Microsoft on Trial: Browser blockade an 'exaggeration'

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
The government's key economic witness in the Microsoft Corp. antitrust trial Thursday said that although Microsoft used monopoly power to force Netscape Communications Corp. from the market for Web browsers, it was an "exaggeration" to say Netscape could no longer use computer makers and Internet service providers to distribute its main product. The concession may weaken government arguments the company has effectively blocked Netscape from distributing its product to consumers. But it also capped a morning in which Massachusetts Institute to Technology economist Franklin Fisher attacked the credibility of Michael Lacovara, his inquisitor at the trial. Lacovara tried to show that, despite exclusive distribution deals between Microsoft, computer makers and Internet service providers, Netscape could still market its browser to consumers at large. The Internet and even deals with computer makers, he said, made distribution easy. He asked Fisher whether it was a "viable channel" for distribution. "I don't know what 'viable channel' means," Fisher replied. "It's not something that makes up for the foreclosure of other channels." The Sullivan & Cromwell attorney cited merger documents submitted by Netscape that showed "reported client distribution" of 160 million downloads every year, or roughly 1.6 copies of Netscape Navigator for every Internet user on earth. Another document obtained by America Online Inc. investment banker Goldman Sachs from Netscape showed visitors to Netscape's Web site averaged 261,000 downloads daily at the start of the trial last October. Lacovara suggested that was more than enough for Netscape to succeed. Fisher conceded the numbers were large, but also misleading. For one thing, he said, many of those downloads may go the same users who upgrade several times a year. What's more, he added, large numbers of downloads aren't successful. Lacovara insisted that wasn't likely. After all, he said, there were no qualifications appended to those download figures, and the documents were submitted under penalty of law. Fisher, visibly irked, replied that Netscape CEO James Barksdale had already testified that no one at Netscape knew how often "downloads" were successful. Lacovara insisted the downloads had to be successful. Fisher responded tartly. "I expect if they believed those numbers on their face, they'd be talking about big adoption of the Netscape browser," he said. "I don't believe that, I don't believe they believe that, and I don't believe you believe that." Lacovara volleyed back: "Perhaps I don't, but perhaps I don't for a different reason." Fisher expanded on his earlier comments: "The question is not whether these numbers are accurate; it's what they translate into." Last February, Microsoft's own executives suggested they translated into literally nothing. Then, Microsoft Vice President Brad Chase conceded that even though millions had downloaded browsers from Microsoft and Netscape, neither channel seemed to be increasing the number of users for either company. From March 1998 to Sept. 1998, Microsoft documents showed, the number of Netscape users who got their browser from the Web held steady at 6.7 million. Microsoft Internet Explorer users who got their browsers from the Web, meanwhile, actually fell from 2.9 million to 2.8 million over the same period. At the same time, the number of IE users soared 48.1 percent from 13.5 million to 20 million. Netscape users edged up 7.4 percent from 27 million to 29 million over the same period. So where'd all the browsers go? They were used to upgrade older versions, Chase reasoned, and they went overseas. Some users may have decided not to use the browsers they got, he said, or perhaps their phone lines were interrupted during download. Excerpts from a March 1998 deposition of Microsoft executive Joe Belfiore reinforced the testimony. "There's tons of feedback that downloading takes too long, is too hard. The number of hours that it takes to download these components is incredibly discouraging to people, often fails and the result is people don't get improved user experience at all." Lacovara returned to another section of the documents a short time later. Netscape executives last autumn estimated that 22 percent of computer makers distributed the company's browser with their machines, while 24 percent of customers of the nation's 20 largest Internet service providers used Netscape's Navigator. Fisher, only minutes before, had estimated Netscape was bundled with six percent of new computers sold. The 22 percent number, he said, evidently included a Compaq deal that was struck during the trial and gave consumers the choice to use Netscape's Navigator preinstalled.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

JCB33

How dare film makers, artists or anybody that invests in creativity stop us pirating their works for free. I want to be able to walk into my local...

1 hour ago by JCB33 on ACTA stumbles in Germany
Moley

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

3 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
greycynic

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

3 hours ago by greycynic on Ten flawed products that derail productivity
GrueMaster

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

5 hours ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint
Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

6 hours ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint
bdantas

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

6 hours ago by bdantas on A tale of two distros: Ubuntu and Linux Mint
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

7 hours ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

7 hours ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Moley

For Gnome 2 die-hards, it is possible to add icons to the bottom panel (or top top panel, if you prefer) which provide the exact Gnome 2...

8 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
ramwellian

Your comments would seem pretty naive and immature. Your 'solution' appears to be, "gee, let's all just give in to the hackers and give them...

8 hours ago by ramwellian on Cloud computing security: no more oxymoron?
BugStalker

"Interesting thought ... If you installed Win7 as a dual boot on a machine that previously only had Linux, and it wrecked your Linux installation,...

8 hours ago by BugStalker on Windows 7 Declares War on GRUB
whs001

This is an excellent summary of Ubuntu and Mint and the interface differences between them. Most such articles take a very partisan position for...

8 hours ago by whs001 on A tale of two distros: Ubuntu and Linux Mint
Moley

@ewallace. Not so clear. Anyone can obtain the text, for example from here http://www.ustr.gov/webfm_send/2379. I support ACTA so long as it and...

9 hours ago by Moley on ACTA: Facts, misconceptions and questions
45283

I think WinRT is fantastic. I just wish it was an option for people that didn't want to go through Microsoft's App Store with its attendant...

12 hours ago by 45283 on Why Windows 8 needs architectural hygiene for WOA
Burn-IT

Nine people? £30m? Who's back pocket is that lot going in? And IF they say it is for new buildings, what about all the ones the government has...

13 hours ago by Burn-IT on Police set to launch three £30m e-crime hubs
ewallace

Just to be clear, nobody knows what is in the text of ACTA, here is a photograph of the text of ACTA http://twitpic.com/8h9iju as submitted to the...

13 hours ago by ewallace on ACTA: Facts, misconceptions and questions
fgvrg56

Unfortunately main issue is that ASUS is refusing to accept that they make some mistake on this version of asus Transformer prime. 1 - GPS sensor...

14 hours ago by fgvrg56 on Asus Eee Pad Transformer Prime Wi-Fi & GPS problems?
Ben Woods

@Marcus A fair question. Just talked with Archos which said it was working on an announcement for next week....

15 hours ago by Ben Woods on Archos confirms G9 Ice Cream Sandwich update schedule
Marcus Karlsson

Any update on this, considering the claimed "first week of February"?

16 hours ago by Marcus Karlsson via Facebook on Archos confirms G9 Ice Cream Sandwich update schedule
apexwm

Bill Goodrich : Just as al_langevin pointed out, with Windows Server 2008 there is no Services for Macintosh anymore. It's gone, not available....

1 day ago by apexwm on Windows Server 2008 drops the ball for Mac compatibility