Microsoft Attacks Intel Executive's Credibility in Antitrust Trial

Strategic Insights -

The Government's antitrust trial against Microsoft entered its fourth week, with lawyers for the software giant attempting to discredit an Intel executive who has emerged as a crucial witness. Steven McGeady, an Intel vice president, testified this week that Microsoft executives, including William H. Gates, had threatened Intel's leaders in 1995 as part of a successful effort to push them out of the software-development business and dissuade them from supporting Netscape Communications Corporation. Microsoft lawyers, however, portrayed McGeady as a disgruntled employee with a personal animosity towards Microsoft, citing notes from meetings that referred to him as a "prima donna."

Key Takeaways:

  • Microsoft's lawyers presented a detailed attack on McGeady, portraying him as an arrogant and difficult Intel employee who held a strong personal animosity towards Microsoft.
  • McGeady testified that Microsoft executives, including Gates, had threatened Intel's leaders in 1995, attempting to push them out of the software-development business and dissuade them from supporting Netscape Communications Corporation.
  • Microsoft lawyers introduced testimony from McGeady's supervisor, Ron Whittier, that contradicted his account of the events, but McGeady remained unbowed.
  • McGeady wrote in an internal memo that Microsoft's use of the Rolling Stones song "Start Me Up" to promote Windows 95 was a poor choice, suggesting that a more relevant song might be "Sympathy for the Devil."
  • McGeady expressed his desire for more competition in the software industry, stating that anything that could bring more competition to the industry was good for Intel.
  • Microsoft lawyers attempted to show that McGeady's testimony was motivated by personal animosity towards Microsoft, but McGeady maintained that he was testifying as a result of a Government subpoena.

Statistics:

  • Microsoft executives, including William H. Gates, allegedly threatened Intel's leaders in 1995 as part of a successful effort to push them out of the software-development business.
  • Microsoft's lawyers presented 30 E-mail and deposition excerpts during the trial.
  • Intel's senior executive directly involved with the issues in question during 1995 and 1996.
  • Microsoft's control of the software industry was a primary concern, according to excerpts from their own files.

Sources:

  • "Microsoft Attacking Intel Executive's Credibility in Antitrust Trial," The New York Times, Volume -, Issue -, Date -.
  • Associated Press, "Microsoft Trial: Intel Executives Say Gates Threatened Them," -.
  • McGeady's internal memo, "Software Business Business," August 1995.
  • McGeady's electronic mail message to Andrew S. Grove, "Software Industry Competition," December 1996.