Microsoft facing US court showdown

The US government has outlined a sweeping prosecution case against Microsoft, the world's largest software company, in the antitrust lawsuit which is due to begin next week.

The Justice Department, along with 19 states and the District of Columbia, said they would prove that Microsoft had "illegally preserved its dominance" of personal computer software and now threatened to "extend that dominance to other markets".

Microsoft outlined its defence yesterday, rejecting the government's charges of illegal conduct. "Microsoft will show that its actions have been completely legal and have resulted in significant benefits to customers," the company said.

In court papers filed yesterday, prosecutors stressed the broad scope of the allegations against Microsoft.

The company is accused of using "a variety of exclusionary acts and predatory conduct" to protect its monopoly in Windows, the operating software that drives more than 90 per cent of personal computers.

Microsoft is alleged to have feared its monopoly would be weakened by development of internet software by Netscape Communications, which allows computer users to browse the worldwide web.

It is also accused of using its monopoly position to impede the development of Java, a new programming language designed to run software on different operating systems.

Microsoft allegedly built a network of agreements with the computer industry to exclude Netscape and push up its rival's costs, at the same time as distributing its own browser software for free to undermine Netscape's revenues. The Justice Department claims Microsoft used its market power to induce even large companies such as Apple and Intel to stop supporting Netscape.

The US government and states are asking the court to order Microsoft to drop its exclusionary contracts with computer makers and Internet companies. It is also demanding that Microsoft either stop shipping its own browser with Windows, or distribute Netscape's browser alongside its own.

Speculation mounted on Wednesday that the case may be delayed by four days to October 19 to allow both sides to complete interviews with witnesses, but the court is strongly opposed to further delays.