Microsoft Antitrust Trial Opens with Personal Attack on Bill Gates

The antitrust trial against Microsoft opened in federal court, with the Justice Department and 20 states presenting evidence against the company's chairman, Bill Gates. Gates, in a taped deposition, claimed he knew little about the key charges but was shown to have written numerous memos and E-mail messages that clearly demonstrate his involvement in the company's efforts to crush its competitor, Netscape Communications Corp. The government portrayed Microsoft as a company obsessed with dominating the software market and willing to use threats and financial inducements to force other companies to drop alliances with Netscape.

Key Takeaways:

• The trial centers around Microsoft's alleged illegal collusion to divide software markets, a charge that Gates denied, stating he had not even read the government's antitrust suit.
• Gates testified in a deposition that he knew little about the key charges but was shown to have written numerous memos and E-mail messages that demonstrate his involvement in the company's efforts to crush Netscape.
• The government presented over a dozen memos and E-mail messages written by Gates and other senior Microsoft executives, showing they knowingly directed efforts to crush Netscape and coerce other companies into dropping alliances.
• The government portrayed Microsoft as a company willing to use threats and financial inducements to achieve its goals, with Gates writing in one memo that Microsoft might have to compete with Netscape but could "help them" by paying them money.
• A central argument in the government's suit is that Microsoft bundled its Web browser with Windows as a tactic in its war with Netscape, which Microsoft had argued was added for customer benefit.
• Microsoft's senior vice president of law and government affairs, William H. Neukom, claimed the government's presentation was based on "loose and unreliable rhetoric" and did not prove anti-competitive conduct.
• The government responded that the antitrust laws foster competition on the merits but that what was presented was a situation of clear restraint of trade.

Statistics:

• The Justice Department and 20 states presented evidence against Microsoft in the antitrust trial.
• Gates wrote over a dozen memos and E-mail messages that demonstrate his involvement in Microsoft's efforts to crush Netscape.
• Microsoft's Web browser has been bundled with Windows since at least the last year, allegedly as a tactic in its war with Netscape.
• Gates wrote in one memo that he would like to see a "very powerful deal" made with Netscape.

Sources:

• The New York Times News Service, WASHINGTON -- "Microsoft Opens Antitrust Trial with Personal Attack on Bill Gates"
• Microsoft Corp. corporate communications and financial documents ( referenced through testimony and exhibits )