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Microsoft Corp.

Microsoft's Dominance of Windows Operating System Challenged in Antitrust Case

Strategic Insights

— 2 min read

Andrew J. Glass testifies before the federal courts, arguing that Microsoft's control over Windows operating system is stifling competition on the Internet and comparing it to a public utility like a telephone dial tone. William Harris, CEO of Intuit Inc., presents a remedy of "operating system neutrality" in 47 pages of written testimony, stating that unless the court limits Microsoft's expansion into the Internet, it will remain the gatekeeper of the Internet, constraining competition. Harris' proposed treatment of Windows as a public utility stems from antitrust case law known as the essential facility rule, which could come into play during the remedy phase of the trial. Microsoft's lawyers will cross-examine Harris, and Chairman Bill Gates will serve as a potential rebuttal witness.

Key Takeaways:

  • Andrew J. Glass will argue before the federal courts that Microsoft's control over Windows operating system is hindering competition on the Internet.
  • William Harris, CEO of Intuit Inc., proposes a remedy of "operating system neutrality," suggesting that the court treat Windows like a public utility, similar to a telephone dial tone.
  • Harris notes that no other piece of software has the same centrality and necessity as Windows.
  • The government's case against Microsoft includes 19 states and 47 pages of written testimony from Harris.
  • Microsoft's lawyers will cross-examine Harris, and Chairman Bill Gates will serve as a potential rebuttal witness.
  • The antitrust case has been recessed for the holidays and is expected to resume in mid-January.
  • The remedy proposed by Harris could come into play during the trial's final phase, after the Department of Justice and 19 states rest their case.
  • Harris emphasizes that Microsoft's control over Windows exerts a huge pull over how independent software vendors conduct business, including his own firm, Intuit.
  • Intuit was forced by Microsoft to sign a deal promoting Internet Explorer browser in exchange for guaranteed placement on the Windows desktop for Intuit's Internet-based products and services.
  • Harris' proposed remedy of treating Windows as a public utility stems from the essential facility rule, a body of antitrust case law most often applied in railroad right-of-way disputes.
  • The case has implications far beyond the software industry, as the Internet is rapidly becoming a major conduit for communications and commerce.

Statistics:

  • 47 pages: The length of William Harris' written testimony.
  • 19: Number of states participating in the antitrust case against Microsoft.
  • 12: Number of witnesses the government has allotted to present its case.
  • 12: Number of witnesses Microsoft will call to present its defense.
  • 1890: The year the Sherman Antitrust Act was passed, which the government is using to challenge Microsoft's business practices.
  • Mid-January: The expected date when the Department of Justice and 19 states will rest their case.

Sources:

  • Andrew J. Glass, "To lift the 'choke point' that Microsoft Corp. holds over Internet commerce, the federal courts should treat Windows, the dominant operating system for personal computers, like a telephone dial tone..."
  • William Harris, CEO of Intuit Inc., 47 pages of direct written testimony.

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