|
IBM: MSFT didn't coerce
|
 |
June 9, 1999: 2:44 p.m. ET
Under cross examination, IBM's Norris admits pact wasn't a 'requirement'
|
NEW YORK (CNNfn) - Facing cross-examination from Microsoft Corp. lawyers Wednesday, an IBM official admitted that a marketing pact between the technology giants didn't amount to coercion by Microsoft.
A day earlier the IBM executive, Garry Norris, said the two sides had an accord to give IBM a discount on its Windows operating system if Big Blue agreed not to place its own OS/2 system on IBM PCs.
Under tough questioning from Microsoft attorney Richard Pepperman, Norris admitted there was no language in the Microsoft-IBM accord that amounted to a "requirement" on IBM (IBM) about its use of OS/2.
However, Norris said, such an agreement would have the effect of "killing" OS/2 in the marketplace.
Earlier this week, Norris said Microsoft balked at IBM's inclusion of its own OS/2 operating system in its PCs. He also testified Microsoft wanted to charge IBM $75 for each copy of Windows 95, or a higher price than Microsoft charged such favored PC makers as Compaq Computer Corp (CPQ).
Also in his Tuesday testimony, Norris used notes from the spring of 1997 to corroborate the core of the government's case -- charging Microsoft leveraged its monopoly power with Windows to carve out market share for the Microsoft Internet Explorer web browser.
Shares of Microsoft (MSFT) rose 2-7/8 to 82-1/4 shortly after 2 p.m. ET on the Nasdaq stock market.
|
|
|
|
|
 |
|
