Microsoft Tries to Shift Blame in Antitrust Trial by Citing Sun's Behavior

The Microsoft Corporation, charged with anti-competitive behavior by the Federal Government and 20 states, sought to deflect blame in court yesterday by highlighting similar behavior by its competitor, Sun Microsystems Inc. Microsoft claimed that Sun executives had meetings with Netscape Communications Corporation, discussing a possible agreement not to compete in Internet software. The testimony aimed to show that Sun's actions were just as egregious as those alleged by the Government against Microsoft.

Key Takeaways:

• Microsoft's lawyers attempted to shift the focus of the antitrust trial by introducing internal emails from Sun executives that described meetings with Netscape.
• The emails suggested that Sun and Netscape may have been working towards an agreement not to compete in Internet software, allegedly demonstrating that Sun's behavior was just as anti-competitive as Microsoft's.
• Dr. James A. Gosling, a Sun executive, testified that he did not recall a decision to back away from browsers due to any agreement with Netscape.
• Mark Murray, a Microsoft spokesman, claimed that the testimony "further demonstrated that throughout the software industry, companies meet together, talk together, plan together."
• The Government's lead trial lawyer, David Boies, argued that Microsoft's comparative behavior with Sun was irrelevant, citing differences in market share and competition.
• Microsoft's lawyers suggested that Sun's version of Java was slow, bug-ridden, and poor-performing, justifying Microsoft's development of its own, superior version of Java.

Statistics:

• 20 states filed an antitrust suit against Microsoft.
• Netscape had a commanding market share in browser software used to navigate the Web when the meetings between Sun and Netscape took place.
• The Government's case against Microsoft alleges that the company threatened to crush Netscape if it did not cede to Microsoft the market for browsers written for Microsoft's Windows operating system.
• Lost in court testimony, Sun decided not to begin selling Hot Java because of difficulties in making money with it when Microsoft was giving away its browser, Internet Explorer.

Sources:

• "Microsoft Tries to Shift Blame in Antitrust Trial" (1998, October 6)
• Associated Press
• "Quotes from the courtroom" (1998, October 6)
• The New York Times.