"I have not made any secret of the fact that I have serious concerns about Microsoft's recent efforts to exercise its monopoly power and that I plan to continue to examine the company's practices," Committee Chairman Sen. Orrin Hatch, (R-Utah), said in his opening statement, according to published reports. Novell, Inc., a top Microsoft competitor, is based in Provo in Senator Hatch's home state.
Although the hearing generally was to look at electronic commerce issues, Microsoft was a main topic of discussion, with attorneys, trade group representatives and antitrust experts testifying about the Redmond, Wash. based company. Microsoft reportedly offered to send a representative to the session, but was denied a chance to participate.
Last month, the U.S. Department of Justice filed a federal lawsuit against Microsoft charging that the company violated a 1995 consent decree by engaging in practices that shut out its competition. The lawsuit contends that Microsoft threatened to yank licenses for its Windows 95 operating system if PC makers didn't also offer Internet Explorer.
Microsoft is arguing that its Internet Explorer software is part of the operating system. The company says customers are demanding tight integration between Web browsers and the operating system.
The Internet Explorer debate was central to the hearing and also to the concerns of some who testified that Microsoft is set to dominate electronic commerce. Some 80 % of PCs operate on Windows, the next version of which will include the browser functionality of Internet Explorer, which is currently offered free on Microsoft's Web site.
Charles Rule, a former Justice Department antitrust official during the Reagan administration, yesterday testified that he doubts the government can prove its case against Microsoft, according to published reports.
"Basically, there is no allegation that Microsoft, in effect, has disabled any competitor," Rule was quoted as saying. "Whatever one wants to say, the government has a very tough case."
Covington & Burling, Rule's law firm, represents Microsoft in nonantitrust cases. He argued that antitrust laws are sufficient to protect businesses and provided the hearing with some of the only testimony that defended Microsoft and its business practices.
"I think we make a big mistake when we let lawyers and [the U.S.] Congress, as bright and capable as you all are, basically decide what technology is going to get integrated into a computer," he reportedly told the committee.
Committees and subcommittees of both the U.S. House and Senate debate issues that eventually could wind up shaping legislation. The Judiciary Committee is expected to conduct additional hearings regarding Internet commerce, although it's likely that Microsoft will continue to pop up in discussions.
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