Microsoft Says AOL Threat Blunts Charges

Microsoft Corp. sought to show at its trial Monday that it faces a competitive threat from America Online Inc. that makes antitrust allegations irrelevant, but the judge was skeptical about its line of questioning.

The Justice Department, satisfied that little damage had been done, decided against cross-examining Microsoft’s witness. The trial will break until Wednesday, when the software giant’s next rebuttal witness will be in Washington.

Judge Thomas Penfield Jackson told the lawyers at two bench conferences that he was not sure where Microsoft lawyer John Warden was going with his questioning, according to several people at those meetings.

Microsoft called AOL executive David Colburn, who previously had been a witness for the government. Microsoft lawyers said in advance they would attack Colburn’s credibility.

Warden had presented documents in an effort to show that AOL considered dumping Microsoft’s Internet Explorer in favor of a rival browser from Netscape, which has merged with AOL, but decided to renew the contract due to public relations concerns.

But Jackson said Colburn knew little or nothing about many of the documents introduced into evidence and suggested that perhaps AOL Chairman Steve Case would have been a more appropriate witness, according to people at the bench conferences.

Justice Department lawyer David Boies canceled plans to cross-examine Colburn, saying there was nothing he needed to add to Microsoft’s examination.

“The only reason to cross-examine a witness is to clarify a point that needs clarifying,” he told reporters. “I think that this witness was clear in his testimony--and helpful.”

The Justice Department and 19 states allege that Microsoft abused monopoly power in the market for the software operating systems that run most personal computers and has focused on allegedly unfair tactics used against Netscape.