Jury hears Microsoft competition suit

By DAVID PITT

DES MOINES, Iowa

A judge on Friday told jurors they must accept as fact that a federal court found in 1999 that Microsoft holds a monopoly over computer operating systems and that it restricted computer manufacturers' ability to use competing systems.

Jurors in a class-action antitrust case began hearing the case against Microsoft Corp. on Friday after listening to Polk County District Court Judge Scott Rosenberg read more than 100 pages of jury instructions over nearly five hours.

The lawsuit claims Microsoft violated Iowa's competition laws and seeks about $330 million for Iowans who have purchased the software maker's products since 1994.

Plaintiffs' attorney Roxanne Conlin must prove that Microsoft's acts caused financial harm to Iowans who bought the computer software and if so, how much harm.

She said she'll show that the company used its monopoly power to exclude competition and control prices and that it conspired with other companies to restrain trade, maintaining what she called a chokehold on software competitors and computer manufacturers.

"It isn't illegal to be successful," Conlin said in opening remarks. "We applaud that. ... But you can't freeze out competitors and punish and retaliate against people who cooperate with competitors. Microsoft did all that and more."

Conlin warned jurors that she would say some unflattering things about Microsoft and its billionaire founder Bill Gates, who serves as company chairman.

She acknowledged that jurors indicated in pretrial questioning that they had positive attitudes toward Microsoft and Gates.

"I think that some of what I have to tell you will be difficult for you to accept," she said. "Keep an open mind."

Gates is expected to testify in the case in January.

Conlin's first 3 1/2 hours of opening arguments delved deeply into computer industry history and how Microsoft fought off competitors attempting to design rival software.

Microsoft attorney Rich Wallis said many of the allegations Conlin is making are 15-20 years old.

"This is ancient history. The four allegations in this case were addressed and resolved in a government case many, many years ago," he said. "That case was resolved and Microsoft takes its corporate responsibilities very seriously."

He said the company is complying with all agreements it made with the government in the case.

Wallis said the case is about whether Iowans paid fair prices for computer software.

"We think the evidence will show that they did and that they got a good value for their money," he said.

The jury of seven men and five women have been told the case will likely last about six months.