IE integration caused users no harm

Microsoft's final rebuttal witness has stated to the Department of Justice trial that the software giant has not harmed consumers by integrating its browser software into Windows.

Professor Dean Schmalensee, Dean of the Sloan School of Management at Massachusetts Institute of Technology, repeated his earlier testimony that Microsoft's actions had actually benefited consumers rather than harmed them, as the US government is hoping to prove.

'There is no evidence that Microsoft's actions have harmed consumers. On the contrary, its actions have led to better and cheaper Web browsing software and platforms, and have contributed generally to the growth of the internet and portal sites,' he claimed.

Schmalensee added that consumers have also benefited from a reduction in price and an increase in quality of browsers and software because of Microsoft's entry into the browser market in 1995.

He claimed that the integration of Microsoft's Internet Explorer browser into the Windows operating systems meant it was a better product and has had very little effect on its cost.

But David Boies, the government's lead attorney, hit back while cross-examining Schmalensee, by questioning payments made to him from Microsoft.

The MIT Dean - who charges an hourly fee of $800 - admitted he had earned more than $550,000 from the company during the past two years.

Boies also questioned Schmalensee's statement that Microsoft did not prevent Netscape from distributing its software, by producing evidence that its sales had fallen from seven million to six million copies in the past six months.