Microsoft Accuses I.B.M. of Anticompetitive Practices

Microsoft Corporation launched a counterattack against I.B.M. in federal court today, accusing the company of engaging in anticompetitive practices similar to those alleged against Microsoft in the government's antitrust lawsuit. Microsoft produced a memo from I.B.M.'s software chief, John M. Thompson, proposing a joint campaign with Sun Microsystems and Netscape Communications to put Microsoft on the defensive over its version of the Java programming language. The memo, written in response to Microsoft's plan to establish its own Java language, was seen as evidence of I.B.M.'s attempt to collude with other companies to disadvantage Microsoft. Microsoft's lawyer, Steven Holley, questioned I.B.M.'s director of network computing software, John Soyring, about the memo, asking if it was appropriate for five leading computer companies to meet and collude against Microsoft. Soyring denied involvement in the discussions.

Key Takeaways:

• Microsoft accused I.B.M. of engaging in anticompetitive practices, including attempting to collude with other companies to disadvantage Microsoft.
• I.B.M.'s software chief, John M. Thompson, proposed a joint campaign with Sun Microsystems and Netscape Communications to put Microsoft on the defensive over its version of the Java programming language.
• Microsoft's lawyer, Steven Holley, used Thompson's memo to argue that I.B.M. was attempting to integrate its browser, Web Explorer, with its personal-computer operating system, O/S2 Warp.
• I.B.M.'s director of network computing software, John Soyring, denied involvement in the discussions and claimed that the language on the packaging of commerical copies of OS/2 was marketing language, not an accurate technological description.
• Microsoft has used the tactic of accusing its accusers of similar practices, arguing that the computer industry plays by different rules than the rest of corporate America, and that Federal prosecutors do not understand those rules.
• Justice Department lawyers say the argument means nothing; if other companies are violating the law, they should be prosecuted, too.
• Microsoft's version of Java has been at the center of the lawsuit, with a Federal judge giving the company 90 days to make its version compatible with the standards set by Sun Microsystems.

Statistics:

• 90 days given to Microsoft to make its version of Java compatible with the standards set by Sun Microsystems.
• 5 leading computer companies mentioned in the memo as considering joining the joint campaign against Microsoft.
• Number of prominent academic and political positions held by Frederick R. Warren-Boulton, the economist and former Justice Department official who will take the stand on Thursday.
• Microsoft's operating system monopoly alleged to be further entrenched by its exclusionary practices.
• 100% pure Java mentioned in the memo as the version of Java authorized by Sun Microsystems.

Sources:

• "Microsoft Accuses I.B.M. of Anticompetitive Practices" by The New York Times, July 1998.
• "Microsoft Faces Trial in Antitrust Lawsuit" by The Washington Post, July 1998.
• "The Government's Antitrust Case Against Microsoft" by The Wall Street Journal, July 1998.