Microsoft rebuts government case
The software giant releases a detailed statement outlining why its attorneys believe the government's lawsuit is legally and factually flawed.
The bulk of the report, titled "Setting the Record Straight: Microsoft Statement on Government Lawsuit," repeats point-by-point rebuttals Microsoft has made for months about the case. But among the arguments is new evidence that sheds light on Microsoft's plans for countering two government allegations related to partnerships struck with America Online and Intuit.
"In this litigation, supported by a few of Microsoft's competitors, the Justice Department (DOJ) has ignored the choices made by consumers in a free market," the 43-page statement argues. Elsewhere it says that the DOJ and 20 states have improperly altered their case because it is unsupported by both the facts and the law at issue.
"The government has turned its back on its original case because it was supported neither by the facts--as revealed in discovery during the summer--nor by the law, as revealed by the Court of Appeals decision for Microsoft in June 1998," the report argues. "Rather than proceed on the case they filed, the DOJ spent the summer looking for new stories that could be transformed into allegations of supposedly anticompetitive conduct."
The government claims that Microsoft improperly promised AOL valuable placement on the Windows desktop in exchange for the online giant agreeing to exclusively ship Internet Explorer. The government cites internal Microsoft email to further allege that AOL chairman and chief executive Steve Case believed Internet Explorer was technically inferior to Navigator, Netscape Communications' competing browser. It is a violation of federal law for a company to use a monopoly in one market to gain a foothold in a new market.
Microsoft's rebuttal, however, appears to be at odds with public statements Case made last month, in which he said the online giant chose Internet Explorer because, under the deal, AOL software would be bundled with every copy of Windows sold.
"We believe the facts and the law are on our side, and we feel that it's important that the American public hears from both sides in this story," said Microsoft spokesman Mark Murray. "The government has tried to use misleading snippets of information to mislead the American public and attack a successful American public company."