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Compaq exec denies threat
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February 19, 1999: 3:30 p.m. ET
Witness says AOL, not Microsoft, was concerned about Netscape browser
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WASHINGTON (CNNfn) - A Compaq Computer Corp. executive Friday disputed government allegations that Microsoft threatened to terminate Compaq's Windows license if the company continued to feature Netscape Communications Corp.'s Web browser on its PCs.
The Justice Department and 19 states have accused the Redmond, Wash.-based software giant of using its monopoly power with the Windows operating system as a weapon to coerce companies to use its products over competitors' offerings.
But John Rose, senior vice president and general manager of Compaq 's (CPQ) enterprise computing group, said the real threat regarding Netscape 's (NSCP) Navigator browser came from America Online Inc. (AOL).
Rose said the online service provider threatened to terminate a deal with Compaq if the computer maker continued to display a Navigator icon on the desktop instead of AOL's Internet service provider, GNN.
Until it acquired Netscape in November, AOL's preferred browser was Microsoft 's (MSFT) Internet Explorer.
Focus on threats
Threats from Microsoft have been a consistent theme in the government's cross examination of Rose. Thursday's session featured fireworks after lead Justice Department attorney David Boies asked Rose if Compaq had violated an agreement with Be Inc., a maker of a niche computer operating system.
Boies asked Rose if Compaq had given Microsoft confidential product information from Be, violating a nondisclosure agreement between the companies.
Rose said he knew nothing about the situation. Compaq's lawyer, William Costen, then stood up and called Boies's question a " cheap, vile stunt."
But Jean Claude Gassee, Be's chief executive officer, told CNNfn that he had received a call last November from a Compaq executive, informing him that a Compaq official had divulged some of Be's confidential information to Microsoft.
Compaq, Gassee said, apparently leaked the information to get on Microsoft's good side.
Rosen next on the stand
Judge Thomas Penfield Jackson adjourned the trial for the week after convening its first Friday session. Microsoft will call Daniel Rosen, the company's general manager for new technology, as its next witness when the trial resumes Monday morning.
In his written direct testimony, Rosen rebutted a key government charge that Microsoft suggested dividing the browser market in a meeting with Netscape executives. Rosen portrayed Microsoft's negotiations with Netscape as cordial and said any plans for Netscape to target different markets came from the company's own executives.
Microsoft shares were up 13/16 at 146-9/16 in late-afternoon trade. 
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