MS takes the stand for anti-trust trial

Observers predict six-week case will end up in the Supreme Court.

The historic anti-trust trial between Microsoft and the US Government began this week with industry observers predicting a protracted case that is likely to end up in the Supreme Court.

The software giant faces charges from the US Department of Justice and 20 US states claiming that it has abused its monopoly position in the personal computer software market. The allegations centred on the charge that the vendor illegally integrated its internet browser software with its operating system in a direct attempt to destroy rival Netscape's business.

But the government's case was undermined by a separate appeals court decision in June which ruled that Microsoft was entitled to integrate its browser with its OS.

In response, the DoJ broadened its action to concentrate on allegations that Microsoft tried to carve up various markets by forming illegal agreements with industry competitors. It also alleged Microsoft sought to maintain an unfair monopoly through contracts, forcing ISPs to promote Internet Explorer over rival products and that it prevented PC vendors from customising screens using applications other than those it created or endorsed.

Each side will be allowed to produce 12 witnesses. Netscape chairman Jim Barksdale, Apple vice president Avie Tevanian and Sun's James Gosling - the inventor of Java - as well as executives from Intel, America Online and IBM are included on the government's list.

Bill Gates, chief executive of Microsoft, will not take the stand. But testimony will be given by executives Jim Allchin and Brad Chase. John Rose, senior vice president of Compaq, will also appear.

THE GROWTH OF MICROSOFT

1975: Gates and Paul Allen develop BASIC for the MITS Altair computer - the first language written for a PC. Revenue: $16,000.

1976: BASIC sold to corporates. Partnership registered as Microsoft. Revenue: $22,000.

1977: Apple dominates PC market MS Revenue: $380, 000.

1978: Forms alliance with Japan's ASCII. Revenue: $1.3 million.

1980: Steve Ballmer joins Microsoft. Revenue: $7.5 million.

1981: IBM PC launched running MS Dos. Revenue: $16 million.

1983: Windows and Word launched. Revenue: $50 million.

1986: Floats at $21 per share rising to $28 after first day of trading.

IPO raises $61 million. Revenue: $200 million.

1988: Becomes No. 1 software vendor. Apple sues MS for copyright infringement. Revenue: $590 million.

1989: Buys a 20 per cent share in SCO. Revenue: $804 million.

1990: Launches Windows 3. FTC begins investigating anti-trust violations. Revenue: $1.2 billion.

1993: Wins lawsuit against Apple. Launches Windows NT. Revenue: $3.75 billion.

1995: Signs agreement with DreamWorks SKG. Launches Windows 95. Revenue: $5.9 billion.

1997: Acquires WebTV for $425 million. Invests $150 million in Apple.

US Justice Department begins action against MS. Revenue: $11.3 billion.

1998: Windows 98 launched. Revenue: $14.5 billion.