To: IQBAL LATIF who wrote (21456 ) 11/17/1998 3:59:00 AM From: IQBAL LATIF Read Replies (1) | Respond to of 50167
AS HWP beats street- and MICROSOFT says: 'Unaffected' by antitrust lawsuit and INTC gets a positive spin from Kurlack a good day for TECHS in prospect.. According to a report in FT--By Richard Wolffe in Washington Bill Gates, chief executive and founder of Microsoft, insisted the US government's antitrust action had not affected his business practices in any way, a court heard yesterday. Mr Gates told executives from Intel - the world's largest chipmaker and Microsoft's central partner in the computer industry - that the government did not understand his business. According to handwritten notes made by Steven McGeady, Intel's vice-president of internet technologies, Mr Gates made a frank and detailed presentation to Intel in July 1995. "This antitrust thing will blow over," Mr Gates is reported to have said. "We haven't changed our business practices at all." The US government and 20 states are suing Microsoft for abuse of its monopoly power in the software industry to bully its rival companies into dropping competitive products. Intel's evidence, which came at the start of the fourth week of the landmark antitrust trial, is potentially damaging for Microsoft because it comes from an industry ally rather than a rival. Mr Gates' comments were made as the two companies clashed repeatedly over Intel's work in developing its own internet software for the computer programmers. Mr McGeady had earlier told the court how Microsoft persistently tried to close down Intel's software division, making "terrifying" threats to sabotage the $500m launch of a new Intel chip. One Intel presentation about Microsoft in May 1995, which was presented in court yesterday, said: "There are many cultural, strategic and legal issues that cloud our relationship, but the fundamental issue is that [Microsoft] firmly believes that the largest developer of Pentium processor based platforms [Intel] has no business developing platform level software!" Microsoft mistrusted Mr McGeady and suspected he was "a champion" of its software rival, Sun Microsystems, according to an internal e-mail from a Microsoft executive in April 1996. "Unfortunately he has more IQ than most there," one executive wrote to Mr Gates. The trial was expected to continue yesterday with Microsoft's cross-examination of Mr McGeady, accompanied by conflicting evidence from other Intel executives.