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Witness blasts Microsoft
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June 2, 1999: 1:44 p.m. ET
Economics professor says alleged Windows monopoly harms consumers
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NEW YORK (CNNfn) - An economist testifying for the government Wednesday said Microsoft Corp.'s stranglehold on the personal computer operating system market has deprived consumers of choice.
The government is relying on the testimony of Franklin Fisher, an economics professor at the Massachusetts Institute of Technology, to show that Microsoft (MSFT) fits the legal definition of a monopoly.
In earlier testimony, Fisher -- who was recalled by the Justice Department as one of its three rebuttal witnesses for the landmark antitrust trial in Washington -- didn't emphasize consumer harm in his analysis of Microsoft's alleged monopoly power with its Windows operating system.
Microsoft has long argued that the government's claims of abusing its so-called monopoly has centered around the complaints of a few competitors, adding that consumers have benefited from Microsoft's products and pricing.
Under direct questioning from lead Justice Department attorney David Boies, however, Fisher emphasized that Microsoft's behavior does indeed harm consumers.
With its better-than-90-percent share in the operating system market, Fisher said, Microsoft has deprived consumers of a legitimate choice of what software they could use to control a PC's operations.
Fisher also testified that Microsoft's monopoly power has slowed the pace of innovation in the computer industry.
The Justice Department and 19 states sued Microsoft last year for using its alleged monopoly on the Windows operating system to stifle competition in other segments of the computer industry.
Microsoft shares were down 1-11/16 at 76-13/16 in morning trade.
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