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

To: J Krnjeu who wrote (15700)	2/9/1999 1:02:00 AM
From: LR	Respond to of 74651

Gates got Intuit to use Microsoft Web browser If this is old news, sorry. Monday, February 8, 1999 06:27 PM Mail this article to a friend new! (Recasts lead, adds details para 4, Poole testimony last para) By David Lawsky WASHINGTON, Feb 8 (Reuters) - Microsoft chief Bill Gates said Intuit Inc. (Nasdaq:INTU) . must agree to use his company's Web browser if it wanted favorable placement in the Windows operating system, an executive at the world's biggest software company said on Monday at Microsoft's antitrust trial. That goes to the heart of the government's allegation that Microsoft Corp. (Nasdaq:MSFT) used unfair tactics to compete against Netscape Communications Corp. (Nasdaq:NSCP) in a battle for share of the Web browser market. William Poole, senior director of business development for Windows, said he was able to achieve Gates' long-time goal of getting Intuit to make use of Microsoft's Internet Explorer Web browser in its popular "Quicken" money management software, and other software. Intuit dropped Netscape's browser in the 1997 deal. In return, Microsoft made a link to Intuit's Web site available through its "channel bar," an oblong box that appeared on the Windows 95 screen, or "active desktop" as Microsoft calls it. The box is subdivided into bars and clicking on the "business" channel brought up a list of links, including that for Intuit. Intuit President William Harris testified earlier that "placement on Microsoft's Active Desktop was believed by Intuit at the time (of the negotiation) to be critical to the success of its Web sites." Harris testified that Microsoft's Poole said that Gates himself was inflexible on giving Intuit that access unless Intuit agreed to drop Netscape for Microsoft's Internet Explorer software. Under cross-examination, Poole conceded that Harris' testimony was correct. Gates "didn't mandate details," said Poole. But Poole said that Gates "sent a high level message ... that platinum level partners promote Microsoft Internet Explorer preferentially to Netscape Navigator and other browsers." Intuit was a "platinum level" partner, meaning it had a closer tie to Microsoft than "gold" partners. The Justice Department and 19 states allege that Microsoft used monopoly power in the Windows operating system to illegally preserve that monopoly power and extend it to other areas of business. A big part of the case concerns the battle over Web browsers. During his testimony on Monday, Poole at first said that Internet Explorer was a benefit that Microsoft was providing to Intuit. "It sounds to me like you are at least trying to give us the impression that they came to you and said: 'We'd like to use your browser," asked government lawyer David Boies. Poole replied: "I'm not trying to imply it. It's true." At that point, Boies showed Poole a July 24, 1996, e-mail from Gates, which was already in evidence at the trial. In the memo, Gates talked about his efforts to convince the then-chief executive officer of Intuit to switch from Netscape. "I was quite frank with him that if he had a favor we could do for him that would cost us something like $1 million to do that in return for switching browsers in the next few months I would be open to doing that," said Gates. The trial, which began on Oct. 19, started its 15th week and 50th court day on Monday. Poole was expected to complete his testimony on Tuesday. Quote for referenced ticker symbols: NSCP, MSFT, INTU © 1999, Reuters