Microsoft Faces New Allegations of Monopolistic Practices

A week before the highly publicized trial against Microsoft, the US Department of Justice and 20 states plan to bring forth new allegations of monopolistic business practices against the company. The allegations include claims that Microsoft pressured chip maker Intel to exclude Netscape software from Intel products, attempted to divide the market for audio-video software with Apple Computers, and doctored its Windows software to prevent it from working with a competitor's operating system.

Key Takeaways:

• The US Department of Justice and 20 states plan to file new allegations of monopolistic business practices against Microsoft, including claims of pressure on Intel to exclude Netscape software, attempts to divide the market for audio-video software with Apple, and doctoring Windows software to prevent it from working with a competitor's operating system.
• The allegations are set to be included in a government filing opposing Microsoft's request to dismiss the broad antitrust case against the company.
• Microsoft Chairman Bill Gates is scheduled for a third day of questioning in the pretrial deposition, having already undergone nearly 17 hours of questioning on Thursday and Friday.
• The allegations include a claim that Microsoft pressured Intel to exclude Netscape software from Intel products, which would have cleared the field for Microsoft's own Internet browser to gain the dominant market position.
• Microsoft denies ever making attempts to divide the market with Apple or collude with its rival in mid-1995 to divide the market for Web-browsing software.
• Government attorneys are also preparing to allege that Microsoft secured an exclusionary agreement from RealNetworks to keep its innovative audio-video software out of the hands of some Microsoft competitors.
• Microsoft paid RealNetworks $30 million for access to its technology, but the allegation is that the company insisted in a contract with RealNetworks that the maker of audio-video software not share technological information with Microsoft's competitors.

Statistics:

• $30 million: The sum Microsoft paid to RealNetworks for access to its technology.
• September 23: The date set for the trial against Microsoft.
• 20 states: The number of states joining the US Department of Justice in the antitrust case against Microsoft.
• Nearly 17 hours: The amount of time Microsoft Chairman Bill Gates was questioned in the pretrial deposition on Thursday and Friday.
• $150 million: The investment Microsoft made in Apple one year ago.

Sources:

• Knight-Ridder News Service
• Interview with Microsoft spokesman Mark Murray
• Remarks from a University of Iowa antitrust-law expert, Herb Hovenkamp
• Reports from industry sources and government attorneys.