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Microsoft's Antitrust Trial Enters Rebuttal Phase as Settlement Hopes Fade

Strategic Insights

— 1 min read

The epic antitrust trial between Microsoft and the US government is set to resume next week, with both sides preparing to present fresh evidence and analysis in the so-called rebuttal phase. The trial, which commenced three months ago, had sparked hopes of a settlement deal, but private sources close to the case now dismiss the possibility of a resolution in the near future. The Justice Department and 19 states will counter Microsoft's defense, which hinges on the company's $10 billion takeover of Netscape Communications by America Online (AOL) in November.

Key Takeaways:

  • Microsoft has been working to build a defense around the AOL-Netscape deal, which it claims represents its best hope of dismissing the government's accusations of monopolistic practices.
  • The company has attempted to extract admissions from AOL executives that the internet browser was a valuable asset, but these efforts have been met with little success.
  • Microsoft has also accused the government and AOL of colluding to conceal details of the Netscape takeover, which it claims put its lawyers at an unfair disadvantage.
  • The company plans to call a hostile witness from AOL, David Colburn, as one of its final three witnesses to question him about the contents and candor of his prior testimony.
  • The Justice Department is expected to recall Edward Felten, a Princeton University researcher who discovered that Microsoft manipulated a video demonstration to support its case.
  • The rebuttal phase will focus more on the credibility of both sides rather than the weight of their legal arguments.

Statistics:

  • $10 billion: the value of the AOL-Netscape deal, which Microsoft claims is essential to its defense.
  • 19: the number of states joining the US government in the antitrust lawsuit against Microsoft.
  • 3: the number of witnesses each side can call in the rebuttal phase to present fresh evidence and analysis.

Sources:

  • "Financial Times Limited. All Rights Reserved.", Financial Times, 1999.

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