WASHINGTON -- Even top computer maker Compaq, which has a close working relationship with Microsoft, was worried by the software giant's "improper use of a monopoly position," a Compaq memo released on Thursday said.
Portions of the memo -- and documents expressing fear about what retaliation Microsoft might take if Compaq worked with other software makers -- were introduced at Microsoft's antitrust trial.
The US government alleges that Microsoft (MSFT) used monopoly power to compete unfairly against Netscape for the market for browsers used to surf the Internet.
For a window into the Microsoft antitrust trial, visit US v. Microsoft. - - - - - -
Compaq (CPQ), the world's biggest computer maker, preloads Microsoft software on its products and has even publicly defended Microsoft against some of the government antitrust charges.
The memos revealed the frustration Compaq's employees felt when they tried to deal with other software companies, such as Netscape and Go Corp.
In a memo dated 12 November 1996, Compaq employee Bob Friedman noted that Microsoft was unhappy that a Netscape icon -- the symbol that starts the program -- appeared on the "desktop" screen of some Compaq personal computers.
"Microsoft's stance to date raises questions of improper use of a monopoly position," Friedman wrote.
In 1993, slides prepared for a Compaq meeting speculated on what Microsoft might do if Compaq chose to use software from Go Corp. for use in hand-held devices.
Compaq listed "potential reactions" by Microsoft, among them that Microsoft might "sabotage our efforts" by using Windows 95 (then in development) to "break" some of Compaq's software. Compaq also feared that Microsoft would withhold from it information on Windows 95.
But the slide showed the company's conclusion that the risk of retaliation from Microsoft was "manageable." In the end, however, Compaq decided not to work with Go Corp.
The memos became public during the government's cross-examination of John Rose, a Compaq executive called by Microsoft. Rose testified that Compaq now enjoys cut-rate prices for Windows.
At the opening of the trial on Thursday, District Court Judge Thomas Penfield Jackson announced that for the first time in its 16 weeks the trial would meet on Friday. That will lead up to an expected recess in March and part of April.
Jackson told the lawyers on 8 February that he was "very anxious to conclude the presentation" of the main witnesses.
Rose was the 20th of 24 witnesses. Four rebuttal witnesses would be heard after the break.
Copyright© 1999 Reuters Limited.
