Microsoft Met Needs, Intuit Chief Says

Intuit Corp.’s chief executive acknowledged that his company decided to add Microsoft Corp.’s Internet Explorer to its Quicken money management program because the software giant had a version that met its needs, not just because Microsoft could provide other benefits to his company.

Testifying on the first day back from a holiday break in the Microsoft antitrust trial, William Harris also said Intuit chose Microsoft’s Web browser when it realized a rival could not meet deadlines.

Harris has testified that he felt compelled to choose Microsoft’s product over Netscape Communications Corp.’s browser so his company could win a place on Microsoft’s coveted “desktop” space.

The Justice Department and 19 states allege that Microsoft used a monopoly on its Windows operating system to compete unfairly with others and in particular that it blunted competition from Netscape.

Harris acknowledged under cross-examination that his company switched from the Netscape browser when it turned out that Microsoft was far more likely to provide what Intuit needed in a timely way.

“Was Microsoft more likely [than Netscape] to meet your time restraints?” asked Microsoft lead attorney John Warden.

“That’s correct,” Harris replied.

Microsoft delivered a Web browser that was “componentized”--that is, broken into convenient building blocks that Intuit could use as it saw fit with Quicken.

Netscape was unable to meet the deadlines to provide its version of a componentized system.

In testimony earlier in the trial, America Online Inc. senior executive David Colburn said his company had chosen Microsoft over Netscape not only because of a componentized browser but also to win a place on the Windows desktop that users see when they turn on their computer.

Harris was the 11th of 12 government witnesses as the landmark antitrust trial against Microsoft begins its 10th week after a two-week recess for the holidays.

Intuit, like some other companies, is both a partner and a rival of Microsoft. Intuit’s Quicken competes with the Microsoft Money program.

Harris said earlier Monday that Compaq Computer Corp. broke a contract with his firm to put Quicken on its desktop.

Harris did not testify about why Compaq might have broken the contract but said Microsoft has a “choke point” that affects other hardware and software makers in the personal computer arena and can bend them to its will.

“Compaq was going to abrogate the contract with us,” Harris said. “We complained to Compaq and they told us that was simply the way things were.”

Eventually, Intuit made a deal so that Quicken and Microsoft Money would both be provided on Compaq’s computers. Harris said Intuit did not sue Compaq.