[SATLUG] NYTimes.com Article: Ex-Gateway Executive Says Microsoft Bullies PC Makers

[satlug@satlug.org]

This article from NYTimes.com 
has been sent to you by demeler@biochem.uthscsa.edu.


A long known fact - now enters into the "States vs. Microsoft" trial. That's at least part of the reason why you couldn't get Dell and Gateway to supply Linux computers at one time, and if you wanted a refund for Windows, you wouldn't get it.

-Borries

demeler@biochem.uthscsa.edu

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Ex-Gateway Executive Says Microsoft Bullies PC Makers

March 22, 2002 

By BLOOMBERG NEWS


 

WASHINGTON, March 21 (Bloomberg News) - The Microsoft
Corporation (news/quote) bullies computer makers by
withholding discounts if they promote products that
threaten its Windows monopoly, a former Gateway Inc.
(news/quote) executive testified today on behalf of states
seeking tough antitrust remedies against Microsoft. 

The executive, Peter Ashkin, said that the Justice
Department's proposed settlement of the four-year-old case
would not stop Microsoft from punishing computer makers
like Gateway that develop rival products. The states called
Mr. Ashkin to testify on the fourth day of what is expected
to be eight weeks of court hearings on their demands. 

In 1999 and 2000, Microsoft reduced discounts Gateway
received for the Windows operating system when Gateway
developed an Internet-connection device and a network
computer powered by the rival Linux system, Mr. Ashkin
said. 

"Our decision to choose Linux over Windows was often cited
by Microsoft executives when explaining why they considered
Gateway to be a `bad partner,' " Mr. Ashkin, who was
dismissed by Gateway in 2001, said in written testimony. 

The proposed settlement was negotiated last year after an
appeals court ruled that Microsoft illegally protected its
monopoly for Windows, which powers 95 percent of the
world's personal computers. California, Iowa and seven
other states, along with the District of Columbia, refused
to sign the plan that would require Microsoft to give
computer makers freedom to promote certain types of
products without retaliation. 

The settlement would not prevent "Microsoft from
retaliating in this situation," said Mr. Ashkin, now an
executive with AOL Time Warner (news/quote). 

Judge Colleen Kollar-Kotelly is reviewing the settlement
and the opposition by the states. She got the case after
the appeals court overturned an earlier judge's order to
break up Microsoft. 

Microsoft says the standard Windows contract for the top 20
computer manufacturers under the settlement would free
Gateway and other companies to promote programs that
compete with the Microsoft Internet Explorer Web browser or
the Windows Media Player. 

A Microsoft lawyer, Richard Pepperman, questioned Mr.
Ashkin's assertion that Microsoft once threatened to end
its license to load Windows onto PC's if it did not agree
to continue selling the popular Microsoft Office set of
word processing and spreadsheet programs. 

Was there "any paper trail" documenting the threats? Mr.
Pepperman asked. Mr. Ashkin replied that he did not write
memos or e-mail messages to warn colleagues of the threat. 

The states want to force Microsoft to make a version of
the Windows operating system that would let computer makers
easily extract the Internet Explorer Web browser and other
applications and substitute competing programs. 

http://www.nytimes.com/2002/03/22/technology/22SOFT.html?ex=1017804811&ei=1&en=d16e24bfb08d1dec



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