Microsoft Corp. today sought to defend itself in the court of public opinion, outlining its official response to the U.S. government's charges that the company is engaged in anticompetitive practices.
Microsoft yesterday held a press conference and a demonstration to elucidate points covered in its initial response to the government, filed several weeks ago, as well as its refined response, which the company filed late last night.
The Department of Justice claims that Microsoft violated a 1995 antitrust consent decree between Microsoft and the Department of Justice by requiring PC manufacturers to license and distribute its Internet Explorer browser as a condition of licensing its Windows operating system. The Justice Department also has charged that Microsoft is in violation for integrating its browser into its operating system, maintaining that browsers are stand-alone products. Last month, the Justice Department asked a federal court to fine Microsoft US$1 million a day for its infractions.
At the press conference today, William Neukom, senior vice president for law and corporate affairs at Microsoft, dismissed the government's concerns as a "contract dispute." Neukom also said that the contract, the consent decree from 1995, clearly shows that Microsoft planned - with the government's consent - to integrate Internet technologies into its operating system as far back as July 1993.
"The government was fully aware of Microsoft's plans" to integrate into the operating system a wide variety of functions, including some that depend on Internet technology, Neukom said.
Furthermore, the government explicitly rejected the notion that it was inappropriate for stand-alone technology to be integrated into an operating system, Neukom said. During the 13-month period when the consent decree was open for third-party comment, a graphics publisher complained that Microsoft planned to integrate a graphics package into Windows. At that time the government explicitly consented to Microsoft's plans to do so, "even though our integrating stand-alone technology might reduce the demand for that stand-alone product," he said.
Neukom also denied that Microsoft unfairly funnels people toward its Internet Explorer browser, blocking access to competing products. Yusuf Mehdi, director of Microsoft's Internet client group, started up two newly purchased PCs at the press conference to show that the machines boot up with links to competitive browsers, including Netscape Communications Corp.'s Navigator.
"There is complete end-user configuration and choice for what they decide to run on the desktop," Mehdi said.
Microsoft today also dismissed concerns that the ongoing litigation could adversely affect Windows 98, the next iteration of its operating system.
"As currently outlined, this ligitation has to do with our current product offering," Neukom said.
The case is now in the hands of U.S. federal judge Thomas Penfield Jackson, who will decide whether there is sufficient evidence to warrant further proceedings.
Microsoft's filings with the court included statements from:
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