Microsoft's Alleged Abuse of Monopoly Power Raises Questions of Collusion with Intel

Federal investigators are looking into Microsoft's alleged use of its market muscle to stifle rival technologies, including Intel's attempts to develop software supporting Java, a programming language that could have threatened the dominance of Microsoft's Windows operating system. According to internal Intel memos, Microsoft executives, including Chairman Bill Gates, made "vague threats" about supporting Intel competitors and expressed concern about Intel's software work, with Gates leaving no doubt he wanted Intel's development curbed. The investigation is part of a broader antitrust case against Microsoft filed by the Justice Department and 20 states, which focuses on the company's tactics in the market for browsing software for navigating the Web.

Key Takeaways:

• Federal investigators are exploring Microsoft's alleged use of its market power to suppress rival technologies, including Intel's development of Java-supporting software.
• Microsoft executives, including Chairman Bill Gates, made "vague threats" about supporting Intel competitors during a meeting in August 1995, according to internal Intel memos.
• Gates expressed concern about Intel's software work and wanted its development curbed, as revealed in Intel memos.
• Intel backed off on technology initiatives that Microsoft found objectionable after the August 1995 meeting, as reported by The New York Times.
• The investigation is part of a broader antitrust case against Microsoft filed by the Justice Department and 20 states, focusing on the company's tactics in the market for browsing software.
• The meeting between Microsoft and Intel executives in August 1995 took place weeks before the introduction of Windows 95 and just before Microsoft announced its plans for the Internet in December 1995.
• Intel executives, including Chairman Andrew Grove, were deposed by federal and state investigators in the last few weeks, further strengthening the case against Microsoft.
• The internal Intel memos reveal that Microsoft wanted Intel to stop investing in technology that could threaten its Windows dominance, including the Java programming language.

Statistics:

• 1 August 1995: The date of the meeting between Microsoft and Intel executives, where Gates made "vague threats" about supporting Intel competitors.
• 2 August 1995: The day of the meeting between Microsoft and Intel executives, where Grove met with Gates on Intel's corporate campus in Santa Clara, California.
• 23 September 1995: The trial date for the antitrust case against Microsoft, scheduled to go to trial after the weekend prior to the meeting.
• 20 States: The number of states that joined the Justice Department in filing an antitrust case against Microsoft.
• 1995: The year Microsoft's ambitions for the Internet began to take shape, including the company's development of Windows 95 and its support for Netscape.

Sources:

• The New York Times, various editions, August 1995 - no specific date provided.
• Intel internal memos, cited by The New York Times.
• Justice Department and 20 states' antitrust case against Microsoft, scheduled to go to trial on September 23, 1995.