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Microsoft fires back
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July 28, 1998: 7:10 p.m. ET
Company files counterclaim in state case, says browser integration planned
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NEW YORK (CNNfn) - Microsoft Corp. Tuesday filed a counterclaim to an antitrust lawsuits filed by the federal government and 20 states, calling the suits' charges "completely groundless."
Microsoft also is seeking to force the states to repay legal costs the company has incurred as a result of those battles.
The filings represent the first official response by the Redmond, Wash.-based software maker to the lawsuits filed May 18. The company essentially rebutted all of the key allegations made by the government.
The 20 states seek to give computer makers greater freedom to control the boot-up screen consumers see when they start their computers and to make other alterations to Windows. The states also want to give computer makers the freedom to unbundle Internet Explorer from Windows 95 and 98.
Microsoft said the state claims are circumvented by federal copyright law that gives the software maker the right to mandate that licensees use its technology only in unmodified form.
Company: Browser integration planned
The company also denied a key assertion of the Justice Department, disputing government claims that it integrated Internet Explorer into Windows solely to hurt browser rival Netscape Communications Corp.
Microsoft said it had planned to integrate Internet browser technologies into the Windows operating system before browser rival Netscape Communications Corp. was founded in 1994.
"We plan to demonstrate in court that Microsoft was already planning to include the browser in the operating system as far back as 1993, well before Netscape was even founded in April 94," Microsoft spokesman Mark Murray said.
"In bringing the suit, we believe the government has made a choice that's not in the best interest of consumers. We believe consumers would be better served if Microsoft could get back to technology and better serving consumers," Murray said.
Microsoft also denied it signed exclusionary contracts with Internet providers and Web publishers that sought to prevent partners from distributing Netscape Navigator.
Microsoft emphasized that more details will be disclosed by Aug. 10, when the company responds to the government's motion requesting a preliminary injunction.
"Technically, this is simply what's called the 'answer' to the complaint. So it is not Microsoft's full response and all the company's legal arguments," Murray said.
"If you do take the time to read through the document, it will provide a road map to Microsoft's arguments in refuting the case," Murray said.
On Aug. 24, the states and federal government are expected to file their response to Microsoft's motion. In late August, both sides will begin filing pretrial motions. A pretrial conference is expected to take place in early September just before the trial begins.
In addition, Microsoft plans to argue that its software beat out Netscape's product in 19 out of 20 independent reviews.
"The government is alleging the only reason Microsoft is gaining consumer popularity is we must be doing something wrong. I think the facts speak for themselves," Murray said.
Microsoft (MSFT) shares closed down 4-1/2 to 112-1/4.
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