WASHINGTON -- Despite its agreement to purchase Netscape Communications, America Online is still using Microsoft's rival Web browser. The reason? A Microsoft official testified Wednesday that AOL was trying to bolster the antitrust case against the software company.
Since March 1996, AOL (AOL) has provided Microsoft's Internet Explorer to its customers under a contract that AOL could have canceled when it agreed to acquire Netscape (NSCP) at the end of 1998.
Changing browsers "would be inconsistent with AOL's desire to support the government's position in this case," said Brad Chase, a Microsoft (MSFT) vice president. "I believe they made a very careful decision not to do that."
For a window onto the Microsoft antitrust trial, visit US v. Microsoft. - - - - - -
Shortly before completing his testimony, Chase testified that it was "inevitable" that AOL would eventually switch its browser to Netscape.
The next witness was to be John Rose, an executive with Compaq Computer, one of Microsoft's biggest customers.
The US Justice Department and 19 states accuse Microsoft of using monopoly power to compete illegally against Netscape in the Web browser market.
AOL had no comment on Chase's remarks. But when the renewal was announced on 24 November, AOL's president, Steve Case, said that he expected to "maintain our working relationship with Microsoft, continuing to include Internet Explorer in the AOL service."
The AOL agreement to use Internet Explorer was key to helping Microsoft win the browser war against Netscape, giving Microsoft millions of new users in a single deal.
Earlier in the trial, AOL executive David Colburn testified that his company believed its product needed to be on the Windows desktop screen and that was why it agreed to adopt the Microsoft browser.
Chase testified that AOL liked what he characterized as the technical superiority of IE over Netscape.
Also, in testimony made available Wednesday, Microsoft executive Daniel Rosen denied that he made any offers to divide the market for browsers with Netscape during a meeting in June 1995. Rosen is expected to follow Compaq's Rose into the witness box.
The government said that Microsoft tried to get Netscape to give up competing with it at that June meeting, promising to invest in Netscape and seeking a board seat. Rosen said that was wrong.
"There was no proposed 'market division,'" Rosen said. He added that he told Netscape president James Barksdale that a board seat "was not in any way essential." He said Microsoft chief Bill Gates "was not fixated on a board seat or on an equity investment, either.
"I believe that Netscape either is attempting to rewrite history or deliberately misled me and my colleagues during our June 1995 discussions."
