Microsoft Feared Rival Browsers, Exec Says

Microsoft Corp. integrated a Web browser into its Windows operating system to meet a threat from rival browsers, according to a Microsoft executive’s testimony introduced at the company’s antitrust trial Monday.

The testimony is important because the Justice Department and 19 states charge that Microsoft integrated Internet Explorer into Windows 98 primarily to compete unfairly against a rival browser made by Netscape Communications Corp. The government alleges that Microsoft used monopoly power in its Windows operating system to preserve and extend that power.

Microsoft testimony also revealed that most of the Web-like capabilities integrated into Windows 98 can be achieved by obtaining Internet Explorer 4 separately and installing it on any version of Windows 95.

While government attorney David Boies was cross-examining James Allchin, a senior vice president at Microsoft, he introduced testimony given by Microsoft executive Benjamin Slivka at a closed deposition on Sept. 4.

Slivka had said it was “absolutely” his testimony that Web browsers threatened the Windows operating system. Microsoft executives feared Web browsers could act as “platforms” to run computer programs, making the Windows system irrelevant.

“Was integrating the browser into Windows a response to that platform threat?” the questioner asked during the deposition.

“Yes,” Slivka replied.

On Monday, government attorney Boies then asked Allchin whether he agreed with Slivka that Microsoft integrated the browser into Windows to respond to a platform threat.

“Yes, with qualifications,” replied Allchin, talking about potential threats from IBM Corp.’s OS2 and a browser under development at Sun Microsystems Inc.

Boies wanted to know whether Allchin thought Netscape was a platform competitor.

“Yes, they were a platform competitor,” Allchin replied. “Absolutely.”

When Boies pushed, Allchin acknowledged, “Netscape was on our minds a lot because they were executing very, very well.”