Microsoft CEO Bill Gates Testifies in Antitrust Trial

Strategic Insights -

Despite being the chief executive officer of Microsoft, Bill Gates failed to appear in person at the ongoing antitrust trial on Monday, with his videotaped testimony from an August deposition standing in for him. Gates' testimony was described as hostile and evasive, with him displaying the characteristic tics for which he is known. The government's lead attorney, David Boies, presented evidence of email exchanges between Gates and other Microsoft executives, appearing to contradict Gates' denials of involvement in meetings, strategies, and deals with companies like Netscape, Apple, and Sun Microsystems.

Key Takeaways:

  • Gates' testimony was deemed hostile and evasive, with him frequently denying knowledge of or involvement in key events and meetings.
  • Email exchanges presented in court appear to contradict Gates' denials, showing him involved in discussions about undermining competitors like Netscape and Sun Microsystems.
  • Microsoft officials claimed that the government's presentation was "edited" and biased, but the defense admitted that the presentation also included material they had requested.
  • The government's lead attorney, David Boies, repeatedly asked Gates if he was involved in discussions of meetings, strategies, or deals with a series of companies, including Netscape Communications Corp., Apple Computer Inc., and Sun Microsystems Inc.
  • Gates denied knowledge of or involvement in Microsoft's threats to Apple, despite testimony from Apple's senior vice president of software engineering, Avadis Tevanian Jr., who stated that the company threatened to stop making Microsoft Office for Apple computers unless Apple agreed to their terms.
  • Microsoft's senior executives, including Paul Maritz, Ben Waldman, and Ben Slivka, were involved in emailing Gates about various strategies, including undermining Sun Microsystems and Apple.
  • Gates denied knowledge of or involvement in Microsoft's plans to undermine competitors, but email exchanges presented in court appear to contradict his denials.
  • Gates said he didn't understand some of the questions asked during his testimony, including about Microsoft's plans for Apple and Sun Microsystems.

Statistics:

  • Microsoft's profits from selling Microsoft Office for Apple computers (mentioned by Avadis Tevanian Jr. as a key motivator for Apple)
  • 12: the number of witnesses allowed per side in the trial, according to Judge Thomas Penfield Jackson
  • 2 hours: the length of Gates' testimony presented in court
  • 8: the day of the month on which Microsoft's Ben Waldman sent an email to Gates about canceling Mac Office 97 to pressure Apple
  • 14: the day of the month on which Microsoft employee Ben Slivka sent an email to Gates restating Gates' concerns about Java

Sources:

  • The Wall Street Journal (1998)
  • Knight Ridder/Tribune Information Services (1998)
  • United States District Court (1998)