Microsoft Statement Refutes Government’s Allegations

REDMOND, Wash., October 13, 1998 — Microsoft today issued a detailed response to the government’s major allegations against the company. In a 40-page document titled “Setting the Record Straight,” the company refuted the government’s charges and highlighted numerous instances in which the government ignored specific evidence that would disprove its allegations.

“Microsoft respects the government’s role in promoting a strong economy, but the facts show that its allegations against the company are groundless,” the company’s paper states. “As the Court of Appeals ruling shows, Microsoft’s decision to build Internet functionality into the Windows operating system was completely legal and good for consumers.”

“We are confident that the law and the facts are on our side. We will continue to focus all our energies on creating great software that improves people’s lives,” the paper concludes.

In a point-by-point rebuttal to the government’s major charges, Microsoft’s paper demonstrates that its cross-promotion agreements with other companies are completely legitimate and have not in any way foreclosed Netscape’s ability to distribute millions of copies of its software products to consumers. The paper also refutes the last-minute allegations the government added to its case following the June 23rd Appeals Court decision supporting Microsoft’s right to build browser technology into the operating system. The company cites previously unreleased evidence that shows both America Online and Intuit selected Microsoft’s browser technology over Netscape’s because Microsoft’s technology was clearly superior for their needs.

In addition to refuting the government’s specific allegations, Microsoft’s document shows how the government is trying to change its case at the last minute before the trial, and outlines numerous examples where the government has based its case on tiny snippets of information taken out of context.

“Since Microsoft has provided the Department of Justice with more than 3.3 million pages of email and other documents, it’s not surprising that the regulators have found a handful of snippets to quote misleadingly in order to attack Microsoft. But we are confident the facts will show that Microsoft has competed fairly and delivered important innovations and benefits to consumers,” the paper notes.

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