksdale of Netscape Communications of
Mountain View, Calif., Scott McNealy of Sun Microsystems
of Palo Alto, Calif., Michael Dell of Dell Computer
Corp. of Round Rock, Texas, and Doug Burgum of Great
Plains Software Inc. of Fargo, N.D. will be at the
table with Gates.
They will be joined by Stewart Alsop, an analyst who is now
a venture partner in New Enterprise Associates of Menlo Park,
Calif.
The Senate probe into Microsoft and monopolies tracks an
inquiry by the Justice Department. The Justice Department has
charged that Microsoft violated a 1995 consent decree aimed at
increasing competition in the software industry.
The department says Microsoft holds a monopoly position in
personal computer operating system software and has leveraged
that market power to unfairly compete against Netscape. Both
Netscape and Microsoft manufacture software browsers used to
peruse the Internet's World Wide Web.
Hatch at first invited only Gates, Barksdale and McNealy.
Both Barksdale and McNealy are openly hostile to Gates and
highly critical of the way he competes. Sun is in the middle of
a suit against Microsoft.
After the invitations went out, Gates and Hatch spoke on
the telephone. According to aides for both men, Gates agreed to
appear but expressed concern that the panel be "balanced and
fair." So Hatch added two additional CEOs sympathetic to Gates
-- Dell and Burgum.
And the committee also brought Alsop to the panel to add an
independent voice. Alsop writes a column for Fortune Magazine
and was a computer analyst for years.
"My expectation is that I am supposed to say 'this is what
the issues are,' not to have a position," said Alsop.
Those in the companies say that they too want an
examination of the issues, not the personalities.
"The issues are more important than the people," said
Michael Morris, chief counsel for Sun. "The issues include
monopoly power and how it is exercised and the degree to which
the exercise of that power forecloses consumer choice and
stifles innovation."
Netscape's chief counsel, Roberta Katz, said the hearing
would provide an opportunity to help explain to people why they
should care about competition in the software industry.
"Software is as significant in the information age as oil
has been in the industrial age and therefore everyone needs to
know what's happening in the software industry," she said.
A Microsoft Spokesman, Jim Cullinen, said that Gates hopes
the hearing "will provide a fair and balanced dialogue about
our industry and the exciting developments in technology
today."