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Microsoft battle heats up
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August 31, 1998: 9:09 a.m. ET
Company wants internal Netscape messages; U.S. wants new evidence
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NEW YORK (CNNfn) - Microsoft Corp. has subpoenaed internal documents from an arch rival to gain the upper hand in its antitrust suit, while government regulators are planning to ask a federal judge to admit new evidence in the landmark case, according to published reports.
Microsoft has demanded "flame mail" messages from Netscape Communications Corp. (NSCP) to illustrate that it was poor management or weak products that led to Netscape's declining share in the browser market, according to Monday's Wall Street Journal.
The government has argued that Microsoft's predatory business practices led to Netscape's decline.
The Journal said Microsoft has subpoenaed internal electronic forums run by Netscape employees. A small circle of Netscape engineers use one forum, known as "really bad attitude," to post angry messages -- known as flame mail -- about their workplace and products.
Microsoft has taken a page out of the government's strategy. Federal regulators have based much of their case on internal Microsoft memos and e-mail messages in their attempts to prove Microsoft planned to use its power to stifle competition in the computer industry.
U.S. wants new evidence admitted
Meanwhile, the Justice Department and 20 states plan to ask Judge Thomas Penfield Jackson to admit new evidence into their antitrust case against the software giant, according to the Seattle Times.
The paper reported the request could be made as early as Monday, when the government is scheduled to reply to a Microsoft motion requesting that Jackson dismiss the case.
The Seattle Times said the new allegations will include charges that Microsoft:
- Pressured Intel Corp. (INTC) to exclude software from Netscape in Intel products.
- Attempted to divide the market for audio-video software with Apple Computer Inc. (AAPL).
- Doctored its Windows operating system so it wouldn't work with a competitor's operating system.
- Secured an exclusionary agreement from Seattle-based RealNetworks Inc. (RNWK) to keep its audio-video software out of the hands of some Microsoft competitors.
Jackson must determine what new evidence can be permitted before the trial, which is scheduled to begin Sept. 23.
Separately, Microsoft Chairman Bill Gates gave his pretrial testimony last Thursday and Friday at the company's Redmond, Wash., headquarters.
The Seattle Times reported Friday that Gates told government lawyers that he knew nothing about the government's charge that Microsoft in 1995 tried illegally to carve up the Internet-software market with Netscape. Gates is scheduled to provide additional testimony Wednesday.
Microsoft (MSFT) shares fell 4 to close at 105-1/4 in Friday trading. 
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