Microsoft presents antitrust appeal

Attorney: Let 'market dynamics' be the guide

April 21, 1998
Web posted at: 12:02 p.m. EDT (1602 GMT)

WASHINGTON (CNN) -- Microsoft Corp. on Tuesday argued for the overturn of a federal court ruling that banned the bundling of Microsoft's dominant Windows 95 operating system with its Internet Explorer, saying the development of new products should take place without government interference.

Microsoft attorney William Neukom said after a hearing in the U.S. Court of Appeals for the District of Columbia that the "design and contents" of new products should be left to "market dynamics."

"We believe that part of innovation has to be the integration of useful technology into new and improved products," Neukom told a news conference.

Microsoft's appeal came after a federal court judge sided with the government's position and told Microsoft to stop the bundling, which some say gives Microsoft a monopoly position in the browser market.

However, the Justice Department, which on Tuesday also presented its side to the appeals court, contends the practice of tying the sale of Windows 95 to the use of Internet Explorer is anti-competitive and "plain wrong."

Neukom

Legal experts say a ruling could come one to three months from now -- a period that includes the June 25 release date for Microsoft's new Windows 98.

The hearing could ultimately affect nearly all home computer users, since 85 percent of the personal computers in the world use Windows. And 95 percent of the new computers on the market come with Windows 95 already installed.

The browser is vital to Microsoft because of the Internet's burgeoning popularity and because of its future as its own software platform and a vehicle for electronic commerce.

Tuesday's hearing was seen by many observers as a prelude to larger questions about Microsoft's business practices and whether it enjoys an illegal monopoly.

Microsoft Chairman Bill Gates told CNNfn on Monday night that the software maker was willing to begin a public fight to protect its stance. "The people believe in allowing great products to move forward, and there's been a lot of misinformation put out by the competitors," he said. "They're willing to spend a lot of money, and so I guess that's a new area of expertise that we'll have to develop."

However, nearly a dozen state attorneys general have been looking at the company, and the Justice Department's top antitrust lawyer, Joel Klein, has pledged "an active and continuing investigation into several Microsoft business practices."

The Associated Press and Reuters contributed to this report.

Extended coverage:

• U.S. vs. Microsoft
• CNNfn: Microsoft Special Report

Related stories:

• CNNfn: Microsoft pleads its cause - April 21, 1998
  Fight against antitrust ruling starts up in earnest after appeals testimony
• CNNfn: Microsoft set for hearing - April 20, 1998
  Will Windows 98 make Tuesday's appellate court decision a moot point?
• Windows 98 crashes during Gates' Comdex demo - April 20, 1998
• CNNfn: Microsoft Continues Windows 3.1 Support - April 17, 1998
• CNNfn: Expanding the empire - April 16, 1998

Related sites:

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• Microsoft Corporation
  • Microsoft motions, letters and press releases
• U.S. Department of Justice
  • Justice Department filings against Microsoft

External sites are not endorsed by CNN Interactive.

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