WASHINGTON -- The head of America Online has bolstered a key allegation in the government's antitrust case against Microsoft, saying his company opted for the software giant's Internet browser to get a better position in the Windows operating system.
Government attorneys in the antitrust lawsuit have alleged that Microsoft (MSFT) improperly used its control over Windows to induce America Online (AOL) to select its browser, Internet Explorer, instead of one from rival Netscape.
On Wednesday, AOL chairman Steve Case said he opted for Internet Explorer largely because it was free and Microsoft had offered to promote AOL prominently in every copy of the Windows 95 operating system. "Our choice was Microsoft in large part because they provided the technology free and also were willing to bundle us with their operating system," Case told reporters after speaking at a Washington conference sponsored by Upside magazine.
Microsoft has denied any improper behavior and argued that the antitrust laws do not prevent it from simply engaging in tough business practices. After Case spoke, a Microsoft spokesman maintained that its browser was chosen because of superior features, including the ability to be integrated into America Online's own software.
"At the time, AOL told us one of the most important reasons was because our browser technology was componentized," spokesman Mark Murray said. Microsoft's browser "allowed AOL to do things that Netscape's browser simply could not do," he added.
But the government says Microsoft's use of Windows placement as an inducement to get AOL and other firms to use Internet Explorer violated antitrust laws. The case is scheduled to go to trial 15 October.
The issue arose last week when an attorney for Microsoft argued at a hearing that AOL chose Internet Explorer over the Netscape product due to its superior features in a side-by-side comparison. David Boies, arguing for the Justice Department, responded that in an email message, Microsoft chairman Bill Gates had conceded that AOL did not think Internet Explorer was superior to Netscape's browser. Rather, AOL saw Microsoft's browser as "good enough" and mainly wanted favorable placement in Windows, Boies argued.
Copyright © 1998 Reuters Limited.
