sittingbrowseui.dll

204B.
MicrosofttieditsInternetExplorerbrowsertoWindows95andWindows98inordertoimpedebrowserrivalssuchasNetscape,andfornolegitimatepurpose93.
AcentralpartofMicrosoft'spredatorycampaigntopreventNetscape'sbrowserfromdevelopingintoaplatformthatcoulderodetheapplicationsbarriertoentrywasMicrosoft'styingofitsInternetExplorerbrowsertoWindows95andWindows98anditsrefusaltooffer,ortopermitOEMstooffer,anunbundledoption.
93.
1.
Internetbrowsersandpersonalcomputeroperatingsystemsareseparateproducts.
Consumersviewbrowsersandoperatingsystemsasseparateproductsanddemandonewithouttheother.
Inresponsetothatseparatedemand,Microsoftandothersoftwarefirmshavefounditefficienttopromoteanddistributebrowsersandoperatingsystemsseparately.
SeeinfraPartV.
B.
1;96-119.
93.
2.
Despitetheexistenceofthisseparatedemandforbrowsersandoperatingsystems,MicrosofttieditsbrowsertoitsWindowsoperatingsystem,andrefusedtoofferanunbundledoption,forthepurposeofhinderingthedevelopmentofNetscapeandotherbrowsers.
SeeinfraPartV.
B.
2;120-149.
93.
2.
1.
MicrosofttiedInternetExplorer1and2toWindows95byrequiringOEMstoobtainInternetExplorerinordertoobtainWindows95andprohibitedOEMsfromremovingInternetExplorer.
93.
2.
2.
Subsequently,fearingthatitsmerelycontractualtiewasnotsufficienttoeliminatethethreatthatNetscape'sbrowserposedtoitsoperatingsystemmonopoly,MicrosoftchangeditsproductdesigninInternetExplorer3and4tocomminglebrowserandoperatingsystemcode.
Still,recognizingthedesireofuserstohavetheWindows95operating205systemwithoutInternetExplorer,Microsoftdesignedandadvertisedaneasymeansforuserstoremovethebrowser.
Microsoft,however,refusedtoprovideaversionofWindows95fromwhichthebrowserhadbeenremovedortopermitOEMstoremovethebrowserfromthePCstheysold.
93.
2.
3.
MicrosoftdesignedWindows98tofurtherimplementthetyingarrangementbyeliminatingtheenduser'sreadyabilityto"uninstall"InternetExplorerandbyinterferingwithhisabilitytochooseadifferentdefaultbrowser.
93.
3.
ThereisnosoundjustificationforMicrosoft'styingInternetExplorertoWindows.
SeeinfraPartV.
B.
3;150-167.
93.
4.
Microsoft'styingarrangementandcontractualprohibitiononunbundlinginflictedsignificantharmoncompetitionandconsumers.
SeeinfraPartV.
B.
4;168-176.
1.
InternetExplorerandWindowsoperatingsystemsareseparateproducts94.
Internetbrowsersandoperatingsystems,includingInternetExplorerandWindows,areseparateproductsthataresoldinseparateproductmarkets.
Thereisseparatedemandforbothbrowsersandoperatingsystemsthatisefficientforsupplierstomeet.
a.
Browsersandoperatingsystemsareuniversallyrecognizedbyindustryparticipantstobeseparateproducts(1)AnInternetbrowsersupplieswebbrowsing95.
AnInternetwebbrowser("Internetbrowser")isasoftwareprogramthatenablesitsusertoview,retrieve,andmanipulatecontentlocatedontheInternet'sWorldWideWebandothernetworks(hereinafter"webbrowsing").
ii.
Microsoft'sowndictionarydefinesa"webbrowser"asa"clientapplicationthat206enablesausertoviewHTMLdocumentsontheWorldWideWeb,anothernetwork,ortheuser'scomputer;followthehyperlinksamongthem;andtransferfiles.
"MICROSOFTPRESS,COMPUTERDICTIONARY(3ded.
1997),at505(GX1050).
iii.
ProfessorFranklinFisherdefinedabrowseras"theapplicationthatpermitsuserstoaccessandbrowsetheworldwidewebor,forthatmatter,othernetworks.
"Fisher,1/6/99am,at5:3-5.
iv.
Dr.
Warren-Boultondefinedabrowseras"softwarethatenablescomputeruserstonavigateandviewcontentontheWorldWideWeb.
"Warren-BoultonDir.
68.
(2)Industryparticipantsviewabrowserasanapplication,andnotaspartofanoperatingsystem96.
Industryparticipants--includingconsumers,otheroperatingsystemvendors,ISVs,corporateinformationtechnologyofficers,academiccomputerscientists,andtheindustrypress(includingMicrosoft'sowncomputingdictionary)--universallyregardwebbrowsersasapplicationprogramsseparatefromtheunderlyingoperatingsystem.
96.
1.
Otheroperatingsystemvendors,eventhosethatbundleabrowserormultiplebrowserswiththeiroperatingsystemproducts,havealwaysconsideredthebrowsertobeaseparateapplication.
viii.
AppleComputer'sAvadisTevaniantestified:"ThefactthatInternetExplorerandNavigatorarebundledwiththeMacOSdoesnotmakethempartoftheoperatingsystem.
TheMacOSoperatingsystemwillcontinuetofunctionifeitherorbothofthesebrowsersareremoved.
.
.
[and]wepermitvalueaddedresellerstheflexibility.
.
.
toremovebrowsersorotherapplicationsTevanianDir.
26;seealsoTevanianDir.
8-9(explainingthedifferencebetweenoperatingsystemsandapplications).
ix.
JohnSoyringfromIBMtestifiedthat"IBMhasnotfounditnecessarytechnicallytointegratethebrowserwiththeoperatingsystem--thebrowserworkedwellrunningontheoperatingsystemlikeanyapplication.
"SoyringDir.
18.
x.
SunofficialsconsistentlydescribeSun's"HotJava"browserasan207"applicationthatperformsweb-browsingfunctionality.
"SasakiDep.
(played12/16/98pm),at22:5-18.
xi.
BrianCrolltestifiedthatthebrowserthatSunbundleswiththeSolarisoperatingsystemenvironmentis"anapplicationthatrunsontheenvironment.
That'sbasicallyontopoftheCDE.
"CrollDep.
(played12/15/98pm),at38:12-14.
Crolllaterdefinedan"application"as"apieceofsoftwarethatsitsontopoftheoperatingsystemandthatpeopleuseandperformsafunctionthattheyarelookingfor.
"Id.
at66:11-16.
xii.
RonRasmussenfromTheSantaCruzOperationtestifiedthatSCO"bundles"NetscapeNavigatorwithitsOpenServerandUnixwareproducts(RasmussenDep.
(played12/15/98am),at54:10-56:25),butthat"ourviewisthatthebrowserisanapplication.
"RasmussenDep.
(played12/15/98am),at64:20.
Rasmussenalsotestifiedthat"whenSCOsays'webundleafeature,'itmeansitsafeaturewhichisnotpartofthecorebaseoperatingsystemfunctionality.
Itmeansthatit'ssomethingthattheusercanchoosetoinstallorremove,andtheoperatingsystem,whoseprimaryfunctionitistoserveapplications,willstillfunctionproperly.
"RasmussenDep.
(played12/15/98am),at55:14-19.
96.
2.
Consumersalsoregardbrowsersasapplicationsratherthanaspartsofanyoperatingsystemproduct.
i.
JonKies,theSeniorProductManageratPackardBell/NEC,testifiedthat"browsersareconsideredbymostofourcustomersasathirdpartyapplication.
"KiesDep.
(played12/16/98am),at7:19-20.
ii.
GlennWeadockconcludedfromhisresearchandinterviewsthatcorporateinformationmanagers"typicallyconsiderbrowsersoftwareasapplicationsoftware,likeemailorwordprocessing,notasanoperatingsystemoraspartofaparticularoperatingsystem.
"WeadockDir.
22(collectingillustrativestatementsbycorporatemanagers).
Weadockfurthertestified:"NocorporatePCmanager,infactnooneoutsideoftheMicrosoftorganization,haseverdescribedaWebbrowsertomeasoperatingsystemsoftwareoraspartofWindows95oranyotheroperatingsystem.
"WeadockDir.
22(emphasisinoriginal).
iii.
Boeing'sScottVeseytestified:"Frommyperspective,Iwouldviewthemassoftwareapplicationsbecausetheyaretoolsthatare208usedtointerpretdataratherthanwhatIwouldnormallyviewastheoperatingsystem,whichisthecomponentsofsoftwarethatareusedtodirectlymanipulatethehardwarethatformsthatPC.
Theapplicationsareusedtointerpretorparsedata.
"VeseyDep.
,1/13/99,at284:15-285:9.
iv.
Netscape'sJimBarksdaletestified:"Consumershavehadnoproblemappreciatingthatbrowsersareseparateproducts,"and"stilldemandNetscapeNavigatorandNetscapeCommunicatorseparatelyfromanyoperatingsystemproducts.
"BarksdaleDir.
90.
96.
3.
WhentheindustrypressorprospectivecustomersevaluatethefeaturesandqualityofInternetExplorer,theyinvariablycompareittoNetscape'sNavigatorbrowserapplication,andnottoanyoperatingsystem.
i.
Barksdaletestifiedthat"theindustryasawholerecognizesbrowsersasseparateproductsfromoperatingsystems.
Browsermarketshareistracked(separatelyfromoperatingsystemmarketshare)bymanythirdpartyorganizations,suchasIDCandDataQuest.
The'browserwars,'referringtothecommercialbattlebetweenNetscapeNavigatorandMicrosoftInternetExplorer,arefrequentlyreportedoninthepress.
IhaveseenmanyproductreviewscomparingNavigatortoInternetExplorer;IhaveneverseenaproductreviewcomparingNavigatortoanyWindowsoperatingsystem.
"BarksdaleDir.
90.
ii.
AninternalGatewaypresentationfromMarch1997includesadetailed"BasicFeatureComparison"between"NetscapeandMicrosoftBrowserProducts.
"GX357(sealed).
iii.
ManypressreviewsofbrowsersdirectlyandexplicitlycompareInternetExplorertoNetscapeNavigatorandCommunicatorandtalkaboutthemasapplicationsindependentofanyparticularoperatingsystem.
See,e.
g.
,GX1262(1996ZDNetreview);GX1272(1997CMPnetreview);GX1274(1997PCWeekOnlinereview);GX1285(1997ComputerShopper.
comreview);GX1287(1998PCMagazineOnlinereview);GX1288(1998ZDNetNewsreview).
96.
4.
Expertsinsoftwaredesigndescribebrowsersasapplications,andnotas209partsofanyoperatingsystem.
i.
JamesGoslingofSunMicrosystemstestifiedthat"thebrowserisbestunderstoodasasoftwareapplication,notasapartofacomputer'soperatingsystem.
Thisistruebothasamatteroffunctionandasamatterofsoftwaredesign.
Asamatteroffunction,browsersperformtasksfortheenduserthatrelatetoobtaininganddisplayingcontentontheInternetorothernetworks.
UsersmaywishtochooseaparticularInternetbrowserthatbestfitstheirneeds,oriftheyhavenoneedto'browsetheWeb,'perhapsnobrowseratall.
Technically,browsersaretreatedbythecomputerlikeanyotherapplication.
InvirtuallyeveryoperatingsystemwithwhichIamfamiliar,theparticularfilesthatenablebrowsingareloadedintomemoryandusedinexactlythesamewayasothersoftwareapplications.
EveninWindows98,whereMicrosoftapparentlyloadssomebrowser-relatedfilesintomemoryevenwhentheusermayneverneedthatfunctionality,thesefilesareloadedinthesamewayasothersoftwareapplications.
Inessence,Microsoftsimplyshiftsthetimerequiredtoloadthebrowsercodefromwhenitisfirstneededbytheusertoeverytimethecomputerbootsup.
"GoslingDir.
38-39.
ii.
Goslingalsotestified:"Abrowserisanapplicationthat,likeaJVM,runsontheoperatingsysteminstalledonauser'scomputer.
Itpermitstheusertoaccessinformationencodedinhypertextmarkuplanguage,orHTML,andothertypesofcontentfoundontheInternetorothernetworks,andtonavigatearoundthesenetworks.
"GoslingDir.
34;Gosling,12/9/98pm,at41:20-23.
iii.
ProfessorFeltentestifiedthat"InternetExplorerispartofthedistributionwhichMicrosoftsellsunderthenameWindows98.
However,theirInternetExplorerisanapplicationwhichcanbeseparatedfromWindows98.
"Felten,12/14/98am,at30:21-24.
iv.
MarcAndreessentestifiedthat"Ican'tsaythatIeverthoughtthatabrowserwasnecessarilyseparatefromeverything.
ButitwouldcertainlybefairtosaythatIthinkthatthebrowserhasbeenseparatefromanoperatingsystem,forexample.
"AndreessenDep.
,7/15/98,at122:20-123:7(DX2555).
v.
EvenDr.
MichaelDertouzos,DirectoroftheLaboratoryforComputerScienceatM.
I.
T.
andformerlyonMicrosoft'switnesslist,agreed:"Historicallyandtoday,itisthecasethatbrowsersare210treatedasapplications.
"DertouzosDep.
,1/13/99,at414:2-4.
(3)Initsordinarycommercialconduct,MicrosofttreatsInternetExplorerasaseparateproduct97.
MicrosoftsimilarlytreatsInternetExplorerasaproductseparatefromitsWindowslineofoperatingsystemproducts.
(a)MicrosoftpromotesInternetExplorerasaproduct,positionsitincompetitionwithotherInternetbrowsers,andtracksitsmarketsharerelativetothoseofotherbrowsers97.
1.
MicrosoftdistributesInternetExplorerseparatelyfromWindowsinavarietyofdifferentchannels,includingretailsales,servicekitsforISVs,freedownloadsovertheInternet,andwithotherproductsproducedbothbyMicrosoftandthird-partyISVs.
i.
Oncross-examination,Microsoft'sCameronMyhrvoldconcededthatInternetExplorerisdistributedseparatelyfromWindowsin"many,manyways.
"Myhrvold,2/9/99pm,at37:7-38:7.
ii.
AninternalMicrosoft"TimelineSummary"GX669(sealed).
iii.
WhenaskedwhetherMicrosoftreleased"somethingcalledInternetExplorer3separatelyfromOSR2aroundthetimethatOSR2wasreleased,"CarlStorkansweredthatMicrosoft"releaseditontheWebandIbelievewereleaseditinsomekindofaretailInternetstarterkittypeofproductaswell.
"StorkDep.
,8/11/98,at38:18-23(DX2595).
97.
2.
FromtheintroductionofInternetExplorer1.
0inmid-1995tothepresentday,MicrosofthasalwayspromotedandmarketedInternetExplorerasaproductseparatefromWindows.
i.
Soyringtestifiedthat"MicrosoftitselfhasatcertaintimestreatedInternetExplorerasseparatefromWindows.
Inthefallof1997,Microsofthelda211majorpublicrelationseventtointroduceInternetExplorer4,independentofMicrosoft'spromotionofWindows.
"SoyringDir.
19.
ii.
IndescribingMicrosoft'smarketingplansforInternetExplorerinAugustof1995,YusufMehdiwrotethatMicrosoftwould"treatitasadistinctproductinthesenseofsettingupclearnews,reviews,andfeaturecoverageobjectives.
"GX153.
97.
3.
Microsoft'sinternalstrategydocumentsdealingwithInternetExplorerconsistentlydescribedNetscapeNavigator(andnotanyofMicrosoft'straditionaloperatingsystemcompetitors)asInternetExplorer's"primarycompetitor"andidentifiedgaining"browsershare"vis-a-visNetscapeastheprimaryobjectiveforInternetExplorermarketingefforts.
i.
An"InternetProductManagementStrategy"inNovember1995identifiesNetscapeasthe"primarycompetitor"andlistsasitsobjectiveto"MaketheIEthepeople'schoiceofWebbrowsersviaaggressivedistributionandpromotion.
"GX673,atMS66005881.
ii.
InnotesfromanoffsitemeetingamongtheInternetExplorerprojectteaminNovember1997,Microsoft'sChrisJonesdescribestheroleoftheInternetExplorerteamas"gainbrowsershare.
"GX364,atMS7004722.
iii.
InDecember1996,Microsoft'sDavidColewrote:"ThereisstillthemessageherethatInternetExplorerisstillabrowser,whereNavisgroupware.
NocreditforNetmeeting,mail,news,etc.
Weneedtochangethatperception.
"Microsoft'sYusufMehdirespondedthat"itisprobablyagoodexamplethoughoftheneedtohaveasinglegrouptakingoncommunicatorelsewewilnevergetthefullmessageacross.
Ihavethoughtmoreaboutourconversationandmorefirmlybelievethatyouneedasinglegroupandproductthatyoumarketagainstcommunicator.
ItmakessensetomethatthisusetheIEbrandandteambecauseofequity,experience,andrelevancyinproduct,team,andmarketing.
ThegroupwouldmarketIE4whichincludes:ActiveDesktop,Browser,Mail,News,Netmeeting,FrontPad,AdminKit,etc.
"GX658,atMS66010327.
iv.
InJune1997,ChrisJonessentamemotoBillGatesentitled"Howtogetto30%sharein12months.
"ThememocontainsalengthydiscussionofhowMicrosoftshoulddesignandmarketInternetExplorertotakemarketshareawayfromNetscape.
GX334,atMS980104679.
21297.
4.
InternalMicrosoftassessmentsofInternetExplorer'ssuccessinvariablycompareditsfeatures,performance,andmarketpenetrationtothoseofNetscapeNavigator.
i.
AMarch1997Microsoft"CompetitiveGuide"comparedthefeaturesofInternetExplorer4.
0againstthoseofNetscapeCommunicator.
GX477,atMS7004179.
ii.
ChrisJones'notesfromaNovember1997InternetExplorerteammeetingclaimsthat"[w]ehavewoneveryheadtoheadreviewagainstNetscape.
"GX364,atMS7004719.
97.
5.
Infact,thecontemporaneousdocumentsshowthatMicrosoftregularlytrackedInternetExplorer'smarketsharerelativetothatofNetscapeNavigator.
i.
AJanuary1998"IEInternationalBusinessReview"slidepresentationbreaksdown1997browsersharesinbothdomesticandinternationalmarkets.
GX815,atMS980202889.
ii.
AnOctober1996e-mailfromYusefMehditoPaulMaritzandothersreportscurrentbrowsershareasmeasuredbyweeklycalldowns,shareatrandomwebsites,andInternetExplorerdownloads.
GX344.
iii.
Seealsoe.
g.
,GX713(April1998MehdiemailcomparingInternetExplorerandNavigatorshareandnotingthat"48isabignumberandimpliesthatwehavecaughtNetscape");GX495(comparisonofInternetExplorerandNavigatorshare);GX700(same);GX708(same);GX713(same);GX714(same);GX714A(same);GX716(same).
(b)MicrosofttreatedInternetExplorerandWindowsseparatelyuntiltheissuearoseinlitigation(1)Beforelitigation,MicrosoftcalledInternetExplorerabrowserinitsordinarycommercialconduct98.
Intheordinarycourseofitsbusiness,MicrosofthasfrequentlydescribedInternetExplorerasabrowserapplicationratherthanapartoftheoperatingsystem.
i.
InaJuly1995memototheOEMs,MicrosoftdescribedInternetExplorerasa213"32-bitWindows95WorldWideWebbrowserandgraphicalFTPutility.
"GX36.
ii.
InDecember1995,BradSilverbergwrotetoBillGatesandPaulMaritzthatInternetExplorer3.
0"isastandalonewebbrowserthatrunsonWin95.
"GX37.
iii.
SeealsoGX141(Windows95wouldcontain"[a]llthenecessaryplumbing"toaccesstheInternet,includingaTCP/IPstackandsupportforthePPPandSLIPprotocols,andthatitwould"[s]upport[]popularthirdpartyInternetapplications,suchasMosaic").
99.
MicrosoftalsoenteredintoextensiveagreementswithPCOEMs,ISVs,ISPs,andICPsregardingtheplacementandpromotionofInternetExplorerthatwereseparatefromanyagreementsregardinglicensingtermsforWindowsandthatinvariablyreferredtoInternetExplorerasa"browser,"notasapartoftheoperatingsystem.
i.
ASeptember1996amendmenttoaMay1996licensingagreementwithCompaqrequiredCompaqto"OffertheMicrosoftInternetExplorerasthepreferredworldwidewebbrowserforusersofanyCOMPAQInternetProduct(s)listedinExhibitB[SupportSoftwareCDforCompaqDesktop,PortableandWorkstationProductsandCompaqResourceKitforMicrosoftWindowsNT].
"GX1130,atMSV0005706(Ex.
D,Amd.
1).
ii.
AJuly1996licenseanddistributionagreementwithCompaqrequiredCompaqto"OffertheMicrosoftInternetExplorerasthepreferredworldwidewebbrowserforusersoftheSupportSoftwareCDforCompaqDesktopProducts.
"GX1137,atMSV005747.
iii.
TheInternetSignUpWizardReferralandMicrosoftInternetExplorerLicenseandDistributionAgreementwithAT&T,datedJuly23,1996,GX1212,atMS65000435(Ex.
B,§6)(sealed).
iv.
TheAugust1995Internet-SignUpWizardReferralAgreementwithCompuServe214GX1144,atMS65001138(ExhibitB,Section5)(sealed).
v.
TheDecember1995InternetExplorerSourceLicense&DistributionAgreementwithCompuServerequiredthatCompuserveto"shiptheInternetExplorerasitsprimaryWorldWideWebbrowsersoftwareclientforWindows95.
.
.
.
"GX1125,atMS65000091.
vi.
AnAugust1996Internet-SignUpWizardReferralandMicrosoftInternetExplorerLicenseandDistributionAgreementwithEarthlinkGX1141,atMS65000015(ExhibitC,§6)(sealed).
vii.
AMay1996InternetExplorerAddendumtoStrategicRelationshipFrameworkAgreementwithMCIGX1132,atMS66008292(sealed).
viii.
ASeptember1996Promotion&DistributionAgreementwithProdigyGX1148,atMS650010000(Section3.
1)(sealed).
ix.
NumerousMemorandaofUnderstandingthatMicrosoftenteredwithmajorOEMsinJulyandAugustof1997providedsignificantinducementsforthoseOEMstopromoteanddistributeMicrosoft'supcomingInternetExplorer4browser,whichinitiallywasofferedanddistributedwhollyseparatefromanyoperatingsystemrelease.
See,e.
g.
,GX163(underseal)(8/29/97"MemorandumofUnderstanding("MOU")re:InternetExplorer4.
0,"GX1166(underseal)(7/21/97MOUwithDEC,similarlanguage);GX1168(underseal)(8/8/97MOUwithPackard-Bell,similarlanguage);GX1171(underseal)(8/20/97MOUwithDell,similarlanguage).
x.
Seealsoe.
g.
,GX856,atMS980100300(Section2.
3(d))(July1997Disney215ActiveDesktopagreement);GX1159,atTM000057(June1997HollywoodOnlineActiveDesktopagreement);GX1157,atMS980100570(Section2.
2)(June1997Intuitagreement);GX1153,atMS980100811(Section2.
1(a))(December1996Pointcastagreement);GX855,atWD0004(Section2.
3)(July1997WiredDigitalActiveDesktopagreement);GX1166(July1997IE4launcheventagreement).
100.
SimilarreferencestoInternetExplorerasa"browser"appearinMicrosoft'sinternalandexternalcorrespondencerightuptothepresentday.
i.
MicrosoftdescribesInternetExplorer5.
0asa"smaller,faster,morestablebrowser.
"GX688.
ii.
AnInternetExplorer5OEMMarketingReviewfromMay1998assertsthat"IEhasaround50%browsershare,"andthatendusers"viewbothbrowsersasparityproducts.
"GX233,atMS980125654.
(2)Sincelitigationbegan,however,Microsofthasmadeaconcertedefforttochangeitslanguageinordertoaiditslegalposition101.
Recently,however,inordertosupportitslitigationpositionthatInternetExplorerandWindows98arethesameproduct,MicrosoftofficialshavemadeaconcertedefforttorepositionInternetExplorerandchangetheterminologyusedbyMicrosoftpersonnel.
i.
WhenBillGateswaspreparingtotestifybeforetheSenateinMarch1998,hesentane-mailtotopMicrosoftexecutivessuggestingtheneedfora"survey.
.
.
whereISVsdeclarewhethertheythinkhavingthebrowserintheoperatingsystemthewayweareplanningtodoitmakessenseandisgood.
"GX377,atMS980122148.
NathanMyrhvoldrespondedthatthesurveywas"aGREATidea,"butthat"itisCRUCIALtomakethestatement.
.
.
wordedproperly.
Saying'putthebrowserintheOS'isalreadyastatementthatisprejudicialtous.
Thename'Browser'suggestsaseparatething.
IwouldNOTphrasethesurveyorotherthingsintermsof'putthebrowserintheOS.
'Insteadyouneedtoaskamoreneutralquestionabouthowinternettechnologyneedstomergewithlocalcomputing.
Ihavebeenprettysuccessfulintryingthisonvariousjournalistsandindustrypeople.
"GX377,atMS980122146(emphasisinoriginal).
ii.
Thatsamemonth,JamesAllchinwrotetoYusufMehdithathewas"veryconcernedoverhowIEispresentedinwin98(andNT5).
Eventhesimplethings216liketheAboutBoxmakesitappearseparate.
Furthermore,ourIEwebsiteneedsasweep.
.
.
whereweensureitisclearth[at]IEisjustacapabilityofWindows.
.
.
.
"GX378.
Mehdirespondedthattheywere"makinggoodprogressreviewingthelanguageofieasafeatureofwindowswiththewebteam.
(wedon'trefertoitasaproductorevenbrowser,itisbrowsingsoftware).
"GX378.
b.
Therecognitionthatbrowsersandoperatingsystemsareseparateproductsreflectsthemarketplacerealitythatconsumers,forawidevarietyofreasons,demandoperatingsystemsandInternetbrowsersseparately102.
Consistentwiththeuniversalrecognitionthatbrowsersandoperatingsystemsareseparateproductsandthatdifferentbrowsershavedifferentcharacteristics,manyconsumersdesiretoseparatetheirchoiceofoperatingsystemfromtheirchoiceofbrowser.
i.
ProfessorFishertestified:"ThereisamarketforInternetbrowsers.
BeforeMicrosoftgaveawayitsbrowserforfree,apriceforbrowserswasdeterminedinthemarketandthemarketcouldhavecontinuedtoperformthisfunction.
Thereissubstantialdemandforbrowsersthatisseparatefromthedemandforoperatingsystems.
BrowsersaredistributedseparatelyfromtheoperatingsystembyISPsandbyretailers.
Thereisdemandforoperatingsystemswithoutbrowsersandforoperatingsystemswithachoiceofbrowsers.
"FisherDir.
80.
ii.
AsurveyconductedbyCompaqinFebruary1998of283PCdecisionmakersatU.
S.
companiesfoundthat"About80%ofcompanieswipeorreformattheharddrivesofnewdesktops.
.
.
.
Theoperatingsystemre-installedmostoftenareOSR2andtheretailversionofWindows95.
LargebusinessesleanmoretowardtheretailversionofWindows95,"whichdoesnotincludeabrowser.
GX1242,at7.
iii.
Dell'sJosephKanickitestified:"'SomebusinessesandgovernmentcustomersprefernottohaveInternetExplorerpre-installedontheircomputersbecause,one,thecustomermayhaveitsownsoftwareorsoftwarestandardswhichdonotincludethelatestversionofInternetExplorer;two,thecustomermaywishtoinstallacompetitivebrowserinsteadofInternetExplorer;orthree,thecustomermaywishtopreventitsemployeesfromaccessingorattemptingtoaccesstheInternetorWorldWideWeb.
'"KanickiDep.
,1/13/99,at332:12-333:22(quotingKanickiDecl.
2).
217(1)SomeconsumersdemandbrowsersandoperatingsystemsseparatelybecausedifferentbrowsershavedifferentfeaturesandtheyprefertoobtainaPCcontainingonlythedesiredbrowser103.
AlthoughNetscapeNavigatorandInternetExplorerdeliverroughlycomparablefunctionalitytotheend-user,theyarenotidentical.
Eachprogramhasuniqueattributesthatmayappealtodifferentaudiences,andthereisconsiderabledisputeastowhichproduct'simplementationofeventheirsharedfeaturesissuperior.
i.
SeeinfraPartV.
B.
3.
c.
(1)(a);PartV.
B.
4.
c.
(2)Someconsumers,particularlycorporatecustomers,demandbrowsersandoperatingsystemsseparatelybecausetheyprefertostandardizeonthesamebrowseracrossmanyPCsandacrossdifferentoperatingsystems104.
Manycorporationsuseavarietyofdifferenthardwareandoperatingsystemplatformsinvariousdepartmentsthroughouttheirorganization.
i.
ScottVeseyofBoeingtestifiedthat"Boeingisamulti-platformcompanyandthatitsupportscomputersthatoperatewithanumberofdifferentoperatingsystems,"includingUnix,Macintosh,andavarietyofWindowsplatforms.
VeseyDep.
,1/13/99,at269:13-270:24.
ii.
Weadocktestifiedthatinhisinterviews,"somemanagers(includingthoseatInformix,Ford,FederalExpress,Boeing,andMorganStanley/DeanWitter)havestatedthattheirorganizationsdeployavarietyofoperatingsystemsandhardwareplatforms,andthereforepreferabrowserhavinggreatercross-platformavailabilityandcompatibility.
"WeadockDir.
24a.
105.
Suchorganizationsexperiencesignificantbenefitsintheformofincreasedproductivityandlowertrainingandsupportcostsfromstandardizingononebrowseracrossalloftheirvarioushardwareandoperatingsystemplatforms.
i.
Veseytestifiedthatthe"variousbrowserstandardizationorbrowseracquisition218decisionsthatBoeinghasmade"were"madeseparatelyfromdecisionsaboutacquiringanoperatingsystem,"andthathewould"prefer"tohave"theoptionofcontinuingtobeabletochoosewhatWebbrowserBoeingusesindependentlyfromanydecisionsBoeingmightmakeaboutwhatoperatingsystemtouse.
"VeseyDep.
(played11/17/98am),at52:12-53:14.
ii.
AninternalBoeingpresentationentitled"ARR525Recommendation:WindowsBrowserEvaluation"byScottVeseyinOctober1997identified"[p]latformsupport"asakeyissueandnotedthat"Solaris,HP-UX.
.
.
andAIXarestandardUNIXvariantswithinBoeing,andthatIE4.
0forUNIX/SolariswouldnotbeinproductionuntilQ198.
Incontrast,Communicator4.
0wasavailableonallplatforms.
"GX634,atTBC000537.
iii.
Veseytestifiedthatthe"NetscapebrowserwasaproductthatwecouldrunacrossalloftheplatformsthatwehadcurrentlyinstalledintheBoeingcompanybothWindows,Macintosh,andUnixworkstationsusingacommonsoftwareproductwithcommonuserinterface.
"VeseyDep.
,1/13/99,at271:6-24.
iv.
Microsoft'sJoeBelfioretestifiedthatMicrosoftmakestheuserinterfaceofthecross-platformversionsofInternetExplorerconsistentwiththeWindowsversiontodecreasetrainingcosts.
BelfioreDep.
,1/13/99,at369:13-370:21.
v.
Indiscussingthebenefitstoorganizationsfromhavingastandardwordprocessor,astandardspreadsheet,orastandardwebbrowser,Weadocktestifiedthat"[t]herearemanybenefits,manycostsavings,andconfigurationsavings.
Youhavebenefitstotheuserintermsofproductivity.
Theydon'tgetdistracted.
They--theycanlearnoneapplicationandusethattodowordprocessingortodowebbrowsing.
Therearealsoadvantagesintermsoftechnicalsupport.
Youdon'thavetoteachyourtechnicalsupportstaffallabouthowtosupporttwobrowsers.
Youcanteachthemhowtosupportonebrowserbecausethat'sthestandardinthecompany.
"Weadock,11/17/98am,at70:11-15;seealsoWeadockDir.
38-39.
vi.
JoeKanickiofDellComputerexplainedthat,inDell'sexperience,corporationsoftenwanttostandardizeonasinglebrowserfor"stabilityandforsupport.
Thetotalcostofownershipforthecorporationstabilizes.
Themorefrequentlyproductsarerevised,themoreexpensiveitisorpotentiallycouldbeforacorporationtostayupwiththoserevisions.
"KanickiDep.
,1/13/99,at331:3-332:10106.
Standardizingononebrowseralsopermitsanorganizationtodevelopspecializedinternalapplicationsorviewablecontentmorecheaplyandwithconfidencethatthoseresources219willbecompatiblewithallitsinternalsystemsthatfocusontheInternet.
i.
Veseytestifiedthat"thesingledefiningquality"thatmakesthewebvaluabletoBoeingistheability"toputanelectronicdocumentinoneplaceandhaveitbeaccessiblebyvirtuallyanybody,irrespectiveofplatform.
"VeseyDep.
(played11/17/98am),at23:13-19.
ii.
Veseytestifiedthat,ifBoeinghadtodeploybothNavigatorandInternetExplorer,itssupportcostswould"'behigherduetoacoupleofthings.
Probablyfirstandforemostwouldbethatthepotentialforawebapplicationdevelopertodevelopanapplicationthatdependedspecificallyonaparticularsite,fromtheenduserperspectivethatwouldpossiblybethebiggestimpact.
Theywouldhavetoknow.
.
.
whenI'massessingthisparticularwebsite,Ihavetousethisparticularbrowser.
Andtheniftheytriedtogotothatsitewithanalternativebrowser,theywouldn'tbeabletorenderwhatevercontentwasavailablethere.
Theotherreason,theotheressentialreason,wouldhavetodowith.
.
.
thelocaluseofthesoftware.
OntheWindows95desktopthereisadefaultbrowsersetting.
Andthedefaultbrowserbehavior,generallyspeaking,whenyouhaveIE4andNetscape4installed,youcanalternatebetweenhavingeithersetasthedefaultbrowser.
.
.
.
Insomecases,thosedefaultbrowsersettingsdobecomeconfusedandcanmakeitdifficultfortheusertogetaparticularbrowserconfiguredasthedefaultbrowser.
Sothatcanbecomeconfusingforendusers.
"VeseyDep.
,1/13/99,at288:2-289:11.
iii.
GlennWeadocktestifiedthat"companiesoftendevelopintranetsdesignedtoworkwitha--withaparticularbrowser.
"Healsotestifiedthat"ifsomethingworksandlooksrightinNavigator,itmaynotworkandlookrighttoemployeeswhoarerunningInternetExplorer.
"Weadock,11/17/98am,at73:15-19.
iv.
Weadocktestifiedthatuserssometimes"developtheirownapplicationsthat(ifusefulandwelldesigned)mayspreadthroughoutanorganization.
ThedevelopmentofintranetsinternalcompanynetworksbasedonInternettechnologieshasacceleratedthistrend.
Thegreaterthedegreeofsoftwarestandardization,thegreaterthelikelihoodthatsuchuser-developedapplicationscanworkproperlythroughouttheorganization.
"WeadockDir.
38.
v.
Weadocktestifiedthat"someorganizationsdeveloptheirowncustomsoftwarethatonlyworkswithaparticularbrowser,andthatcompatibilitywiththatcustomsoftwaremayprovideanongoingmotivationtousethatparticularbrowser.
"WeadockDir.
24c.
107.
Forthesereasons,acompanythatdesirestostandardizeonasinglebrowseracross220severaldifferenthardwareandoperatingsystemplatformswillwanttomakeitsbrowserchoiceindependentofthedecisiontopurchaseanyoneoperatingsystem.
i.
Weadocktestified:"Ifacompanyisdeciding,inpartatleast,onwhichbrowseritwantstostandardizeon,basedonavarietyofhardwareplatformsintheorganizationrunningdifferentoperatingsystems,thenit'saveryshortlogicaljumptostatethatcompaniesaremakingthisbrowserdecisionindependentfromthedecisionthattheymakeaboutanyoneoperatingsystem.
"Weadock,11/17/98am,at16:8-15.
ii.
Basedonhisresearchandinterviewswithcorporateinformationmanagers,GlennWeadocktestifiedthatorganizationsgenerallywanttomakebrowserdecisionsandoperatingsystemdecisionsseparately.
WeadockDir.
21;seealsoVeseyDep.
(played11/17/98),at52:12-53:14(Boeing).
Weadocktestifiedthatthereissubstantialdemandfortheoriginal(retail)versionofWindows95amongcorporations,"[b]ecausetheyhavethegreatestcontroloverwhatapplicationstheycaninstallontoit,becauseitisthecleanestversionofWindows95.
Itdoesn'tcontainsoftwarethattheydon'twant.
And,inparticular,itdoesn'tcontainInternetExplorer,whichtheymaynotwant.
"Weadock,11/17/98am,at62:12-20;Weadock,11/16/98pm,at24:23-25:4(testifyingthatsomeusersmayelecttoforegothetechnologicaladvancesoflaterversionsofWindowsandusetheretailversionofWindows95becauseitdidnotcomewithawebbrowser).
108.
Microsoftrecognizedthisseparatedemandforbrowserstandardizationacross,andindependentof,demandforoperatingsystems.
i.
DavidColeurgedhisWin32InternetExplorer4teamtoassisttheteamsworkingontheWin16,UnixandMacversionsofInternetExplorersince"[g]ettingthecrossplatformversionsdoneiskeytomarketshareonallplatforms,includingWin32.
"GX60,atMS7004624.
ii.
AJanuary1998draftofaTransitionPlanforInternetExplorer5forMacintoshincludedthefollowing:"MicrosofthasnowputoutseveralversionsofInternetExploreronseveralplatforms.
Whilethewin32versionofIEhascontinuedtomakeseriousstridesintermsoffunctionality,andmajorinroadsintermsofmarketshare,thecross-platformversionshavenotmadethesamemarketsharegains.
Whilethelackofcross-platformmarketshareistroubling,thenegativeimpactonwin32IEmarketshareisunacceptable.
.
.
.
Aswetalktomoreandmorecustomers,itisbecomingincreasinglyapparentthatthecross-platformbrowsersdirectlyaffectoverallIEmarketshareexponentially.
"GX370,atMS980121263.
221iii.
InNovember1997,BrianHallreportedonafocusgroupstudyofInternetExplorer4andNavigator4users,listingasa"keytakeaway"that"Thedesireisforone'corebrowser'withsimilarUIandsamecontentandfeaturesupportacrossplatforms.
"GX219,atMS7006361.
iv.
PaulMaritzwroteinaJune1996e-mail:"WehavenodesiretosellanythingonUNIX.
However,owingtocustomerdemand,wearegoingtohavetoprovideanIEsolutiononUNIX.
"GX653,atMS980156372.
v.
AccordingtoMicrosoft'sowndata,corporations"wantourofferingstobeasconsistentaspossible""toavoidconfusionamongtheirusersandsupportstaff.
.
.
[t]heywantuniformityonauthoring,deployment,management,andgeneralbrowseruserinterface.
"GX217,atMS980109147.
(3)Someconsumersdemandbrowsersandoperatingsystemsseparatelybecausetheymaywishtoupgradeonewithoutupgradingtheother109.
ManyconsumersandOEMsdemandbrowsersandoperatingsystems,includingInternetExplorerandWindows,separatelyinordertohavetheabilitytoupgradetheoperatingsystemwithoutchangingbrowsers.
i.
Microsoft'sBillVeghtetestifiedthatMicrosoftconsideredshippingWindows98withInternetExplorer3insteadofInternetExplorer4,becausetherewasOEMdemandforhardware-relatedimprovementslikeUSBsupportthatwerereadyforinclusionbeforeIE4wascompleted.
VeghteDep.
,1/13/99,at783:2-786:8.
ii.
Gateway'sJamesVonHolletestifiedthatGatewayaskedMicrosofttoreleasesupportfornewhardwaredevices,including"AGPgraphics,DVDdisks,anddualdisplays,"forWindows95,insteadofholdingthosefeaturesforWindows98.
VonHolleDep.
,1/13/99,at302:6-303:12.
iii.
AninternalGatewaylist222GX357,atGW026522(sealed).
iv.
Dell'sJosephKanickitestifiedthatwhencustomerswhodonothavethecurrentversionofInternetExplorerareupdatingtheiroperatingsystems,theymaynotwanttoupgradetothenewversionofInternetExplorer.
KanickiDep.
,1/13/99,at335:17-336:2.
110.
Conversely,consumersmaywanttoobtainupgradestotheirbrowserapplicationsoftwarewithoutalteringtheiroperatingsystem.
i.
AsGlennWeadocktestified,"changingoperatingsystemsoftwarehasagreaterpotentialforcreatingproblemsthanchangingasingleapplicationdoes,inasmuchasallapplicationsrelyontheoperatingsystem"andachangetotheoperatingsystem"cancauseunwantedproblemswithotherapplicationsstillresidingonthesystem,orconfusionamongusersnowconfrontedwithchangestotheoperatingsystem.
"WeadockDir.
32g.
ii.
Microsoft'sChrisJonesacknowledgedthatcustomersmaywanttoget"thelatestbrowsingtechnology"buthavetheir"startmenuandtaskbar.
.
.
remainthesame.
"JonesDep.
,1/13/99,at552:22-24.
iii.
VeghtetestifiedthatitremainsimportantforMicrosofttoshipInternetExplorer5asaseparateproduct"becausetherewillbeaclassofcustomersthatmaywanttogetthosecapabilitieswithoutupgradingtheiroperatingsystem.
"VeghteDep.
,1/13/99,at787:5-13(emphasisadded).
(4)Somecustomersdemandbrowsersandoperatingsystemsseparatelybecausetheywantnowebbrowsingcapabilityatall111.
Someconsumersdemandbrowsersandoperatingsystems,includingWindowsandInternetExplorer,separatelybecausetheywantnowebbrowsingcapabilityatall.
NotallPCuserswantbrowsers,butallneedoperatingsystems.
i.
Microsoft'sDavidColeacknowledgedthatMicrosoft"hadfeedbackfrom223corporatecustomersthatwantedtopreventaccesstotheInternet,sowhen.
.
.
theybuyanewmachinefromaPCmanufacturer,theywanttheabilitytoremoveeasyaccesstotheInternetsotheiremployees,youknow,aren'tspendingtheirtimeoutontheWebdoingwhatever.
"ColeDep.
,1/13/99,at395:1-20.
ii.
JosephKanickifromDelltestifiedthathebelievedsomeofDell'scustomersdidnotwantInternetExplorerbecause"thecustomermaywishtopreventitsemployeesfromaccessingorattemptingtoaccesstheInternetorWorldWideWeb.
"KanickiDep.
,1/13/99,at333:11-22.
iii.
Weadocktestifiedthatsomeorganizations"maywishtomakeitdifficultforcertainemployeestoaccessthepublicInternet,inordertoreducetheamountofunproductivetimeemployeesspend'surfingtheNet'onsubjectsunrelatedtotheirjobs.
Withoutabrowser,accessingtheInternet'sWorldWideWebisimpractical.
"WeadockDir.
23a.
iv.
Sun'sCurtisSasakitestifiedthat"manycorporatecustomers.
.
.
wanttorestricttheiruser'saccesstotheweb"andthatSunhasbeentoldbyvariouscustomers,includingtheFloristTradeBureauandseveraluniversities,that"manyofthemdidnotwanttheiremployeestohaveaccesstowebbrowsing.
"SasakiDep.
(played12/16/98pm),at26:25-28:22.
v.
Soyringtestifiedthat"[some]enterprisecustomerswanttocontroltheapplicationswhichcanbeusedbyemployeesintheenterprise,anddonotwantemployeestospendtime'surfingtheinternet.
'"SoyringDir.
17.
vi.
Whenaskedwhetherhewas"awareofanycustomerswhodidnotwanttoinstalltheWebbrowserbecausetheydidn'twanttheircustomerssurfingtheweb,"IBM'sJeffreyHowardansweredthat"Iamawarethatwedidhaverequestscominginfromourfieldpersonnelthattalkedtothoselargecustomerswhoreportedbacktousethattheywantedtorestrain,youknow,whatapplicationscustomerscouldgetto,andspecificallyhavingtheiremployeessittingandsurfingtheWebonworktimewasafearthatwassometimesvoiced.
"HowardDep.
,8/31/98,at115:20-116:6(DX2572).
vii.
PackardBell/NEC'sMalRansomtestifiedthat"Typically,ourcorporatecustomersdon'twantordon'tnecessarilywantaccesstotheInternetorbrowserloadedontheiremployees'machines,sothey'vegotthechoiceofwhattheydo.
"RansomDep.
(played12/16/98pm),at74:4-8.
viii.
Compaq'sJohnRoseestimatedthatonly70%ofbusinessesarerunningawebbrowserontheirdesktops.
Rose,2/18/99pm,at53:22-54:3.
224ix.
Sun'sJamesGoslingtestifiedthatforsystemswithoutadisplay,likeaserver,acustomerwouldhavenouseforabrowser.
Gosling,12/10/98pm,at60:17-61:2.
111.
1.
EveninorganizationsthatusetheInternetregularly,therewillusuallybeatleastsomeemployeeswhodonotneedbrowsingfunctionality.
i.
IBM'sJohnSoyringtestified,forexample,thatsomeofIBM'scustomerswantedOS/2withoutabrowserfor"systemsusedbybaggagehandlersorbanktellers.
"SoyringDir.
17.
ii.
Weadocktestifiedthat"evenwhenwelookatacompanythatisinvestingheavilyinintranettechnology,suchasFederalExpress,.
.
.
theydon'tnecessarilyhavebrowsingsoftwareorbrowsersonalloftheirPCs.
TherearejustsomecategoriesofuserswhomayhavenoneedtoaccessanintranetortheInternet.
"Weadock,11/16/98pm,at15:15-25.
111.
2.
Althoughacorporationmightrestrictanemployee'saccesstotheInternetinotherways,suchasbyremovingthemodemorethernetconnectorfromcertainPCsorbylimitingInternetaccesstoaproxyserver,suchalternativesareoftenlessefficientthansimplyusingaPCwithoutabrowser.
i.
Weadocktestifiedthatanemployeemightneedamodeminstalledfordial-uptelecommuting,eveniftheemployerwishedtorestricthisorheraccesstotheWeb.
Weadock,11/17/98am,at41:17-42:16.
ii.
Weadockalsotestifiedthat"thosemethodsdon'taddresstheresourceuseissuesofhavingbrowsersonthe.
.
.
PCs.
Theyalsodon'taddresstheissuesofuserconfusionthatmightarisefromattemptingtorunsoftwarethatisthereandperhapsaccessible,eventhoughI'vetriedtoremoveitandcouldn't,andthenpickupthephoneandcalltheHelpdeskandsay,'Hey,What'sthis'Sotherearelotsofreasons,otherthanjustresourceuse,thatcompaniesmaywantnobrowsersoftwareonaPC.
It'sgenerallyacceptedpracticeamongITmanagersinbusinesseslargeandsmalltoputtheleastamountofsoftwareonacomputerthatwilldowhattheirusersneedtodo.
Youjustsaveallkindsofcoststhatway,allthewayfromresourceusetosupportandtraining.
"Weadock,11/17/98am,at42:3-16.
iii.
JeffreyHowardtestifiedthatthereareotherwaystopreventusersfrombrowsingtheWebfromOS/2,butthat"mostcustomers,particularlyinthe225WarpVersion3andWarpConnecttimeframe,usuallyfoundharddiskspacetobeatapremiumandtriedtohavetheminimalamountofcodethattheycouldinstalledonthedesktopmachineitselfjustfromamanagementstandpointandfromasupportstandpoint,becauseyouneededthespaceavailableforswapfilesandpaging,etcetera.
"HowardDep.
,8/31/98,at118:21-119:4(DX2572).
(5)OEMsaresurrogatesforendusers;andthus,fortheabovereasons,theytoodemandbrowsersandoperatingsystemsseparately112.
BecausethepersonalcomputerOEMindustryisextremelycompetitiveandOEMsmustsatisfyconsumerdemandtostayinbusiness,OEMsalsodemandbrowsersandoperatingsystems,includingInternetExplorerandWindows,separately.
i.
GatewayrepeatedlyaskedMicrosoftforaversionofWindows98withwebbrowsinguninstalled,inpartbecausetheywere"concernedthattheinstallationofthefullMSproduct(includingchannels)resultsinamuchslowersystemperformanceifthecustomerchoosesanalternatebrowserafterfullinstallationonIE4.
"GX1073,atMS980204593.
ii.
JonKiestestifiedthatPackardBell/NECtookadvantageoftheJanuary1998stipulatedremedytooffersomeofitsPCmodelswithoutInternetExplorer.
KiesDep.
(played12/16/98am),at6:11-19.
iii.
KanickitestifiedthatbecauseDell'scustomers"maywishtoinstallacompetitivebrowserinsteadofInternetExplorer,"Dell'slicenseagreementwithMicrosoftpermitsit"toinstallacompetitivebrowseronamachinethatisshippedwithWindows95orWindows98.
"KanickiDep.
,1/13/99,at336:4-19.
iv.
MalRansomtestifiedthatbecausemanyofPackard-Bell/NEC's"commercialcustomersdon'twantaccesstotheInternetorbrowserloadedontheiremployees'machines,"fortheVersalineofnotebookcomputersthosecustomers"getthechoiceofwhichbrowsertopre-install,"ifany.
RansomDep.
(played12/16/98pm),at73:13-74:11.
v.
Compaqalsomadeeffortstosatisfyitscustomers'demandforbrowsersotherthanInternetExplorer.
SeeinfraPartV.
B.
2.
c;130.
1.
226c.
Tosatisfythisseparatedemand,firms—includingMicrosoft—havefounditefficienttosupplybrowsersandoperatingsystemsseparately113.
Tosatisfythisseparatedemand,bothoperatingsystemvendorsandbrowservendorssupplybrowsersandoperatingsystemsseparately.
(1)InternetExplorerandotherbrowsershavebeen,andcontinuetobe,suppliedseparatelyfromoperatingsystems113.
1.
Browsersuppliershavefounditefficienttosupplybrowsersseparatelyfromoperatingsystems.
i.
Netscape'sBarksdaletestified:"Indeed,Netscapedoesnotsellanyoperatingsystemproducts,andwasabletosellmillionsofbrowserlicensestoconsumersandenterprisesseparatelyfromanyoperatingsystem.
"BarksdaleDir.
90.
ii.
JamesGoslingtestified:"TheHotJavabrowserisasoftwareapplicationthatwasreleasedbySunin1995.
AtthetimetheHotJavabrowserwasdeveloped,SuncontemplatedundertakingtherevisionsandimprovementsnecessarytomaintainitasacompetitiveproductfordesktopcomputerssuchasWindowsPCs.
However,afterMicrosoftannouncedthatitsInternetExplorerbrowserwouldalwaysbegivenawayforfree,Sunconcludedthatitmadelittlebusinesssenseatthattimetocompetevigorouslytosellaconsumerbrowserapplicationtocompeteagainstaproductthatwasbeinggivenawayforfree.
"GoslingDir.
37;Gosling,12/3/98pm,at80:17-81:3(testifyingthatSunneversoldHotJava"asacommercialbrowser"because,"giventhatthemarketpriceforbrowsers,thosedays,seemedtobezero,ithardlyseemedlikeasensiblethingtodo").
iii.
Dr.
Warren-Boultonnotedthat"Opera,whichhaslimitedpresenceinsomedistributionchannels,isdistributedindependentlyofanoperatingsystemproduct.
"Warren-BoultonDir.
76.
113.
2.
Microsoftalsofound,andcontinuestofind,itefficienttosupplyitsbrowserseparatefromanyofitsoperatingsystemproductsinnumerouschannels.
227113.
2.
1.
MicrosofthasconsistentlyoffereditsInternetExplorerbrowseronastandalonebasisatretail,bydownloading,andthroughISPs,OLSsandISVs.
i.
SeesupraPartV.
B.
1.
a.
(3);99.
113.
2.
2.
Inresponsetocompetitionfromotherbrowsers,andinordertosatisfydemandforastandardbrowserproducttorunonmultipleoperatingsystemsandtherebyincreaseInternetExplorer'smarketshare,MicrosoftalsocreatedstandaloneversionsofInternetExplorerthatrunonotheroperatingsystemsandearlierversionsofWindows.
i.
AMicrosoftfocusgroupstudyinNovember1997showsthat"Win32browserqualitiesarereflectedontootherplatformversioninusers'minds"andusers'desire"isforone'corebrowser'withsimilarUIandsamecontentandfeaturesupportacrossplatforms.
"GX218,atMS7006353.
ii.
ChrisJoneswroteinNovember1995:"Tocompetewithnetscape,weneedtohavecrossplatform(Win3.
1,Win32,Mac)clientswhichsupporttheNTserver(log-on,security,etc.
).
"GX334,atMS980104685.
iii.
Barksdaletestified:"TocompetewithNetscape,Microsoftbeganofferingcross-platformversionsofInternetExplorer.
"BarksdaleDir.
91.
iv.
JamesAllchinstatedthatInternetExplorerfortheMacintoshisanapplication,andnotapartofanyoperatingsystem.
Allchin,2/2/99pm,at13:8-12.
v.
DeanSchmalenseetestifiedthatInternetExplorerfortheMacintoshandforWindows3.
xareapplications,andnotpartoftheoperatingsystem.
Schmalensee,1/20/99am,at20:14-21:9.
113.
2.
3.
Exceptforminordifferencestocomplywithuserinterfaceguidelinesforthoseothersystems,andevidencingthattheyrespondtothesameseparatedemandforInternetbrowsers,thenon-WindowsversionsofInternetExplorersupplythesamebrowsing228functionalityand"lookandfeel"totheenduserasInternetExplorerforWindows95/98.
i.
ProfessorEdwardFeltentestified:"TheWindows98andSolarisversionsofIEWebbrowsingoffernearlyidenticaluserinterfaces,andtheMacOSversionoffersthesameuserinterfacemodifiedtomeettheuserinterfaceguidelinesspecifiedbyAppleforMacintoshsoftware.
"FeltenDir.
75;FeltenDir.
82(testifyingthatauser'swebbrowsingexperiencewiththeversionsofInternetExplorerrunningontheSunSolaris,AppleMacintosh,andWindows98issubstantiallysimilar).
ii.
JoeBelfioretestifiedthatMicrosoftmakescross-platformInternetExplorertoappealtocompanieswithnon-Windowsoperatingsystemsandmakestheuserinterfaceofthecross-platformversionsconsistentwiththeWindowsversiontodecreasetrainingcosts.
BelfioreDep.
,1/13/99,at369:13-370:21.
iii.
Microsoftcreatedthecross-platformversionsofInternetExplorerspecificallytoappealtoorganizationsthatwantedtousethesamebrowseracrossmultipleplatforms.
SeesupraPartV.
B.
1.
b.
(2);110.
(2)Operatingsystemvendors—atleastthosewhich,unlikeMicrosoft,lackmarketpower—supplyoperatingsystemsseparatelyfrombrowsers114.
Operatingsystemsareefficientlyprovidedseparatefrombrowsers,andeveryoperatingsystemvendorotherthanMicrosoftsuppliesoperatingsystemsseparately.
(a)Someoperatingsystemvendorsofferconsumersthechoiceoflicensingtheoperatingsystemwithoutabrowser115.
Anumberofoperatingsystemvendorsofferconsumersthechoiceoflicensingtheoperatingsystemwithoutabrowser.
115.
1.
SundoesnotbundleanybrowserwithitsJavaOSoperatingsystem.
i.
SasakitestifiedthatSunlicensesitsJavaOSproductseparatelyfromitsHotJavabrowser;"theproductJavaOSshipstoourlicensees,ourlicenseescanalsolicensethebrowsertechnology[calledHotJava],andits229uptothemtodecidewhetherornottheyincludeitintheirproductornot.
"SasakiDep.
(played12/16/98pm),at21:25-23:6.
SasakialsotestifiedthatthepriceofJavaOSdoesnotincludeabrowser(SasakiDep.
(played12/16/98pm),at26:8-16)--andthatonly21outofSun's36JavaOSlicenseesalsolicensedtheHotJavabrowser.
SasakiDep.
(played12/16/98pm),at26:17-24.
115.
2.
Lucentoffersanunbundledoption.
i.
JamesFrascatestifiedthatLucent's"viewisthatthewebbrowserispartoftheapplicationsuite,nottheoperatingsystem"andthatLucenthaslicensedversionsofInfernowithoutawebbrowser.
FrascaDep.
,1/13/99,at137:15-19;FrascaDep.
,1/13/99,at141:19-22;FrascaDep.
,1/13/99,at143:8-9;FrascaDep.
,1/13/99,at144:16-145:9(LucentwouldlicensetoahardwareOEMaversionoftheInfernoproductwithoutthebrowseriftheOEMwantedtodistributeathird-partybrowser).
115.
3.
SantaCruzOperationoffersanunbundledversionofitsoperatingsystem.
i.
WithUnixware7,amulti-userproduct,SCObundlesonly"asingle-userlicensefortheadministratortoreadOnlineDocandtomanagethewebserver.
"AdditionalbrowserlicensesforadditionalusersmusteitherbepurchasedfromSCO"asanoptionalproduct"oracquiredelsewhere.
RasmussenDep.
(played12/15/98am),at59:23-60:15.
115.
4.
Calderaoffersanunbundledversionofitsoperatingsystem.
i.
BryanSparkstestifiedthatCalderaallowsOEMstoofferanunbundledversionofitsoperatingsystem.
Heexplained:"Itdoesn'tmakesenseforusto"requireOEMstoincludethebrowser.
Hecontinued:"Theresellerknowswhatthecustomerneedsbetterthanwedo.
Heisclosertothecustomer.
Welethimdecidethat.
Heisbuyingtheboxedproductandhasthebrowser,butwedon'tmandatethatheinstallitorconfigureit,ifhedoesn'twishto.
"SparksDep.
(played12/16/98am),at50:12-23.
(b)OperatingsystemvendorsotherthanMicrosoftsometimesbundleoneormorebrowserswiththeirsystemsbutallowVARs,OEMs,orenduserstoremovethemornottoinstallthem116.
OperatingsystemvendorsthatlackMicrosoft'smonopolypower,andhenceitsincentivetoengageinanticompetitiveconductthatthwartsconsumerdemand,donotimpose230contractualortechnicalrestrictionsonOEMs'orendusers'abilitytoremoveabrowser.
116.
1.
NooperatingsystemvendorotherthanMicrosoftplacesrestrictionsonitscustomers'abilitytoremoveanunwantedbrowser.
i.
Allchintestified,"asIsitheretoday,Idon'tknowofany"operatingsystemvendorotherthanMicrosoftthatbarsitscustomersfromremovinganybrowser.
Allchin,2/3/99am,at45:11-19.
116.
2.
Evenwhenothervendorsofferabrowserwiththeiroperatingsystem,theyallowOEMsandenduserstoremoveitornottoinstallit.
116.
2.
1.
AlthoughIBMincludesabrowserasanapplicationinitsOS/2Warpversion4operatingsystempackage,theinstallationprocessallowstheusertochoosewhetherornottoinstallit.
IBMalsopermitsanyotherOEMorvalue-addedreseller(VAR)sellingcomputerswithOS/2toremovethebrowserbeforethesale.
116.
2.
1.
1.
IBMdoesnotconsiderthebrowsertobepartoftheoperatingsystem.
i.
JohnSoyringtestifiedoncross-examinationthatIBM'sWebExplorer"isnotpartoftheOS/2operatingsystemitself.
.
.
.
Wediddevelopitseparatelyasaseparateprogram.
ItisincludedintheOS/2Warpproductpackage.
AndwesetitupasaselectivelyinstallableandselectivelyremovableapplicationprogramthatcanbeeitherusedwithornotwithOS/2.
"Soyring,11/18/98am,at21:12-22:2;seealsoSoyringDir.
14-18.
ii.
SoyringalsotestifiedthatOS/2performsproperlyasanoperatingsystemwhetherornotanywebbrowserisinstalled.
Soyring,11/18/98pm,at78:5-7.
116.
2.
1.
2.
IBMpermitsuserstonotinstallortoremovetheirbrowsers.
231i.
SoyringtestifiedthatusersofIBM'sOS/2operatingsystemhavealwaysbeenfreenottoinstall"WebExplorer,"toremovethatbrowserafterinstallation,andtoinstallacompetingbrowserifdesired.
Soyring,11/18/98pm,at77:12-17.
ii.
IBM'sDanaO'Nealtestified,"O'NealDep.
,8/31/98,at72:3-7(DX2578A)(sealed).
116.
2.
1.
3.
IBMmakesthebrowserremovablefromitsoperatingsystembecauseitrecognizesthatthereisaseparatedemandforbrowsersandoperatingsystems.
i.
JeffreyHowardtestifiedthathewas"awarethatwedidhaverequestscominginfromourfieldpersonnelthattalkedtothoselargecustomerswhoreportedbacktousthattheywantedtorestrain,youknow,whatapplicationscustomerscouldgetto,andspecificallyhavingtheiremployeessittingandsurfingtheWebonworktimewasafearthatwassometimesvoiced.
"HowardDep.
,8/31/98,at115:20-116:6(DX2572).
116.
2.
1.
4.
IBMincludesabrowserinitspackagingforOS/2forthesamereasonitbundlesotherapplicationslikeawordprocessor:becauseithelpsconvincecustomersthatkeyapplicationsexistforOS/2,whichisnecessaryinordertoovercometheapplicationsbarriertoentry.
i.
SoyringtestifiedthatIBMchosetobundleNetscapeNavigatorinparticularwithsomelaterversionsofOS/2"because,atthattime,itsbrandwasthemostpopularbrandrecognitionintheindustry.
And,again,itgoesbacktotheproblemgwewerefacingbeforeinthatnot--popularapplicationsjusthadn'tbeenbuil[t]forOS/2.
Sowethoughtby,one,deliveringcustomersearlier,and,secondly,gettingamajorbrandtorecognizeandadoptthe232OS/2operatingsystembyofferingaproductwouldbeanadditionalspurfor--orstimulanttoselladditionalOS/2copies.
Soweenteredintoalicensingagreement.
WespentmillionsofdollarswithNetscapetobeabletomakethathappenandwepackageditaspartofthenextgenerationofOS/2Warp,whichisOS/2Warp4intheshrink-wrappedproduct.
"Soyring,11/18/98am,at39:3-19;Soyring,11/18/98am,at44:9-45:1(explainingthatthesamereasoningdroveIBMtobundlewordprocessing,spreadsheet,database,andpersonalinformationmanagementappletsinOS/2);Soyring,11/18/98pm,at75:10-21(discussingusers'perceptionsthattheywouldhave"adifficulttimefindingapplications"forOS/2).
116.
2.
2.
ApplebundlesbothInternetExplorerandNetscapeNavigatorwiththeMacOSbutpermitsbothendusersandvalueaddedresellerstodeleteeitherorboth.
116.
2.
2.
1.
Appledoesnotconsiderabrowsertobepartoftheoperatingsystem.
i.
Tevanian'sdefinitionofanoperatingsystemsaysnothingaboutbrowsingcapability.
Hedefinedanoperatingsystemas"theprimarysoftwarethatcontrolsacomputer.
Theoperatingsystemprovidesvariousbasicservicesforacomputersuchasprocessmanagement,userinteraction,datamanagementfortheharddisk,networkinterfacesandcontrolofperipheraldevicessuchasprintersandkeyboards.
"TevanianDir.
8.
116.
2.
2.
2.
AppleallowsusersandresellerstoremoveeitherNavigatororInternetExplorerorbothiftheywishanddoesnot"hard-code"anythinginitsoperatingsystemtorequiretheuseofaparticularbrowser.
i.
Apple'sTevaniantestified:"TheMacOSoperatingsystemwillcontinuetofunctionifeitherorbothofthesebrowsersareremoved.
Asnotedabove,wepermitvalue-addedresellers('VARs')theflexibilitytoreconfigureoursystemstomeettheirdirectcustomers'needs.
WeprovideVARstheflexibilitytoremovebrowsersorotherapplications,andtoreconfiguretheMacintoshdesktoptoaddresswhatthey233perceivetobetheircustomers'desires.
"TevanianDir.
26.
ii.
AftertheCourtaskedTevanianwhetheritis"possibleforyoutoextricateyourbrowserfromoperatingsystemwithoutotherwiseimpairingtheoperationofthesystem,"Tevanianreplied,"Yes,otherthanyoucan'tbrowsetheweb.
"Tevanian,11/5/98pm,at67:10-15;Tevanian,11/5/98pm,at70:9-17(testifyingthattheoperatingsystemwouldremainintact).
116.
2.
2.
3.
Appleallowsuserstoremovethebundledbrowsersbecauseitunderstandsthatthereisseparatedemandforbrowsersandoperatingsystems.
i.
Uponbeingaskedwhetherhefeltthattherewasa"separatemarket"forInternetbrowsers,Tevanianstatedthathethought"it'sfairtosaythereisamarket.
Therearesomepeoplewho,first,theywouldselecttheoperatingsystem;thentheymightselectthebrowser,andnotwanttomakethedecisiontogether.
Sointhatsense,it'sseparatefromthedesktopcomputermarketingeneral.
"Tevanian,11/4/98pm,at18:3-22.
116.
2.
3.
Sunbundlesits"HotJava"browserwithitsSolarisoperatingsystembutpermitsenduserstoremovethatapplication.
116.
2.
3.
1.
Sundoesnotconsiderabrowsertobepartoftheoperatingsystem.
i.
CurtisSasaki'sdefinitionofanoperatingsystemsaysnothingaboutprovidingbrowsingcapability.
Hesaysthatanoperatingsystemincludes"akernelwhichcontrolshowthingsaremanagedintermsofmemory.
ItalsocontrolstheI/Ofunctionality,suchastalkingtoanetwork,talkingtoyourkeyboard,displayingthingsonthescreen.
So,that'scalleddevicedrivers.
SoallofthatiswhatIwouldconsideranoperatingsystem,aswellasasetofAPIswhichareontop,whichapplicationdeveloperswriteto.
"SasakiDep.
(played12/16/98pm),at17:16-25;SasakiDep.
(played12/16/98pm),at26:8-10("Q::IsthebrowserpartoftheoperatingsystemA:No.
It'sseparate.
Q:When--234are--doesthepriceoftheJavaOSproductincludeabrowserA:No.
Itdoesnot.
Q:ArethereseparatepricesforbrowsersA:That'scorrect.
").
ii.
Sun'sJamesGoslingsimilarlyexcludesbrowsingcapabilityfromhisdefintionofanoperatingsystem.
Hesaysthatan"operatingsystemhastwoprimaryfunctions:(1)tointeractwithandcontrolthecomputer'sprocessorandotherhardware(monitors,keyboards,diskdrives,etc.
);and(2)tointeractwith,andexecuteinstructionsfrom,softwareapplications,generallythroughaseriesofapplicationsprogramminginterfacesknownas'APIs.
'"GoslingDir.
8.
Basedonthisdefinition,Goslingconcludesthat"thebrowserisbestunderstoodasasoftwareapplication,notaspartofacomputer'soperatingsystem.
"GoslingDir.
38;Gosling,12/9/98pm,at30:23-31:9.
116.
2.
3.
2.
Sunpermitsandmakesiteasyforend-users,VARs,andOEMstoremovebundledbrowsersfromtheoperatingsystemiftheysodesireanddoesnot"hard-code"anythinginitsoperatingsystemtorequiretheuseofaparticularbrowser.
i.
GoslingtestifiedthatSunincludedthe"HotJava"browserontheCD-ROMwithitsSolarisoperatingsystem,but"itwasabsolutelyareplaceable,repluggableapplication.
Wedidn'ttellanybodythatitwasnonremovable,likeanyoftheotherpiecesthathappenedtobethere.
Customerscananddousereplacementsforjustabouteverything.
"Gosling,12/9/98am,at38:16-25.
ii.
BrianCrolltestifiedthatwhenanOEMoraVARlicensesSolaris2.
6,itisnotrequiredtoshiptheHotJavabrowsertoitsendusercustomers.
SunprovidestwomeansforOEMsandVARstoofferanunbundledversionoftheoperatingsystem:"AtonelevelyoucanchoosenottoaddthatpackagewhichhastheJavabrowseraswellasotherthings,ifthat'sthefirstchoice.
Thenthesecondchoiceis,onceyouhaveloadedit,youcangothroughthede-installprocesstotakeaway.
"CrollDep.
(played12/15/98pm),at66:22-68:4.
235iii.
Moreover,CrolltestifiedthatOEMsandVARsarepermittedtosupplytheirendusercustomerswithadditionalbrowsersoradifferentbrowseriftheychoosetodosobecause"thereisnoreasonforustokeepthemfromdoingthat.
"CrollDep.
(played12/15/98pm),at68:5-13.
v.
CurtisSasakistatedthatwhentheJavaOSisinuseonanetwork,"thesystemadministrator.
.
.
canremovethebrowserandnotaffectJavaOS.
"SasakiDep.
(played12/16/98pm),at29:3-30:7.
116.
2.
3.
3.
Sunallowsusers,VARs,andOEMstoremovebundledbrowsersbecauseitunderstandsthatthereisseparatedemandforbrowsersandoperatingsystems.
i.
JamesGoslingtestifiedthathecouldnotthinkof"anyplausibletechnicalreasontodesignWindows98inawaythatmakesitdifficulttoremoveInternetExplorer.
"Bycontrast,Goslingproposedseveralreasons"whyitwouldbedesirabletodesigntheoperatingsystemsothatthebrowsercouldberemoved,"includingthefactsthatusersmightwanttodeploytheiroperatingsystemswithoutdisplays(e.
g.
asaserver),theymightwanttoreplacetheirbrowserswithsuperiorproducts,ortheymightwanttoutilizespecializedbrowsers,suchasabrowserdesignedforpersonswithvisualimpairments.
Gosling,12/10/98pm,at60:10-62:1.
ii.
CrolltestifiedthattheWebStartandAnswerBook2featuresoftheSolarisoperatingsystemdonotrequiretheuseoftheHotJavabrowserthatisbundledwiththeOSinordertofunction"becauseweassumethataftertheoperatingsystemisloadedforthefirsttimethatcustomersaregoingtowanttohaveotherbrowsers.
"CrollDep.
(played12/15/98pm),at64:23-65:12.
116.
2.
4.
TheSantaCruzOperation(SCO)bundlesNetscapeNavigatorwithitsproductsbutpermitscustomerstochoosewhethertoinstallorremoveit.
116.
2.
4.
1.
SCOdoesnotconsiderabrowsertobepartofthe236operatingsystem.
i.
WhenaskedwhetheranybrowserproductispartofthecoreofanySCOoperatingsystemproduct,RonRasmussenansweredno.
"Ourviewisthatthebrowserisanapplication.
"RasmussenDep.
(played12/15/98am),at64:13-20.
ii.
RasmussentestifiedthatSCO"bundles"NetscapeNavigatorwithitsOpenServerandUnixwareproducts,(RasmussenDep.
(played12/15/98am),at54:10-56:18)butthat"Ourviewisthatthebrowserisanapplication.
"RasmussenDep.
,(played12/15/98am),at64:20.
Rasmussenalsotestifiedthat"WhenSCOsays'webundleafeature,'itmeansit'safeaturewhichisnotpartofthecorebaseoperatingsystemfunctionality.
Itmeansthatit'ssomethingthattheusercanchoosetoinstallorremove,andtheoperatingsystem,whoseprimaryfunctionitistoserveapplications,willstillfunctionproperly.
"RasmussenDep.
(played12/15/98am),at55:14-19.
116.
2.
4.
2.
SCOpermitsendusers,VARs,andOEMstoremovebundledbrowsersfromtheoperatingsystemiftheysodesireanddoesnot"hard-code"anythinginitsoperatingsystemtorequiretheuseofaparticularbrowser.
i.
RasmussentestifiedthatthereareanumberofwaystoremovethebundledbrowserfromUnixware2.
1.
3:"Thefirstwayisduringinstallationoftheoperatingsystem,thebrowsercanbedeselectedsoitneverdoesgetinstalledonthesystem--ontheharddiskofthecomputer.
"Moreover,"[i]ftheychosetoinstallNavigatoraspartoftheoperatingsysteminstallation,theycangobackinwithautilitytodosoftwareremovalandtheycan,again--theygetapoint-and-picklistandtheycanselectitforremoval.
"RasmussenDep.
(played12/15/98am),at60:21-62:7.
ii.
RasmussenfurthertestifiedthatNavigatorisuninstallableand/orremovablefromUnixware7"inthesamefashion"asfromUnixware2.
1.
3.
RasmussenDep.
(played12/15/98am),at62:15-24.
237iii.
Similarly,RasmussentestifiedthatNavigatorisoptionalonOpenServerRelease5aswell:Thebrowseris"removablebothatinitialsystemloadtimesoitnevergetsontothesystem,andit'salsoremovableafterwardsifyouchoseduringinitialsystemloadtoinstallit.
"RasmussenDep.
(played12/15/98am),at62:25-63:6.
116.
2.
4.
3.
SCOallowsusers,VARs,andOEMstoremovebundledbrowsersbecauseitunderstandsthatthereisseparatedemandforbrowsersandoperatingsystems.
i.
RasmussentestifiedthatthereasonSCOgivesitsusersthoseoptionswithregardtothewebbrowseristhat:"Noteverybodywantsthefunctionalityintheoperatingsystem,soweprovidethemthatoptiontoremoveitorinstallitatalatertime.
"RasmussenDep.
(played12/15/98am),at62:25-63:18.
Rasmussenfurtherexplainedthat"peoplearebuyingtheoperatingsystemstorunapplications,andiftheirapplicationdoesnotrequireawebbrowser,thenperhapstheydon'twantthewebbrowserthere.
Soifyou'rerunninganaccountingapplicationandyoudon'tneedthewebbrowser,perhapsyoudon'twanttoinstallittosavespaceonthedisk,or,insomeinstances,we'vehadresellerstellustheyconsiderthewebbrowseranunproductivitytoolaspeoplesurfthewebratherthandoingtheirwork.
"RasmussenDep.
(played12/15/98am),at63:19-64:6.
116.
2.
5.
OperatingsystemvendorBe,Inc.
,bundlestheonlybrowsercurrentlyavailablewithitsBeOSbutpermitsuserstoremoveit.
116.
2.
5.
1.
Bedoesnotconsiderabrowsertobepartoftheoperatingsystem.
i.
AlthoughbothBeandMicrosoft'sJamesAllchindescribetheNetPositivebrowserasan"integratedbrowser,"BereferstoNetPositiveasanapplicationandlistsitinthe"apps"directoryonthecomputer.
Allchin,2/2/99am,at14:3-11.
238116.
2.
5.
2.
Bepermitsend-users,VARs,andOEMstoremovebundledbrowsersfromtheoperatingsystemiftheysodesireanddoesnot"hard-code"anythinginitsoperatingsystemtorequiretheuseofaparticularbrowser.
i.
TheNetPositivebrowsercanberemovedfromtheBeOS.
AlthoughBe'shelpsystemwillnotfunctionfullyintheabsenceofabrowser,thehelpsystemwillworkifanotherbrowserorHTMLrendererisinstalledafterNetPositiveisremoved.
Allchin,2/2/99am,at10:4-21:4.
ii.
AllchinacknowledgedthatremovingtheNetPositivebrowserfromtheapplicationsdirectoryfreesup1.
3megabytesofRAMontheBeOSapplicationsdirectory.
Allchin,2/2/99am,at13:5-19:20;GX1771.
116.
2.
6.
NovellbundlesabrowserwithNetwarebutpermitstheusertoremoveitanduseathird-partybrowser.
116.
2.
6.
1.
Novelldoesnotconsiderabrowsertobepartoftheoperatingsystem.
i.
Novell'sSeanSandersdefined"adesktopoperatingsystem"inawaythatsaysnothingaboutbrowsingcapability.
Hedefineditas"aspecialsetcomputerprogramsthatallowsforthemanagementof.
.
.
computingresourcesthataspecificenduserwoulduseontheirdesktopPC.
Soitallowsthemtokindof--behindthescenesitdoessomemanagementofthephysicalcomputersuchasmanagingthememory,thediskdriveandsomeoftheothertechnicalaspectsthatareincludedwithinthebox.
Butitalsoprovidesa--kindofa--generallyafriendlyfrontendtothesystemthattheusercanmanipulatetobetterusetheirsoftwareprogramsandtheresourcesthataregenerallytherespecifictothedesktop.
"SandersDep.
(played1/13/99),at185:13-186:3.
116.
2.
6.
2.
Novellpermitsend-users,VARs,andOEMstoremove239bundledbrowsersfromtheoperatingsystemiftheysodesireanddoesnot"hard-code"anythinginitsoperatingsystemtorequiretheuseofaparticularbrowser.
i.
DavidWrighttestifiedthattheNetware5.
0operatingsystemwillfunctionwithoutthebrowser.
WrightDep.
9/18/98,at16:4-12(DX2601).
Similarly,ifthebrowserisinitiallyinstalledandthenuninstalled,theoperatingsystemwillstillfunction.
WrightDep.
,9/18/98,at16:13-18(DX2601).
ii.
WhenaskedhowtherelationshipbetweenbrowserproductsandNovell'sNetwaredifferedfromtherelationshipbetweenInternetExplorerandWindows98,Weadocktestified:"Itdiffersinseveralfundamentalways.
Forexample,Netwareasanoperatingsystemdoesnotdependonanyparticularbrowser.
ThebrowserthatcomesontheNetwareCDisused,forexample,toaccessthehelpanddocumentationfortheNetwareproduct.
Users—customersthatchoosenottousethatbrowserwithNetwarecanremoveit.
Usersthatchoosetouseanotherbrowser,adifferentbrowser,caninstalladifferentbrowser.
TheycaninstallInternetExploreriftheywant.
SointhosekeyareasweseedifferencesbetweenhowNovell,quoteunquote,bundlesNetwareandabrowser--Imean,it'saveryloosebundlinganditoffersthecustomersignificantchoices—withwhatMicrosoftisdoingwithWindows98,inwhichthebrowserisnonremovable,inwhichthefilesassociatedwiththebrowserdo,infact,disabletheoperatingsystemifyougooutanddeletethemonebyone,andinwhichcasethecustomerisnotcompletelyfreetoinstallanalternativebrowserbecauseofthehardwiredmethodswithintheuserinterfaceofWindows98thatstillinvokeInternetExplorerregardlessoftheactionsthatthecustomermayhavetakentoreverseordisablethatchoice.
"Weadock,11/17/98am,at47:1-48:1;seealsoWeadock,11/16/98am,at84:13-23.
116.
2.
6.
3.
Novellallowsusers,VARs,andOEMstoremovebundledbrowsersbecauseitunderstandsthatthereisseparatedemandforbrowsersandoperatingsystems.
240i.
Sanderstestifiedthat,whenauserinstallstheIntra-Netwareproduct,theyhaveachoiceofwhetherornottoinstallNetscapeNavigator.
SandersDep.
,1/13/99,at186:10-16.
SandersexplainedthatNovell'srationaleforgivingusersthischoiceisthat:"SomeusersdonothavedesiretouseallofthefunctionalitythatcomesintheentirebundlethatisIntra-Netware,andassuch,weprovidethemwiththeoptiontomakethosedecisionsastowhattheywouldchoosetouseandnottouse.
"SandersDep.
,1/13/99,at190:18-191:2.
116.
2.
7.
CalderagivesusersachoiceofmultiplebrowserswithitsOpenLinuxproductbutmakesthemeasilyandfullyremovable.
i.
CalderabundlestheKDEbrowseronitsOpenLinuxoperatingsystem;inaddition,"Netscapeispreloadedbydefaultontothosesystems.
"Felten,6/10/99am,at26:1-20.
116.
2.
7.
1.
Calderadoesnotconsiderabrowsertobepartoftheoperatingsystem.
i.
Sparkstestifiedthathedoesnotconsideranybrowsertobe"partoftheLinuxoperatingsystem.
"SparksDep.
(played12/16/98am),at50:8-11.
116.
2.
7.
2.
Calderapermitsend-users,VARs,andOEMstoremovebundledbrowsersfromtheoperatingsystemiftheysodesireanddoesnot"hard-code"anythinginitsoperatingsystemtorequiretheuseofaparticularbrowser.
i.
ProfessorEdwardFeltentestifiedthatCaldera'sKDEbrowser"isseparableandremovableandreplaceable.
"Felten,6/10/99am,at25:12-17.
Whenaskedwhathisbasiswasforsayingthatthebrowserisseparatefromtheoperatingsystem,ProfessorFeltenanswered:"Well,thereareseveralreasonsforsayingthat.
Firstofall,theKDEbrowserisdevelopedbyadifferentorganizationthantheonethatdevelopstheLinuxoperatingsystem.
.
.
.
Inaddition,theLinuxoperatingsystemworkswithotherbrowsers.
Infact,theOpenLinuxworksfinewith241Netscape,andNetscapeispreloadedbydefaultontothosesystems.
And,inaddition,theKDEbrowserrunsonotheroperatingsystems,suchasSolaris,HP-UXandIRIX.
"Felten,6/10/99am,at26:1-18.
ii.
AllchinconcededthatthebrowserbundledbyCalderacomesfromadifferentorganization,KDE(Allchin,2/1/99pm,at73:5-15)andthattheoperatingsystemwillcontinuetoworkifitisremoved.
Allchin,2/1/99pm,at73:25-74:13.
116.
2.
7.
3.
Calderaallowsusers,VARs,andOEMstoremovebundledbrowsersbecauseitunderstandsthatthereisseparatedemandforbrowsersandoperatingsystems.
i.
BryanSparkstestifiedthatCalderaallowsOEMstosellaversionofOpenLinuxwithoutabrowserbecause:"Whywouldn'tweAslongaswehadacontract.
I'mnotinapositionwhereIcanbepickyoncustomersthatIcanget.
Soiftheywantedtocustomizeit,they'dbehappyto.
"SparksDep.
(played12/16/98am),at50:24-51:8.
(c)Untilrecently,MicrosoftlikewiseaccommodatedthisseparatedemandbyenablinguserstoremoveInternetExplorerfromWindows117.
AlthoughMicrosoftrequiredOEMsanduserstoobtainInternetExplorerinordertoobtainWindows,itnonethelesscontinued,untilrecently,torecognizeseparatedemandforanoperatingsystemwithoutabrowserbysupplyingendusers(althoughnotOEMs)withameansofremovingor"uninstalling"thebrowser.
i.
SeeinfraPartV.
B.
2.
d.
(4).
(a);139.
2422.
MicrosofttiedInternetExplorertoWindowsinordertoimpedebrowserrivalsandprotectitsoperatingsystemmonopoly118.
Bycontrasttootheroperatingsystemvendors,MicrosoftbothrefusedtolicenseitsWindowsoperatingsystemwithoutabrowserandimposedrestrictions—firstcontractualandlatertechnical—onOEMs'andendusers'abilitytoremoveitsbrowserfromWindows.
Asitsinternalcontemporaneousdocumentsandlicensingpracticesreveal,MicrosoftdecidedtotieInternetExplorerandWindowstogetherinordertopreventNetscapefromdevelopingintoasignificantthreattoMicrosoft'soperatingsystemmonopoly,andnotforanypro-competitivepurpose.
a.
Beforeitdecidedtobluntthebrowserthreat,MicrosoftdidnotplantotieitsbrowsertoWindows119.
MicrosoftarguesthatitmadethedecisiontobuilditsownbrowserandbundleitwithWindows95atanApril1994retreatdedicatedtoInternetissues(AllchinDir.
225-227).
Thatargumentisinconsistentwiththeevidence,whichshowsinsteadthatMicrosofthadnofirmplansatthattimetobundleitsbrowserwiththeoperatingsystem.
119.
1.
Microsoft'sinternalcorrespondenceandexternalcommunicationsfromearlytomid-1994showthatMicrosoftwasplanning,atmost,tobundlelow-levelInternet"plumbing"suchasaTCP/IPstack,butnotapplicationssuchasabrowser,withWindows95.
i.
InresponsetoaquestionabouthowtohandlepressandOEMinquiriesconcerningMicrosoft'sinternetplans,AlecSaunderswroteinApril1994:"It'sgettingveryconfusingandatthemomentalotofexternalpeopleareaskingifwewillbeshippinginternetapps.
ThepositionwehavetakensofaristhatChicago[Windows95]containsalltheplumbingyouneedtohookuptothenet--butcoolappslikeMosaicarestuffyouneedtoobtainfrom3rdparties.
"GX124.
ii.
AFebruary1994emailfromDavidColetoBillGatesandothersenior243executivesreportingon"Chicagobeta1content"providesadetaileddescriptionoffeaturesofWindows95butdoesnotmentionintegrationorbundlingofwebbrowsingfunctionality.
ItsonlymentionofInternetsupportisareferenceunderthetitle"Networking"to"CompleteTCP/IPsupport.
Afast,protmodestackwithnolowmemoryrequirements.
AfullsetofTCPutilities.
WindowsSocketssupportfor16and32-bitapps.
DHCPsupportfor'plugandplay'TCP/IPnetworking.
"GX597,atMS980010791.
iii.
StevenSinofskywroteinJune1994:"Wedonotcurrentlyplanonanyotherclientsoftware[intheupcomingreleaseofWindows95],especiallysomethinglikeMosaicorCello.
"Infact,Microsoft'sgoalatthetimewasto"get[]asmanythirdpartieswritingasmanyinternetthingsontopofWinSockasposible,includingasmanyWWW,Gopher,TN3270,etcclientsastheycanaffordtodo.
"GX125.
iv.
ANovember1994draftofa"communicationsstory"formarketingWindows95madenomentionofinclusionofanInternetbrowser,claimingonlythatWindows95"supportspopularInternetapplications,suchasMosaic,WinWAISorWinGopher.
"BradChaserespondedthat"idon'tthinkwedeliverwhatyousay.
Ithinkintegrationisimptbutwedon'treallyintegrate.
Youstilluseaphoneforexample.
YouhavetogetsomethirdpartyprogramtoactuallyhaveaUIintotheInternet.
"GX601.
119.
2.
Microsoftpubliclystatedthroughout1994thatWindows95wouldnotincludeabrowser.
i.
ANovember1994marketingbrochureentitled"MicrosoftWindows95QuestionsandAnswers"respondstothequestion"CanWindows95connecttotheInternet"asfollows:"Yes.
Windows95includesthenetworkingsupportyouneedtoconnecttotheInternet.
Itincludesafast,robust,32-bitTCP/IPstack.
.
.
aswellasPPPor'dial-in'support.
Windows95supportsthelargenumberoftoolsusedtoconnecttotheInternet,suchasMosaic,WinWAIS,andWinGopher,throughtheWindowsSocketsprogramminginterface.
Windows95alsoincludesstandardInternetsupport,suchastelnetandftp.
"GX398,atMS980107100.
119.
3.
ThetestimonyofPhillipBarrett,aformerMicrosoftemployeewhowasresponsiblefortheearlydevelopmentofInternetExplorer,confirmsthatMicrosofthadno244genuineplanstobundleabrowserwithWindows95in1994.
i.
BarretttestifiedthatheattendedtheApril1994"offsite"atwhichthesubjectmatterwas"whatwasMicrosoftgoingtodoabouttheinternet.
"(BarrettDep.
,1/13/99,at100:3-14)andparticipatedina"breakout"sessionledbyBillGatesandalsoincludingBradSilverbergandJohnLudwig(BarrettDep.
,1/13/99,at101:14-18)whichfocusedon"theinternetserviceprovidersandthenecessaryplumbing--plumbingbeingtheinfrastructure--toallowlargenumbersofpeopletogetonlineandusetheinternet.
"BarrettDep.
,1/13/99,at101:21-25.
ii.
Barretttestified:"TheplansweretoputaTCP/IPpack.
.
.
andthendialupmodemsupport"intoeitherWindows95orasubsequentservicepack.
BarrettDep.
,1/13/99,at106:9-14.
Barrettdoesnot"recallanydiscussionstakingplace"aboutbuildingawebbrowserintoWindows95,(BarrettDep.
,1/13/99,at107:2-4)andtestifiedthat,tothebestofhisknowledge,nosuchplanshadbeenmadebytheconclusionoftheretreat.
BarrettDep.
,1/13/99,at107:24.
BarretttestifiedthatBillGates'assertionthatMicrosoftdecidedtointegrateawebbrowserintoWindows95attheApril1994retreat"isnotconsistentwithmymemoryoftheretreat.
"BarrettDep.
,1/13/99,at111:9-10.
iii.
Barretttestifiedthat,aftertheretreat,hemovedintotheWindowsgroup"tofocusonInternettechnology.
"BarrettDep.
,1/13/99,at108:2-7.
Barrett'snewjobwasto"figureoutastrategy"withrespecttodevelopmentofawebbrowser.
BarrettDep.
,1/13/99,at108:13-16.
BarretttestifiedthatheandhisgroupdidnotdevelopawebbrowserandthatatthetimeheleftMicrosoftinOctober1994hewasnotawareofanyplanstodevelopabrowserforinclusioninWindows95.
BarrettDep.
,1/13/99,at108:21-109:9.
BarrettalsotestifiedthatMicrosoftcouldnothavehadsuchformalplanswithouthisknowledge,becausethey"wouldhavefalleninto[his]areaofresponsibility.
"BarrettDep.
,1/13/99,at109:11-21.
120.
EvenafteritbecameawareofthethreatposedbyNetscape'sbrowser,andaslateasJune1995,MicrosofthadnofirmplanstobundleitsbrowserwithWindows95.
Instead,Microsoftplannedtoshipitsbrowserinaseparate"frosting"package(eventuallycalledMicrosoft"Plus"),forwhichitplannedtocharge.
i.
AJanuary1995draftpressreleaseannouncingthepurchaseoftheMosaiccode245stated:"Atthepresenttimetherearenoplanstoship.
.
.
theMosaicsoftwareintheWindows95boxwhenitshipsinAugustofthisyear.
.
.
.
OurplanistodeliverthiscapabilityshortlyafterWindows95ships.
"GX138,atMS6600545.
ii.
Adocumententitled"Top20FeaturesMicrosoftWindows95"lists"PlumbingfortheInternet"asnumber13,andstatesthat"Windows95.
.
.
hasallthenecessary'plumbing'builtintotheoperatingsystem,andprovidesyouwithallthenecessary32-bitdriverssuchasTCP/IPtoaccessthenet,dialupprotocolssuchas[PPPandSLIP,and]builtintoolsandutilitiestomakethebasicconnections,suchasFTPandtelnet.
Nowyoucanaccesstheinternetdirectly,throughtheMicrosoftNetwork,oraddWEBbrowsingcapabilitiesbyaddingMicrosoftPlus!
toWindows95.
"GX152.
iii.
InanemailexchangewithBenSlivkaonJune15,1995,BradChaseobservedthat"thereisstillanefforttothrowthis[InternetExplorer/O'Hare]intowindows95.
"Slivkarespondedthat"[theu]pgradescheduleisprettytight,"andthat"[i]fwe'renotintheupgrade,itmakesourlifeeasier,andwegetmorePlusrevenue.
GX149.
iv.
BenSlivkasuggestedtoBradSilverberginApril1995thatMicrosoftmightnotwanttoputInternetExplorerintheWindows95boxbecauseofsizeconstraints.
"PuttingintheWebbrowserispossible,butit's475k(compressed-170k),andit'snotusefulunlessyou'realreadyonline,andyou'realreadystrugglingtofiton12disks.
"GX146.
v.
AJune28,1995,updateforMicrosoftexecutivesonthetestingprocessforaddingO'HaretotheOEMversionofWindows95statesthat"westilldon'thaveafirmgo-ahead.
Each'Meetingtodecidetodo/notdothis'becomes'let'skeepgoingandmeetintwomoredays.
'"GX151.
vi.
BasedonMicrosoft'sinternalcontemporaneousdocuments,andotherevidence,ProfessorFisherconcludedthatMicrosoftmadethedecisiontobundleInternetExplorerwithWindows"noearlierthanthemiddleof1995.
"Fisher,1/6/99pm,at26:7-8.
b.
Microsoftchangeditsplans,anddecidedtotieitsbrowsertoWindows,inordertoimpedeNetscape121.
Inlate1994andearly1995,however,executiveswithinMicrosoftbegantorealizethatthepopularityofNetscape'sbrowserposedaseriousthreattoMicrosoft'soperatingsystemmonopoly.
246i.
SeesupraPartIII.
B.
2;56.
122.
Asaresult,MicrosoftdecidedthatgainingalargeshareoftheWindows95browserusagemarketwasthebestwaytopreventNavigatorfromdevelopingintoagenuinelycompetitiverivalplatform.
i.
SeesupraPartV.
A.
123.
Microsoftconsideredavarietyofstrategiesforrapidlygainingalargeshareofthebrowsermarketand,asexplained,triedtocoerceNetscapeintoabandoningitsWindows95browserbusinessaltogether.
i.
SeesupraPartIV.
A.
124.
Butinearly1995MicrosoftexecutivesalsobegantoconsiderbundlingInternetExplorerwiththeupcomingreleaseofWindows95andforcingOEMstotakeit.
i.
InanApril1995email,BradSilverbergtoldBenSlivkaandJohnLudwigthat"IhavespokentoPaulmaandheisinagreementthatweshouldgetourInternetclientdistributedasbroadlyaspossibleassoonaspossible.
WhatthismeansisthatIwantOhareinWin95.
"GX608.
ii.
AJune1995summarypreparedbyJohnGrayofameetingdiscussingtheissuereportsthatthey"[t]enativelydecidedtoprocedeonpathofputtingOhareandRomeintoinitialOEMproductsbutNOTinretail.
"GX612,atMS980122185.
125.
Microsoft'smotiveintyingInternetExplorertoWindows95(thatis,inrefusingtoofferOEMstheoptionoflicensingWindowswithoutthebrowser)wastothwarttheplatformthreatposedbyNetscape'sbrowser.
i.
OnJune23,1995,JohnLudwigwrotetoPaulMaritzandothersthat"obviouslynetscapedoesseeusasaclientcompetitor.
i'mgladyoudidn'ttellthemmanyspecifics.
wehavetoworkextrahardtogetohareontheoemdisks.
"GX623.
ii.
InApril1995,RickRashidofMicrosoftwrotetoPaulMaritzthat"[j]ustasthey[Netscape]areathreattous,weareathreattothem.
Ourbestinterestisserved247byeffectivelyeliminatingthespecialbrowserandspecialservermodelaltogetherandmakingtheWindowsdesktopthe'browser'andWindowsNTthe'server.
'"GX521.
iii.
AllchinconcededthathebelievedthatincludingInternetExplorerintheOEMversionofWindows95wouldbeawaytohelpincreaseInternetExplorer'smarketshare.
Allchin,2/3/99am,at56:7-11.
"Thesoonerwegotittoeverybody,thebetteroffwewouldbe.
Thatwasabsolutelybelieved.
Andweweregoingtodistributeitthrougheveryvehiclewecould.
"AllchinDep.
(played2/3/99am),at58:2-5;Allchin,2/3/99am,at58:9-22.
iv.
Dr.
Warren-Boultontestifiedthat"if,indeed,Windows98wereprovidedseparatelyanddistinctlywithoutbrowserfunctionality,thatgivenwhatIunderstandtobethecosts,incrementalcosts,ofprovidingitseparatelyandgivenwhatIunderstandtobethepotentialdemandfortheproducttobeprovidedseparately,thatitwouldbeprofitabletoprovidethatproductseparately.
"However,"becauseofMicrosoft'sincentivetocontrolthebrowsermarket,whatwouldotherwisebeprofitabletosellasaseparateproductisnotbeingsoldasaseparateproduct.
"Warren-Boulton,11/24/98pm,at37:3-38:2.
"Amonopolistofanoperatingsystemhasaparticularincentivenottoallowthemarkettohave,ifyoulike,alevelplayingfieldchoice.
"Warren-Boulton,11/24/98am,at59:10-12.
v.
BasedonthecontemporaneousinternalMicrosoftdocuments,andotherevidence,ProfessorFisherconcludedthat"Microsoftmadeitsdecisiontocombineitsbrowserandoperatingsystemnottoachieveefficienciesbuttoforeclosecompetition.
"FisherDir.
143;Fisher,1/12/99pm,at10:21-11:3(testifyingthat"it'sallovertheMicrosoftdocuments.
Theydidthisinordertothwarttheplatformthreat,inordertopreventthepossibilitythatNetscapeandJavawouldleadtoasituationinwhichtheapplicationsbarriertoentryintooperatingsystemswouldbeeroded.
").
c.
MicrosoftuseditsoperatingsystemmonopolytocompelOEMslicensingWindows95alsotolicenseInternetExplorer1and2126.
ReflectingMicrosoft'sverylatedecisiontotieInternetExplorertoWindowstocombattheNetscapeplatformthreat,thefirstversionofWindows95fortheretailchanneldidnotincludeInternetExplorer.
MicrosoftofferedInternetExploreronlyinaseparate"pluspack"CDthatitdistributedentirelyseparatelyfromWindows95.
248i.
JamesAllchintestifiedthat"MicrosoftincludedInternetExplorer1.
0intheOEMversionofWindows95,butnotintheinitialretailversion.
Rather,intheretailchannelInternetExplorer1.
0wasincludedinthePlus!
package,asetofsoftwareenhancementsthatMicrosoftofferedtocustomersupgradingtoWindows95.
AllchinDir.
247.
ii.
DavidColeacknowledgedthatsubsequentretailversionsofWindows95camewithInternetExplorer1.
0and2.
0onaseparatedisk;theprimarydiskcontainedtheoriginalversionofWindows95thatwasreleasedatretailinJuly1995.
ColeDep.
,1/13/99,at401:10-402:25.
127.
Bycontrast,MicrosoftrequiredOEMstolicenseaversionofWindows95thatincludedInternetExplorer1and,later,InternetExplorer2.
MicrosoftrequiredOEMstoinstallInternetExploreronallPCsonwhichWindows95wasinstalledandcontractuallyprohibitedthoseOEMsfromremovingthebrowser.
i.
AmendmentNo.
2toMicrosoftOEMLicenseAgreementforOperatingSystemswthDellComputerCorporation,GX1121(sealed).
ii.
Compaq'sJohnRoseconcededthatMicrosoft'scontractualprovisionsrequiredCompaqtoincludeInternetExplorerwiththePCsitshipped.
Rose,2/18/99pm,at8:25-10:1.
iii.
Microsoft'soperatingsystemlicenseagreementwithGateway,GX458,atMS980009146(sealed);GX652(GatewayresponsetoaCID)(sealed);GX1129(Amnd.
No.
1toPackard-Bell'soperating249systemlicensewithnearlyidenticalprovisionsinthe"AdditionalTerms,"sections(a)(1)and(a)(1)(C));GX1183,atMS980009095-0009096(Hewlett-Packard'slicensewithnearlyidenticalprovisionsinthe"AdditionalProvisionsKey,"(sections(q)(a)and(q)(a)(iii))(sealed).
128.
BecausetheOEMshadnocommerciallyviablealternativetoWindows95,Microsoftsucceededinforcingthemtoagreetoitstyingarrangement,despitecleardemandfromOEMsforWindowswithoutInternetExplorer.
128.
1.
Forinstance,CompaqremovedtheInternetExplorericoninparttofeatureNetscape;but,whenMicrosoftthreatenedtoterminateCompaq'sWindowslicense,CompaqquicklycapitulatedtoMicrosoft'sdemandsthatitrestoretheicon.
128.
1.
1.
Inlate1995,CompaqremovedtheInternetExplorer(andMSN)iconsfromtheWindows95desktoponitsPresariolineofpersonalcomputersinordertofeatureNetscape.
i.
JohnRoseacknowledged:"Iunderstandthat,inearly1996,Compaqdidremove,onsomeconsumerproducts,theInternetExplorericon(asopposedtoInternetExplorersoftware)fromtheWindows95defaultdesktoponitsPresariolineofpersonalcomputers.
"RoseDir.
25.
ii.
RosealsoacknowledgedthatCompaqhadastrategytofeatureNetscapealongwithAOL.
Rose,2/19/99am,at64:14-23.
iii.
SeealsoPartV.
C.
2.
a.
(1);202.
2.
128.
1.
2.
MicrosoftrespondedtotheremovaloftheInternetExplorer(andMSN)iconsbythreateningtoterminateCompaq'sWindowslicense.
i.
Microsoft'sDonHardwickandMicrosoftin-housecounselPeterMillerbothsentletterstoCompaqstatingMicrosoft'sintenttoterminatetheWindows95licenseagreementbetweenthecompaniesifCompaqdidnotrestoretheiconstotheiroriginalstatus.
GX649;GX650.
250ii.
SeealsoPartV.
2.
a.
(1);202.
3.
128.
1.
3.
InresponsetoMicrosoft'sthreat,Compaqrestoredtheiconstothedesktop.
i.
OnJune21,1996,CompaqgaveintoMicrosoft'sdemands.
CelesteDunnsentalettertoHardwickstatingthatCompaqhas"madethechangesyourequestedtotheWindows95desktopofthecurrentreleaseoftheCompaqPresariosystems.
WehavereplacedtheMicrosoftNetworkandInternetExplorericonsontheWindows95desktopasexecutableiconssotheylookandfunctionexactlythesameashowweoriginallyreceivedthemfromMicrosoftandhaveplacedMicrosoftNetwork,InternetExplorericonsandInternetSetupWizardiconsintheiroriginallocationsundertheStartbuttonontheWindows95desktop.
"TheletteralsopointedoutthaticonsforAOLandforNetscapewereontheWindows95desktopforPresariosystems.
GX645.
ii.
OnJune25,1996,MicrosoftsentCompaqaletterwithdrawingtheNoticeofIntenttoTerminateCompaq'sWindowsoperatingsystemlicenseagreementbasedonCompaq'srepresentations.
GX301.
128.
2.
OtherOEMsrecognizedthattheyhadnochoicebuttolicenseInternetExploreralongwithWindows.
i.
Seesupra129.
d.
MicrosoftnexttiedInternetExplorer3and4toWindows95(1)MicrosoftconcludedthatmerelytyingInternetExplorertoWindowswasnotsufficienttodefeatNetscapeandthat,towinthebrowserwar,itmustmakeWindowsandInternetExplorerdifficulttoseparate129.
MicrosofteventuallyconcludedthatitspurelycontractualtiebetweenWindows95andInternetExplorerwouldnotbesufficienttopreventNetscapefromdevelopingintoaserious251threattotheapplicationsbarriertoentry.
Itdecided,therefore,tomakeWindowsandInternetExplorerdifficulttoseparate.
i.
Ina1996marketingplanentitled"Howtogetto30%Sharein12Months,"BradChasewrote,"ShellIntegration.
TheInternetisapartofWindows.
WewillbindtheshelltotheInternetExplorer,sothatrunninganyotherbrowserisajoltingexperience.
Shell/Browserusermodelbecomesthesame.
"GX684,atMS66007119.
ii.
AreviewofmarketingplansforInternetExplorer3states:"WhatwecandothatNetscapecan't--BuildingonourWindowsassets--Integration,acustomerwin,wecandothisbetter--Othertechnologyassets(direct,activeetc.
)--Incentives.
"GX488,atMS65005758.
iii.
AJanuary1996MicrosoftpresentationdescribesasaResponseSummarytocross-platformJava:IncreasedInternetExplorershare,IntegratewithWindows.
GX52,atMS7003270.
(2)Infurtheranceofthisobjective,MicrosofttiedInternetExplorer3toWindowsbycomminglingthecodethatsupplieswebbrowsingwiththecodethatsuppliesoperatingsystemfunctions,forcingOEMstolicensethatproduct,andrefusingtosupplyanunbundledoption130.
Inordertoaiditsefforttowinthebrowserwar,Microsoftoffereditsoperatingsystemonlyaspartofasoftwarepackage(whichitcalls"Windows95"or"Windows98")thatalsocontainedInternetExplorer3(andeventuallyInternetExplorer4)andinwhichmuchoftheunderlyingsoftwarecodethatsuppliesweb-browsingandoperatingsystemfunctionsiscontainedinthesamefiles.
MicrosoftthusnotonlyuseditsmonopolypowertoforceOEMs(andendusers)totakethebrowserwiththeoperatingsystem,butalsomadethebrowserandoperatingsystemdifficulttoseparate.
Microsoftdidsodespitethefactthatithad,asamatterofsoftwaredesign,significantdiscretionastohowtopackageitsbrowserandoperatingsystemproducts.
Microsoftmadeastrategicdesigndecision,ratherthanadesigndecisiondrivenby252considerationsofdemandandcost.
(a)Softwareroutinesandfilesneednotbedevelopedordistributedtogethertoachieveseamlessintegrationoftheirfunctions131.
Microsofthadsignificantdiscretionbecausewhetherdifferentsoftwareproductsaredeliveredbyoneormultiplegroupsofcodeisamatterofpackagingratherthanengineering.
131.
1.
Softwareconsistsofaseriesofdetailedinstructionstothevariouscomponentsofacomputer.
Itisusuallywritteninoneofmanyspecializedartificiallanguagesdesignedtobecomprehensibletohumanprogrammersandthen"compiled"intoaformthatinteractsdirectlywiththehardware.
i.
ProfessorDavidFarbertestifiedthata"compilertranslatesinstructions(writteninalanguageefficientforprogrammers)intothelanguageunderstoodbythecomputerhardware.
"FarberDir.
19.
131.
1.
1.
Thesoftwarecodenecessarytosupplythefunctionalityofamodernapplicationoroperatingsystemcanbeextremelylengthyandcomplex.
i.
ProfessorFarbertestified:"Applicationsmaybelarge,ofteninvolvingaverylargenumberofroutines.
"FarberDir.
17.
ii.
MicrosoftestimatesthatthesetofinstructionsthatitcallsWindows98consistsofapproximately18millionindividuallinesofcode.
Allchin,2/2/99am,at41:12-17.
131.
1.
2.
Tomakethatcomplexitymanageable,modernsoftwareisusuallywrittenasaseriesofindividualroutines,rangingfromafewtenstoafewhundredsoflinesofcodeapiece,thatperformspecificfunctions.
Largeprogramsarecreatedby"knittingtogether"manysuchsimpleroutineswithhigherlevelroutines.
i.
ProfessorFarbertestifiedthatroutines"typicallycontainafewtenstoafewhundredsoflinesofcodeeach.
"FarberDir.
13.
253ii.
ProfessorFarbertestifiedthat"eachsoftwareproductisbuiltupfromsimplelowlevelroutinesthatarethencalledbyroutinesatahigherlevelofcomposition.
Routinesateachlevelarecalledbyyethigherlevelroutinesuntilthedesiredfunctionalityoftheendproductisachieved.
Inthismanner,allsoftwareisbuiltuplayerbylayerthroughtheuseofoftenlargenumbersofroutines,buteachwithlimitedcomplexity.
"FarberDir.
14.
iii.
JoeBelfioretestifiedthat"whenwedogoodsoftwarearchitecture,whatwe'reabletodoistobreakwhatisacomplexandveryfullsetoffunctionalityintomeaningfulcomponents,eachofwhichsortofcanbeself-containedandcanimplementthejobthatit'ssupposedtodoinaveryefficientway.
Andifyoudoareallygoodjobofthis,theneachofthoseseparatecomponentsareveryusefultootherpartiesthatwanttotakeadvantageofthem.
"BelfioreDep.
,1/13/99,at377:2-11.
131.
2.
Asaresultofitsmodularstructure,modernsoftwareisextremelymalleable.
Underlyingroutinescanbepackagedtogetherinessentiallyanywaythatthedesignerchooses.
i.
"Asaresultofthislayering,"ProfessorFarbertestified,"softwarehasaninherentlymalleableandmodularstructurewhichgivessoftwaredevelopersbroadfreedomincombining(i.
e.
,bundling)differentfunctionsintosoftwareproducts.
"FarberDir.
15.
ii.
GlennWeadocktestifiedthatsoftwaredesignershavegreatflexibility"inhowtocombinetheatomicunitsofcode,calledsubroutinesorfunctions,tomakeupfiles(or"libraries")ondisk.
.
.
.
Theycancreateaso-called'monolithic'programthatconsistsofasingle,largefile;theycancreateahighlymodularprogramthatusesahundreddifferentlibraryfiles(calledDLLs,forDynamicLinkedLibrary)tocontainathousanddifferentsubroutines;ortheycanchooseanyintermediatedegreebetweenthesetwoextremes.
"WeadockDir.
29.
iii.
BelfioreconcededthattheorganizationoffilesintovariousDLLscanbechangedordesignedwithspecificgoalsinmind.
BelfioreDep.
,1/13/99,at153:23-154:4.
iv.
HadiPartovitestifiedthatMicrosofthasmovedfunctionsinoneDLLintodifferentDLLsinsucceedingversionsoftheproduct.
PartoviDep.
,2541/13/99,at659:7-23.
v.
Weadocktestified:"Asoftwaredesignerwithsourcecodeaccessmaychoosetoplaceanapplicationsubroutineintoafilethatcontainsoperatingsystemsubroutines.
.
.
.
Microsoft,forexample,haschosentodesignInternetExplorersothatsomeofthecodethatitusesco-residesinthesamelibraryfilesasothercodeneededforWindows98orevenWindows95torun.
"WeadockDir.
30.
vi.
ProfessorEdwardFeltentestifiedthatSHDOCVW.
DLL"isagreatexampleofthepointI'mtryingtomakeaboutpackagingoffunctionsintofiles.
ThisSHDOCVWfileisreallyabundleofseparatefunctions.
ItcontainssomefunctionshavingtodowithdisplayingtheStartmenu.
ItcontainssomefunctionsthathavetodospecificallywithWebbrowsing,anditcontainssomegeneraluserinterfacefunctionsaswell.
Andtotalkaboutthisfileasdoingonethingorbeingpartofoneproductisreallyincorrect.
"Felten,12/14/98am,at60:18-61:2.
vii.
ProfessorFeltentestified:"Duetothemalleablenatureofsoftware,functionsmaybemovedfromoneDLLtoanother,orasingleDLLmaybedisaggregatedintotwoDLLs.
"FeltenDir.
60.
131.
3.
Softwareroutinesneednotresideinthesamefiletofunctiontogetherinaperfectlyseamlessfashion.
Exceptattheextremes,therefore,howasoftwareengineerchoosestoorganizeroutinesintoparticularfilesisamatterofpackagingasopposedtoengineeringnecessity.
i.
ProfessorFarbertestifiedthat"asoftwaredeveloperisfree(subjecttominimallimitationsofnorelevancehere)tochangethepartitioningofroutinesamongfilesatanytimewithoutchangingtheirfunctionorcorrectoperationwhenthefilesarecombinedduringexecutioninanenduser'scomputer.
Thus,thereisgenerallynotechnicalreasonwhyaparticularroutinemustbeincludedinthesamefilewithanotherroutinesolongastheroutinesareappropriatelycompiledandlinkedintheenduser'scomputer.
"FarberDir.
18.
ii.
ProfessorFeltentestifiedthataspartofthetransitionfromInternetExplorer4toInternetExplorer5,MicrosoftsplitSHDOCVW.
DLLintotwoparts,SHDOCVW.
DLLandanewfilecalledBROWSEUI.
DLL.
HealsotestifiedthatMicrosoftmovedsomecodefromSHDOCVW.
DLLinto255SHELL32.
DLL.
Felten,6/10/99am,at49:4-15.
iii.
WilliamHarristestifiedthatsoftwaredevelopment"isinherentlyflexible.
Therearenumerouswaysinwhichtodesignaprogramtoachievethesamefunctionalityoreffect.
Similarly,adevelopercancombine,orseparate,anytwoormoresoftwareproductsorcomponents.
Itistypicallythegoaltocombinesuchproductsorcomponentsinsuchawayastoappear'seamless'totheuser,inotherwordstomakethetwoproductsappearlikeone.
AgoodexampleofthisiswhatIntuithasdonewithQuickenandInternetExplorer.
"HarrisDir.
82.
131.
4.
Filesofsoftwareroutinesneednotbeshipped,orevendesigned,togethertoachieveseamlessintegrationoftheirfunctions.
Whetherthenecessaryfilesareshippedtogetherwiththeoperatingsystem,installedbyanOEMpriortosellingacomputerintheretailchannel,oraccumulatedbytheenduserthroughthepurchaseofseparateproductsfrommultiplecompanies,thefunctionalityultimatelydeliveredtotheconsumercanbeexactlythesame.
i.
ProfessorFarbertestified:"Alltheroutinesthatarecalleddirectlyorindirectlybyaprogramshouldbeavailablewhentheprogramisbeingused.
Butwhetherthoseroutinesoriginatefromoneparticularsoftwareprogramoranotherisirrelevanttotheperformanceofthefunctions,solongasthesoftwareiswrittenandinstalledsuchthattheprogramsworktogether.
"FarberDir.
18.
ii.
ProfessorFarberalsotestifiedthat"softwarehasaninherentlymalleableandmodularstructurewhichgivessoftwaredevelopersbroadfreedomincombining(i.
e.
bundling)differentfunctionsintosoftwareproducts.
Thismalleabilityalsogivesasoftwaredevelopertworelatedtypesofdesignfreedom:(1)tointegratetwoseparatecd-romsbecausethefunctionsononeparticularcd-romcanbeintegratedbyanOEMorretailenduserwithfunctionsonanothercd-romand(2)todeterminewhichfunctionstoincludewithinsoftwaresoldasoneproductandwhichtoseparateandsellasadifferentproduct,whetherproducedbythesameoradifferentsoftwaredeveloper,forinstallationandusetogetherbythearetailenduser.
"FarberDir.
15.
iii.
ProfessorFeltentestified:"Themerefactthattwofunctionsareimplementedinthesamefile,orthattwoproductsare'integrated'intoasingleproduct,doesnotimplythattheymustbeimplementedinthis256fashion;becauseofthenatureofsoftware,functionscanbeseparatedintodistinctfiles,or'integrated'productscanbeseparatedintodistinctproductswithoutanylossofcapability.
"FeltenDir.
31.
iv.
ProfessorFeltentestified:"InsomecasesinWindows95andIE4,functionsusedinWebbrowsingandfunctionsunrelatedtoWebbrowsingareimplementedinthesameprogramfile.
Thatthesefunctionsareimplementedinthesamefiledoesnotmeanthatthesefunctionsareinevitablyintertwined.
"FeltenDir.
31.
v.
ProfessorFeltentestifiedthatWindowsExplorerisconfiguredtoallowother,entirelyseparateapplicationstodisplayinformationinitsembeddedsubwindows.
"This'ActiveDocuments'specificationthatMicrosofthasreleasedallowsanyonetowriteapieceofsoftwarethatcandisplayanythinginanembeddedsubwindowlikethis.
Andso,oneofthepointstomakeaboutthisisthatthefactthatacompletelyseparateapplicationlikeMicrosoftWordorlikesomeISVapplicationcandisplaysomethinginthatembeddedsubwindow,doesnotimplythatMicrosoftWordorthatISVapplicationispartofWindowsExplorer.
ItjustsaysthatitcandisplaysomethinginsidethatwindowframethatWindowsExplorerputsup.
"Felten,12/14/98pm,50:4-14.
vi.
WeadocktestifiedthatNovelldesigned"anHTML-basedhelpsystemthatis--thatworkswithmultiplebrowsers.
ItworkswithNavigator.
ItworkswithInternetExplorer.
"Weadock,11/17/98am,at48:14-49:5.
(b)Althoughrecognizingitcouldhavechosenadifferentapproach,MicrosoftmadeInternetExplorer3andWindowsdifficulttoseparateandofferedonlyabundledversiontoOEMsandendusers132.
Althoughitrecognizeditsabilitytochooseotherapproaches,beginningwithInternetExplorer3Microsoftplacedinthesamefilestheroutinesthatsupplybothoperatingsystemfunctionalityandwebbrowsingfunctionality,andMicrosoftrefusedtogiveOEMstheoptionofcombiningthetwoproductsthemselves.
132.
1.
TheOSR2.
0releaseofWindows95,releasedinAugust1996,updatedDLLsthatsuppliedbothwebbrowsingandotherfunctions.
257i.
MicrosoftVice-PresidentDavidColetestifiedthat"InternetExplorer3.
0isanintegralpartoftheOEMServiceRelease2.
0(or'OSR2.
0'OSR2.
0,whichwasfirstmadeavailabletocomputermanufacturersinAugust1996,includesawiderangeofproductenhancementsinadditiontoInternetExplorer3.
0,suchassupportforlargerharddrives,improvedmultimediasupport,avarietyofnetworkingenhancements,newpowermanagementfeatures,andmanyothers.
"ColeDecl.
41-42(DX2220).
ii.
Weadocktestifiedthatasoftwaredeveloper"maychoosetoplaceanapplicationsubroutineintoafilethatcontainsoperatingsystemsubroutines.
.
.
.
Microsoft,forexample,haschosentodesignInternetExplorersothatsomeofthecodethatitusesco-residesinthesamelibraryfilesasothercodeneededforWindows98orevenWindows95torun.
"WeadockDir.
30.
iii.
ProfessorFeltentestifiedthatthere"isothersoftwarecodespecifictoIEwebbrowsingthatcouldbedeletedfromthesesharedprogramlibraries.
"FeltenDir.
58.
iv.
FeltentestifiedthatSHDOCVW.
DLL"isreallyabundleofseparatefunctions.
ItcontainssomefunctionshavingtodowithdisplayingtheStartmenu.
ItcontainssomefunctionsthathavetodospecificallywithWebbrowsing,anditcontainssomegeneraluserinterfacefunctionsaswell.
Andtotalkaboutthisfileasdoingonethingorbeingpartofoneproductisreallyincorrect.
"Felten,12/14/98am,at60:15-61:2.
132.
2.
MicrosoftdidnotofferOEMsaversionofWindowswithoutwebbrowsing.
MicrosoftrefusedtodosodespitethefactthatitofferedInternetExplorer3separatelytoendusersinawaythat,whencombinedwithanearlierversionofWindows95,suppliespreciselythesamefunctions.
i.
WhenaskedwhetherheconsideredtheretailversionofInternetExplorer3tobe"integrated"withWindows95,onceinstalledbythecustomer,CarlStorkanswered:"Onceit'sinstalled,Iconsiderittobeintegrated.
.
.
.
Itwasdevelopedmuchaswedevelopouroperatingsystemupgradesthattheendresultwouldbeanintegratedwhole.
Andit'sjustaquestionofhowit'sdelivered.
"StorkDep.
,8/11/98,at53:18-54:14(DX2594).
133.
InadditiontoofferingOEMsWindowsonlywithInternetExploreralready258installed,MicrosoftprohibitedOEMsbycontractfromremovinganyaspectofthebrowserfromtheWindowssoftwarepackage.
i.
SeesupraPartV.
B.
2.
c.
;127.
134.
BecauseOEMshavenoviablecommercialalternativetoWindows,Microsoft'srefusaltoofferanunbundledoptioncoercedOEMsintolicensingthebrowserasaconditionoflicensingWindows.
i.
SeesupraPartII.
A;15;PartV.
B.
2.
c;130.
(3)MicrosoftsimilarlytiedInternetExplorer4toWindows135.
MicrosoftalsouseditsmonopolypowertoforceOEMstolicenseanddistributeInternetExplorer4asaconditionoflicensingWindows.
135.
1.
MicrosoftinitiallyofferedInternetExplorer4toOEMsinSeptember1997onaseparatediskfromWindows95andgaveOEMstheoptionoflicensingWindows95withoutit.
MicrosoftrecognizedthatInternetExplorer4couldbedistributedseparatelyfromWindowsandthat,onceaddedtothesystembyOEMsorendusers,itwouldhavethesamefunctionalityasifithadbeenbundledwithWindowsinthefirstplace.
i.
ADecember11,1997letterfromMicrosofttoOEMsnotesthatMicrosofthadinitiallyshippedIE4.
0totheOEMsaspartofa"supplementalreleaseofUpdatedWindowsFeatures"inlateSeptember.
GX1064,atMS66013683.
ii.
WhenaskedwhethertherewereanywaysinwhichinstallingtheversionofInternetExplorer4availableonthewebwouldresultinadifferentexperiencefortheuserinanyway,ascomparedwithreceivingWindows95andInternetExplorer4"integrated"onanewcomputer,Storkanswered"I'mnotawareofany.
"Stork,8/11/98,at48:9-52:24(DX2594).
135.
2.
ByDecember1997,however,Microsoftretractedthatoptionandinstead259requiredOEMstolicenseandinstallInternetExplorer4asaconditionoflicensingWindows95.
i.
GX418(MicrosoftbusinesstermswithToshiba)(sealed);GX410(MicrosoftbusinesstermswithDigitalEquipmentCorp.
)(sealed);GX538(MicrosoftbusinesstermswithPackardBellNEC,Inc.
)(sealed);GX625(MicrosoftbusinesstermswithMicronElectronics,Inc.
)(sealed);GX588(MicrosoftbusinesstermswithGateway2000Inc.
)(sealed);GX697(MicrosoftbusinesstermswithSonyCorporation)(sealed);GX1059(MicrosoftbusinesstermswithHitachiLTD)(sealed).
vii.
InMay1997,DavidColewrotetoPaulMaritzandMosheDuniethat"Theoverridingpriorityisgettingmarketshareup.
GettingIE4intomemphisispartofthat.
"GX626.
(4)MicrosoftalsotiedthebrowsertotheoperatingsystembyrefusingtolicenseOEMs,andrefusingtopermitOEMstooffertheircustomers,WindowswithInternetExplorer"uninstalled"136.
AlthoughMicrosoftdesignedInternetExplorerandWindowstobedifficulttoseparateandforcedOEMstolicensethecombinedproduct,itnonethelessprovidedareadymeansforuserstoremoveor"uninstall"thebrowser.
ButMicrosoftdeniedOEMstheoptionoflicensingWindows95withInternetExploreruninstalledandprohibitedOEMsfromofferingsuchaversionofWindowstotheircustomers.
(a)MicrosoftconfiguredInternetExplorerto"uninstall"inresponsetodemandforWindowswithoutInternetExplorer137.
MicrosoftconfiguredbothInternetExplorer3and4to"uninstall"fromWindows95throughthe"Add/Remove"controlpanel.
137.
1.
The"uninstall"featureremovestheend-user'sabilitytobrowsethewebwithInternetExplorerbutdoesnotadverselyaffectothersoftwareinstalledonthecomputer.
i.
ProfessorFeltentestifiedthatInternetExplorer3canberemovedfromWindows95throughMicrosoft's"Add/Remove"controlpanel.
Felten260Dir.
23-24(explainingtheprocess);seealsoGX1202(videotapeddemonstrationofthatprocess).
ProfessorFeltenalsotestifiedthatthatprocess"hasnoapparenteffectonthenonWebbrowsingfunctions"ofWindows95.
FeltenDir.
27.
ii.
AMicrosofttechnicalsupportarticleentitled"CannotUninstallMicrosoftInternetProductsinOSR2"describesatwo-stepprocessforremovingIE3fromOSR2usingtheAdd/RemoveProgramsControlPanel.
ThearticledoesnotdescribeanyadverseeffectoftheremovalofInternetExplorer3onanynonbrowsingfunctionalityprovidedbyWindows95.
GX1367.
iii.
ProfessorFeltentestifiedthatInternetExplorer4canalsoberemovedfromWindows95viathe"Add/Remove"controlpanel.
ThatprocesscausesthesystemtoreverttothepreviousversionofInternetExplorerinstalledonthesystem(or,inthecaseofanOEMversionofWindows95originallyshippedwithInternetExplorer4,toInternetExplorer3).
InternetExplorerwebbrowsingcanthenbeentirelyremovedfromthesystembyfollowingthe"remove"procedureforthatearlierversion.
FeltenDir.
32;GXs165,166,and172(MicrosoftKnowledgebasearticlesdescribingthatprocess).
iv.
AfterperformingexperimentsonversionsofWindows95andIE,GlennWeadockconcluded:"TwopracticalmethodsexistofremovingInternetExplorer3.
02fromaWindows95machine.
OnecanruntheMicrosoft-supplieddeinstallationprogramtoeffectivelydisabletheuser'sabilitytorunthewebbrowserprogram,whileleavingenhancementstooperatingsystemfilesinplace.
(NotethatthisoptionisapparentlynotavailabletoOSR2users,butitseffectscanbesimulatedbyreinstallingInternetExplorer3.
02usingthedownloadableversionfromMicrosoft'sWebsite,andthendeinstallingasonewoulddoonanearlierversionofWindows95.
)Alternatively,onecouldrevertthesystemsothatitcontainstheoriginalversionsoftheDLLfilesthattheInternetExplorer3.
02installationenhances.
EithermethodresultsinafullyfunctioningWindows95system,althoughthesecondmethodmayresultintheremovalofenhancementsthatsomeapplicationsoftwarevendorsmayusefortheirconvenienceinprovidingInternet-relatedfeaturestousers.
"DX1715,atATR22876.
v.
Microsoft'sAllchinconcededthattherewere"avarietyofways"toremoveInternetExplorerfromWindows95.
Allchin,2/2/99pm,at4:21-24.
261137.
2.
MicrosoftconfiguredInternetExplorerto"uninstall"inresponsetodemandforanoperatingsystemwithoutInternetExplorer.
Indeed,Microsoftadvertisedtoendusersthatthe"Add/Remove"controlpanelcouldbeusedtoremoveInternetExplorerfromWindows95.
i.
AWebpagefromMicrosoft'swebsiteentitled"TheIEChallenge"encouragescustomerstoinstallanduseInternetExplorer3.
0,andnotes"IEUninstallsEasilyifyouwanttouseanewerversion,orsimplygetridofit(andsodoesNavigator!
).
"GX352.
ii.
Microsoft'sWebsitedescribes"HowtoUninstallInternetExplorer4.
0,"andlistssituationsinwhichausermightwanttotakethataction.
GX164;seealsoGX165(describingadifferentmethod);GX166(describinghowto"manually"uninstallInternetExplorer4.
0);GX170(MicrosofttechnicalarticledescribinghowtouninstallInternetExplorer4.
0inWin95andWinNTusingAdd/Remove);GX172(describinghowtoremoveInternetExplorer4.
0fromWin95usingIEREMOVE.
EXE).
iii.
DavidColetestifiedthatMicrosoftdesignedInternetExplorer3toAdd/RemovefromWindows95because"usershavegivenusfeedbackthattheywouldlikechoicesaboutwhattheyseeontheirdesktopandtheydon'tseeontheirdesktop,andinthatparticularcasewehadfeedbackfromcorporatecustomersthatwantedtopreventaccesstotheInternet,sowhenthey--theybuyanewmachinefromaPCmanufacturer,theywanttheabilitytoremoveeasyaccesstotheInternetsotheiremployees,youknow,aren'tspendingtheirtimeoutontheWebdoingwhatever.
"ColethentestifiedthathavingAdd/Removecapabilityaddressedthatconcernbyremoving"theobvioususer-accessiblemeanstorun--torunInternetExplorer.
"ColeDep.
,1/13/99,at395:7-396:6.
(b)"Uninstalling"InternetExplorerremovestheInternetbrowserproduct138.
Softwareproductsroutinelysharecode.
Asinglefile--inthecaseofWindows95and98calledadynamiclinkedlibrary--maybeusedbymanydifferentprograms,regardlesshowthefileoriginallycametobeinstalledonthesystem.
138.
1.
AnoperatingsystemlikeWindowsmakessharedcodeavailableforuseby262alloftheapplicationsonthesystem.
MicrosofthasdesignedWindowssothatmanyofthefilesthatperformbasicfunctions,likedrawingawindowonthemonitor,canbeusedbythird-partysoftwareapplications.
i.
ProfessorFarbertestifiedthatsoftwaredevelopers"writetheirprogramswiththeexpectationthatcertainfunctionscanandwillbeperformedbytheoperatingsystemofthecomputeronwhichthesoftwarewillbeused.
Theapplicationinvokestheoperatingsystembycallingroutinessuppliedaspartoftheoperatingsystem.
Theinterconnectionisreferredtoasanapplication-programminginterface(API).
"FarberDir.
20.
ii.
ProfessorFeltentestifiedthat"IEWebbrowsingusessomecodethatisspecifictoIEWebbrowsing,andsomecodethatisshared(thatis,itsupportsotherfunctionsinadditiontoIEWebbrowsing).
ThereisnothinguniqueaboutIEWebbrowsinginthisregard:virtuallyallPCapplicationsmakeuseofsomeapplication-specificcodeandsomesharedcodethatshipswithWindows.
"FeltenDir.
61.
iii.
ProfessorFeltentestifiedthat"it'samistaketosaythatbecausecodeisinvokedinsomecase,thatcodeisspecifics[sic]towhat'shappeninginthatcase.
Thecodethatdetectskeypresses,forexample,isusedbyalmosteveryapplication.
AndsoifonewantedtoconcludethatthatcodewaspartoftheWebbrowser,Isupposeyoucould,butyouwouldalsohavetoconcludethatit'spartofthepersonalfinancepackage,it'spartofthemultimediaplayer,it'spartofthewordprocessorandeverythingelse.
Youhavetolookalittlebitmorecarefullythandoesthiscodegetusedinexecutingthisfunctionornot.
"Felten,12/14/98am,at59:6-18;Felten,12/14/98pm,at6:22-7:14("TouseanexampledifferentthantheoneIusedthismorning,anotherexample,youwouldlookatthecodewhichisabletodrawwindowsingeneral,drawwindowonthescreen.
Thatcodeisusedbyvirtuallyeveryapplication.
Andalthoughit'susedbyeveryapplication,it'snotreallyrighttosayit'spartofeveryapplication.
").
138.
2.
Sharedcodeisnot,however,theexclusiveprovinceofoperatingsystems.
Applicationsprogramscan,androutinelydo,alsosharecodewithotherapplicationsprograms.
i.
ProfessorFeltentestified:"WhenIusetheword'platform,'atleastallImeanisthatthisissoftwarethatoffersAPI's--softwarethatoffersservicestoothersoftware.
Andwhethersomethingisaplatformornotsaysnothingaboutwhetherit'spartoftheoperatingsystem,whetherithas263tobeshippedwiththeoperatingsystem,oranythinglikethat.
Idescribedbeforeallthethird-partyproductswouldserveasplatformsonWindows.
"ProfessorFeltenalsotestifiedthattheavailabilityofplatform-levelservicessavesworkforothersoftwaredevelopers,"regardlessofwhooffersthatplatformserviceandregardlessofwhetherit'spackagedwiththeoperatingsystem.
"Felten,12/14/98am,at52:13-53:5.
ii.
ProfessorFeltentestifiedthat"manyormostapplicationprogramsofferAPIsthesedaysand,ofcourse,theyarenotpartofanyoperatingsystem.
"Felten,6/10/99am,at53:25-54:2.
iii.
Microsoft'sDavidColeconcededthat"systemservices,"definedas"modulesofcodethatprovidefunctionforothermodulesofcode,"canbefoundinanysoftwarepackage,notjustoperatingsystems.
"ColeDep.
,1/13/99,at390:2-14.
iv.
MichaelDevlinconcededthatRational'sproductscalluponAPIsthatareprovidedbyMicrosoftapplications,suchasMicrosoftAccess,andevenbythird-partyapplications,inadditiontoAPIsprovidedbyWindows.
Devlin,2/4/99am,at41:6-42:3.
v.
RichardSchelltestifiedthatthefactthatInternetExplorercontainsDLLsdidnotchangehisconclusionthatitwasanapplication.
"Well,therearetwoissueshere.
Oneis:Doesthefactthatit'smadeupofDLLsmakeitnotanapplicationAndtheanswertothatisno.
LotsofapplicationsconsistofDLLsalongwithamainprogram.
Imean,youcanpickupanyapplicationthat'soutthere.
TherearelotsandlotsofDLLsthatcomealongwiththem.
Youjustgodownthe--pickupWindows95,gothroughthe--youknow,usingtheExplorer,youcanfindDLLsforeveryapplication,sothefactthatithas--thatthereareDLLsthatconstitutetheapplicationdoesn'tmakeitnotanapplication.
Thefactthattheyhappentobedistributedwiththeoperatingsystemalsodoesn'tmakeitnotanapplication.
Microsoftcan,does,hasdistributedDLLswiththeoperatingsystemthatarehelpersforotherthings,andit'stheirchoicetodistributethose--thosethings.
TheunfortunatefactofthematteristhatMicrosoftasamonopolistchooseswhattheydistributewiththeoperatingsystemwheneveritpleasesthem,andthentheysay,well,it'spartoftheoperatingsystem.
"SchellDep.
,9/15/98,at252:5-254:3(DX2587).
138.
2.
1.
ThevariousapplicationsthatcompriseMicrosoft'ssuiteofofficeproductivitysoftware,forexample,shareagreatdealofcode.
264i.
RobertMugliatestifiedthatMicrosoftOfficeis"anintegratedpackage"includingdistinctapplicationsknownasWordandExcel,whichwere"designedtobeintegrated"togetherintoOfficebutthatMicrosoftnonethelessdistributesWordandExcelseparately.
"ThewayImightsaythatisthatOfficeisanintegratedpackageoverall.
Itwasdesignedtobeintegrated.
Weproduced,becauseourcustomerswouldlikeustoproduceit,aseparateword-processingprogramthatwederivedfromtheoverallintegratedOfficepackageandaseparatespreadsheetprogram.
"Muglia,2/26/99pm,at67:17-70:3.
138.
2.
2.
JavavirtualmachinesareshippedintheJavaruntimeenvironmentwithJava"classlibraries"thatarefreelyavailablefortheuseofanyoneprogramminginJava.
i.
JamesGoslingtestifiedthatJavavirtualmachinesincludeacollectionofcodecalledtheJavaclasses,whichprovidebasicbuildingblocks(or"APIs")thatJavadeveloperscanuseintheirprograms.
Gosling,12/2/98am,at47:14-49:10.
ii.
GoslingtestifiedthatSunandothersalsomakeadditionalJavaclasslibrariesfreelyavailabletodevelopers,whomustthenensurethattheyarepresentontheenduser'smachine.
Gosling,12/2/98am,at56:23-57:16.
139.
Becauseapplicationsmaysharecodewitheachotherandwiththeoperatingsystem,whenanapplicationisaddedtoWindows,thepertinentsharedcodemayormaynotbeloaded,andwhentheapplicationisremoved,sharedcodegenerallyisleftbehind.
139.
1.
WhenanapplicationisaddedtoWindows,itroutinelycheckstomakesurethatallofthesharedprogramlibraries,orDLLs,thattheapplicationinvokesarepresent.
Typically,ifanyofthoseDLLsaremissing,orpresentinanoutdatedversion,theapplicationwillinstallthem.
i.
WeadocktestifiedthatapplicationsthatchangeWindowsDLLsarecommon.
Weadock,11/17/98am,at25:15-26:10.
265ii.
Boeing'sScottVeseytestifiedthat"manyapplicationsdomakechangesintheWindowssystemsubdirectory.
"VeseyDep.
,1/13/99,at153:21-23(DX2596).
iii.
CarlBass,ChiefTechnicalOfficerandVicePresidentofEngineeringatAutodesk,testifiedthatAutodesk'sprincipalproduct,AutoCAD,usestheWININETfileincludedwithInternetExplorer3.
0and4.
0andthat,"ifthenecessaryversionisnotpresent,oriftheversionofWININETontheuser'sPCisolderthantheversionincludedwithAutoCAD,theprogramwillinstalltheversionofWININETthatisbundledwithAutoCAD.
"Fisher165.
139.
2.
Conversely,itiswell-recognized--includingbyMicrosoft--thatsharedDLLsshouldbeleftbehindwhenremovingsoftwareproductsfromamultiproductsystem.
i.
ProfessorFeltentestifiedthat"leavinginplacesharedfilesthatperformotherfunctionsconformstotheordinarywayinwhichsoftwareapplicationprogramsareremoved.
"FeltenDir.
57.
ii.
Page29ofMicrosoft'sHandbookforApplicationssuggests:"Userdatafilesincludingthefollowingshouldremainontheharddisk:Resourcesthatotherprogramsmightuse,suchassharableDLLs,sharablefonts,andsharableRegistryentries.
Itisbettertoerronthesideofsafetyregardingotherapplications.
IfyouarenotsurewhetherremovingaDLLmightharmotherapplications,itisbettertoleaveitbehind.
"GX431,at29.
140.
Accordingly,itiscommonplacetodescribeaproductashavingbeen"removed"fromamulti-productsystemevenwhenthesharedcodethatisusedanddistributedbythatproductandothersremainsbehind.
i.
WilliamHarristestifiedthat"removinganapplicationdoesnotmeanremovingallcomponentsoftheapplication,inotherwordsitdoesnotrequiredeletingcomponentssharedbyotherapplications.
Quicken,likemostapplications,utilizesharedcomponentsofsoftwarecode,or'DLLs'.
AnytimemultipleapplicationsshareaDLL,andyouremoveoneoftheapplicationsandthesharedDLLalongwithit,theotherapplicationwillnolongerworkproperly.
Soforexample,ifQuickencalledonaDLLthatwasusedbyanotherapplication,likeInternetExplorer,andanenduserremovedQuickenandthesharedDLL,theotherapplicationwouldnotworkproperly.
Thisiseasilyavoided,though,byretaining266thesharedDLLwhenremovingoruninstallinganapplication.
"HarrisDir.
86.
ii.
ProfessorFeltentestified:"Thecodethatdetectskeypresses,forexample,isusedbyalmosteveryapplication.
AndsoifonewantedtoconcludethatthatcodewaspartoftheWebbrowser,Isupposeyoucould,butyouwouldalsohavetoconcludethatit'spartofthepersonalfinancepackage,it'spartofthemultimediaplayer,it'spartofthewordprocessorandeverythingelse.
"Felten,12/14/98am,at59:6-18;Felten,12/14/98pm,at6:22-7:14("TouseanexampledifferentthantheoneIusedthismorning,anexample,youwouldlookatthecodewhichisabletodrawwindowsingeneral,drawwindowsonthescreen.
Thatcodeisusedbyvirtuallyeveryapplication.
Andalthoughit'susedbyeveryapplication,it'snotreallyrighttosayit'spartofeveryapplication.
").
141.
Becausetheysharecodewithboththeoperatingsystemandwitheachother,softwareproductscommonlyaredefined--includingbyMicrosoft--accordingtothefunctionalitytheysupplytotheconsumer,ratherthanbythecodetheydistribute.
i.
GlennWeadocktestifiedthat"bothindustryprofessionalsandcomputercustomersthinkofasoftwareproductmoreasthatwhichenablesasetofrelatedfeaturesthanasacollectionofspecificfiles.
Forexample,whenareviewerevaluatesasoftwareproductinacomputermagazine,thereviewertypicallyfocusesontheproduct'sfeatureset.
.
.
.
Thelistoffilesthatcomeinthebox,orthelistofcodeunitsthatthosefilescontain,israrelyifeverprovided.
"WeadockDir.
15.
ii.
Weadockalsotestifiedthatdefiningsoftwareproducts"asaparticularcollectionoffilesisultimatelyimpossibleifcodeunitswithinthesamefileareshared,eitherbymultipleapplicationsorbyasingleapplicationandanoperatingsystem.
.
.
.
Attemptingtodefinesoftwarestrictlyasacollectionoffilesisafruitlessexercisewhensomeofthosefilesperformdoubledutyindifferentcontexts.
"WeadockDir.
14.
iii.
JohnRosetestifiedthat"consumerswanttopurchaseapersonalcomputerthatallowsthemtoview,communicate,ormanipulatevisualgraphicsdisplayedonthepersonalcomputer'sscreenregardlessofwhetherthedataorsoftwarecodethatrespondstothemanipulationresidesonthepersonalcomputer'shard-diskdrive,aCD-ROM,oronacomputerthatmaybecontinentsaway.
Forbasicfeaturesofthecomputingexperience,itisirrelevanttouserswhetherthefeatureisincorporatedinapplicationoroperatingsystemsoftware.
"RoseDir.
22.
iv.
JonesdescribedInternetExplorerfortheMacintoshas"thethingthatwilllet[our267customers]goanddeployandtakeadvantageoftheservicesontheInternetandcomputingontheInternet.
"JonesalsotestifiedthattheInternetExplorer5package"containsasetoffeaturesthatpeoplecanusetobrowsetheWeb,thatISVscantargetandICPscantarget.
"JonesDep.
,1/13/99,at555:18-556:7.
v.
CarlStorktestifiedthat:"Ifyouweretotrytosaythebrowserisjustviewingwebpages,itreallywouldn'tbeveryinterestingforendusersbecausetheInternetissomuchmorethanthat"including"communicationsplumbing,thingslikeTCP/IPstacks,dial-upnetworking,PPP.
ProxyServerperhaps.
ThingslikeURLresolution,HTMLrendering,playingwithvariousformats,whetherit'sthingslikeactiveserverpagesorActiveXcontrols.
Javaoutputs.
Mediastreams.
Supportiveprotocolstosendandreceivee-mail.
Theability--possiblytheabilitytotransferthroughthingslikeFTP.
Idon'tknowifImentionedtheabilitytohaveJavaapplets.
ImeanforanInternetexperience--forthingstobeattractive,thingsneedtoworkseamlessly,whichmeansyouneedabroadstreamofcapabilities.
"StorkDep.
,1/13/99,at759:10-760:8.
vi.
ProfessorFeltentestifiedthatbecausethereisalongcodepathnecessarytoperformalmostanyfunctioninamoderncomputer,"itwouldbeamistaketosaythatbecausesomethingisonthatcodepath,it'snecessarilypartoftheapplicationthattheuserisusing.
"Felten,12/14/98am,at57:20-58:19.
vii.
Weadockpointedoutthat"Microsoft'swordprocessingsoftwareproduct,WordforWindows,shipswiththefileCOMCTL32.
DLL,butthatfileisalsousedbyWindows95.
"WeadockDir.
14.
viii.
Weadocktestifiedthatapplicationsthatchangesharedprogramlibraries,orDLLs,thatareshippedwithWindowsarecommon.
SuchapplicationsincludeNortonUtilitiesandMicrosoftWord.
"Idon'tknowanybodythatthinksthatMicrosoftWord,orNortonUtilities,orMicrosoftGolf,oranyoftheseothervariousproductsthatmayincludeupdatedDLL'sarepartofWindows.
Theyareseparateapplications.
ThefactthatanapplicationincludesWindowsDLL'sorDLLupdatesdoesnotmakeitthereforepartoftheoperatingsystem.
"Weadock,11/17/98am,at25:15-26:10.
ix.
ProfessorFeltentestifiedthatWindowsExplorerisconfiguredtoallowother,entirelyseparateapplicationstodisplayinformationinitsembeddedsubwindows.
But"thefactthatacompletelyseparateapplicationlikeMicrosoftWordorlikesomeISVapplicationcandisplaysomethinginthatembeddedsubwindow,doesnotimplythatMicrosoftWordorthatISVapplicationispartofWindowsExplorer.
ItjustsaysthatitcandisplaysomethinginsidethatwindowframethatWindowsExplorerputsup.
"Felten,12/14/98pm,at49:25-50:14;Felten,12/14/98pm,at50:15-25("Q:Anddoesthefactthatotherapplicationslike268MicrosoftWordor,perhaps,third-partyISVapplicationscanusetheembeddedwindowasaviewertodisplaythingssayanythingaboutwhetherornotthatapplicationispartoftheoperatingsystemA:No.
Certainly,ifitdid,onewouldhavetoconcludethatfromthispicturethatMicrosoftWordispartoftheoperatingsystem,andweknowthat'snotthecase.
").
142.
Asaresult,whetheraproduct,includingInternetExplorer,ispresentonaPCfromtheperspectiveofendusersdependsonwhetheritsfunctionalitycanreadilybeaccessed,notonwhethersomeofthecodethatisnecessarytosupplythosefunctionsmaybepresent.
142.
1.
Itiscommoninthecomputerindustryfortheunderlyingcodenecessarytoemployasoftwareproducttobeinstalledonacomputer,butinadisabledandunusableform.
Whentheenduseractuallypurchasestheproduct,heorshethenreceivesan"activationkey,"orpassword,whichenablesthedormantfunctionality.
i.
Weadocktestifiedthat"itispossible,andsometimesamatterofcommercialpractice,tohavesoftwarethatexistsonadiskorPCinthesensethatitscodemodulesarephysicallypresent,butdoesnotexistinanypracticalwayfromtheuser'sstandpointbecausethesoftwareishidden,protected,orotherwisedisabled.
"WeadockDir.
19(collectingexamples).
ii.
Weadocktestifiedthat,asavariationonthesametheme,softwareisoftenpromotedbymakingtrialversionsfreelyavailablefordownloadfromtheInternet.
Thatsoftwarefunctionsforatrialperiod,butthendisablesitselfunlesstheuserpurchasesanactivationkey.
"ExpiredtrialwareorsharewarephysicallyexistsonthePCintermsofbitsandbytes,butonceexpired,theprogramiseffectivelyabsentuntiltheuserpaysforit.
"WeadockDir.
19.
iii.
PhillipBarretttestifiedthatthewayRealNetworks'products"PlayerandPlayerPlusarerelatedisbasicallythere'soneplayer.
PlayerPlusfeaturesareactivatedbyalicensekeythatonegetsbycomingtoourwebsiteandgoingthroughasecureformandpurchasingthatlicensekey.
"BarrettDep.
,1/13/99,at112:17-113:2.
142.
2.
Accordingly,itiscommonlyacceptedintheindustrythatasoftware269productisnotpresentonaparticularmachineunlesstheenduserhasaccesstothefunctionalityitsupplies.
i.
Weadocktestified:"TheexistenceofasoftwareproductonanyparticularPC--thatis,whetheritiseffectivelypresentorabsentfromthecustomerstandpoint-dependsonboththepresenceofthesoftwareenablingtheproduct'sfeatureset,andthemeanstousethatfeatureset.
"WeadockDir.
18.
ii.
Weadocktestifiedthatcorporatetechnicalsupportmanagersconsider"inhibitingtheuser-accessiblemeansofaccesstoasoftwareproduct(e.
g.
,anicononthe'desktop'screenoftheuserinterface,orentriesinmenusofprogramoptions)hasthesameeffect,fromthesupportcoststandpoint,ofremovingaprograminitsentirety.
.
.
.
Becauseremovingtheuser-accessiblemeansofusingabrowserproductmakestheproductdisappearfromtheperspectiveoftheuser,supportcostsaresignificantlyreduced.
.
.
.
"WeadockDir.
28b.
iii.
Barretttestifiedthat,althoughausermayhavethebitsofcodethatimplementthePlayerPlusfunctionalityinstalledontheirmachine,"Fromtheuser'sperspective,whattheyhaveisthestandardplayer"untiltheypayforanupgradekey,becausetheyareunabletoaccessthePlayerPlusfeatures.
BarrettDep.
,1/13/99,at113:11-114:4(GX1450).
142.
3.
Thus,removingtheabilitytobrowsetheWebusingInternetExplorereffectivelyremovestheInternetExplorerproduct.
i.
JonKiestestifiedthat"ifweprovide"Windows95"withoutInternetExplorerinthemenuitem,thecustomersfeellikethere'snobrowserinstalledwhetherornottheactualcodemayexistbelowthesurfaceortheuserinterface.
"KiesDep.
(played12/16/98am),at27:1-16.
ii.
ProfessorFeltentestified:"IfyouhaveremovedtheabilitytobrowsetheWeb,asfarastheuserisconcerned,Webbrowsing--theWebbrowserisgone.
"Felten,12/14/98am,at33:5-14.
iii.
ProfessorFishertestifiedthat"abrowserconsistsoftheabilitytodothethingsIdescribed.
Now,totheextentthatremovingthevisiblemeansofaccessremovesthatability,Isupposeonecouldsaythatwithoutthevisiblemeansofaccess,thereisn'tabrowser.
"Fisher,1/6/99am,at8:19-24.
FisherfurthertestifiedthatMicrosoft'stieofInternetExplorerand270Windows98would"fromaneconomicperspective""disappear"if"MicrosoftremovedallmeansofaccessingInternetExplorercodeorsoftwaretechnologywithintheWindows98productasMicrosoftdesignedit.
"Fisher,1/6/99am,at9:21-10:4.
iv.
Microsoft'sColetestifiedthat,"ataminimum,"auserwhoinvokesMicrosoft'sAdd/Removeproceduretoremoveasoftwareproduct"mightexpectthevisibleaspectsoftheprogramorupdateorwhateverithappensnottobethereanymore,soinappearanceitmightbegonefromtheenduser'sperspective.
"ColeDep.
,1/13/99,at394:4-9(GX1465).
(c)MicrosoftuseditsoperatingsystemmonopolytodenyOEMstheabilitytolicenseorsellWindowswithInternetExploreruninstalled143.
AlthoughMicrosoftprovided,throughthe"uninstall"capability,areadymeansforuserstoremoveInternetExplorerfromWindows95,MicrosoftrefusedtopermitOEMstoobtain,orlicensetotheircustomers,WindowswithInternetExploreruninstalled.
143.
1.
MicrosoftdeniedGateway'srequestforaversionofWindowsfromwhichInternetExplorerhadbeenuninstalled.
i.
InalettertoGatewayaddressingGateway'searlierstatement,"WewantIEtohaveuninstall(forasmuchofthecodeascanberemovedwithoutdisablingthesystem),"Microsoftrespondsbysayingthat"InternetExplorertechnologiesareanintegralpartofWindows98andcannotbeuninstalled.
.
.
.
Consequently,theconceptofan'uninstall'lackspracticalsignificanceinthiscontext.
"GX1073,atMS980204593.
143.
2.
MicrosoftprohibitedtheOEMsfromsellingPCswithWindowsinstalledandInternetExploreruninstalled.
i.
SeesupraPartV.
B.
2.
c;127,129,132,135.
143.
3.
MicrosoftalsopreventedOEMsfromremovingtheInternetExplorericonoranyotheraspectofthebrowser.
i.
SeeinfraPartV.
C.
1.
a;177;PartV.
C.
2.
a.
(1);199.
271e.
MicrosoftalsotiedInternetExplorertoWindows98144.
MicrosoftdeterminedthatitcouldbetterexcludeNetscapebothbycontinuingitsweldingofbrowserandoperatingsystemandbymakingtheproductsfurtherinseparable.
ItdidsowithWindows98.
(1)MicrosoftconcludedthatdefeatingNetscaperequiredittotieitsbrowsermoretightlytotheoperatingsystem145.
Inlate1996andearly1997,Microsoftdesignedandtested,andconsideredshipping,aversionofWindows98that,likeWindows95,wasmerelybundledwithInternetExplorer3components,ratherthanmoretightly"integrated"withInternetExplorer4.
i.
InDecember1996,DavidColeandhisInternetExplorerdevelopmentteamdiscussed"de-coupling"theInternetExplorer4browserfromtheWindowsshell.
AccordingtoCole,"Afterthinkingaboutthisforthepastcoupleofdays,it'scleartome(andothers)thatwemustde-coupletheBrowserfromActiveDesktopandtheshellintegrationfeatures.
ActiveDesktopandthenewshellUImustbeacompletelyoptionalcomponentforusersandcorporations.
ThedefaultistheIE4browserwithouttheshellenhancements.
Iftheuserinstallsthenewshell,theywillhavesomethingstolearnandpayaperformanceprice.
Bycouplingthesetogether,Ithinktheoverallefforthassuffered.
We'vegotacompromisednewshelldesignthattriestobetooWindows95shellcompatibleinmyview.
Wedon'thaveHTMLonthedesktopbecauseweareworriedaboutperformance.
Butevenincompatibilitymode,performancewilldegradeandtherewillbedifferencesthatcouldstalladoptionofthebrowserplatform.
.
.
.
WhatIreallywantisabrowserandActiveDesktopwhichdonotchangeshell32atall,oratmostsomecarefull[sic]hooksareaddedandweshipiteverywhere.
Idon'tunderstandwhymostofActiveDesktopcan'tbedonewithoutanyshellchangesatall.
"Amemberofthedevelopmentteamrespondedthat"It'sgoodtohaveadecisionlikethis.
Weneedtoinvestigatehardwhatwewillloose[sic]ifwedon'tupdateshell32.
dlleveninthefullIE4.
0install--that'sanoptionwe'veneverconsidered.
Itwilldefinitelysimplifyourtestingmetrixandisagoodwaytocutdev/testingcost.
"GX46.
ii.
InMarch1997,JimAllchinreportedtoPaulMaritzonthestatusofInternetExplorer4andMemphisandlistedoptions,including"dropIE4fromMemphisandNT5.
Thereisastrongpushtodothis.
Wearewastinghundredsofpeople'stimeonbuildsthatdon'twork,etc.
Frankly,wemayhavetodothisanywaytomakeprogress.
Ifwedropit,thenweknowwemusteithergooutwithoutIE4in272thefinalorwehavetobehonestinthatbothsystemswilltakeperhapsahalfyearslipbecausewewouldhavetofixthequality/performance/sizelaterandgothroughbetatestsmuchlater.
"GX110.
iii.
InMarch1997,MeganBlissaskedCarlStorkwhether"IE4andMemphisarejoinedatthehip.
"Storkresponded,"Wedonothaveclosureontheissuesbelowatpresent.
.
.
IE4isnotbeingdevelopedasjoinedtoMemphisatthehip—atpresentMemphisisanafterthought.
ItisnotoneofthefourmaintestplatformsforIE4.
WearebeingencouragedbytheIE4teamtoreleaseaMemphisBeta1withtheoldshell.
Weneedtorethinktheplans&makesurewehaveaplanthatmakessense.
TodayIwouldnottellanyonethatitispossibletoshipanintegratedIE4/Memphisproductin1997.
"GX160.
vi.
BillVeghteconcededthatMicrosoftconsideredshippingWindows98withInternetExplorer3insteadofInternetExplorer4becausetherewasOEMdemandforhardware-relatedimprovements(e.
g.
,USBsupport)thatwerereadyforinclusioninMemphispriortothetimeInternetExplorer4wasready.
HealsotestifiedthattheyreleasedoutsideMicrosoftaversionofMemphiswithoutInternetExplorer4.
VeghteDep.
,1/13/99,at783:2-786:8(GX1477).
vii.
ChrisJonesalsotestifiedthatMicrosoftshippedapre-betaversionofWindows98tohardwaremanufacturersthatdidnothaveInternetExplorer4.
JonesDep.
,1/13/99,at536:8-537:3.
viii.
JonathanRobertswrotetoAllchin,Dunie,andStorkinMarch97todiscussoptionsregardingtheproposedbundlingofInternetExplorer4andWindows98.
Oneofthoseoptionswasto"DecoupleMemphisandIEandshipMemphisinJuly/AugustandconnectwithIEintheOEMchannelwhenitships.
"CarlStorkrespondedthat"CurrentlyIE4issoimmature(andbig&slow&compat-bugprone)thatitisimpendingourselfhostingprocess.
WefindtonsofbugsbutsomanyareinIEcomponentsthatourtest&reproeffortsarebecomingmeaninglessontheOS.
Wearealsofindingmoreandmoreresistanceontheteamtoinstallthebuildsbecausethingsdon'twork.
IamatthestagewhereIdonotrecommendthatwereleaseanythingwithIE4integratedunderthenameofaMemphisbeta.
Customerswouldexperiencetoomanyproblemsandtheperformancewouldbeunacceptableaswell-itwouldbesobadastoblemishthereputationofMicrosoftandofWindows.
.
.
.
Moreimportantly,atthispointitisgettinginthewayofvaliddevelopmenttesting&reproworkforMemphis.
"Robertssummeduptheexchangewiththefollowing:"I'mdepressed.
Iwasn'tawarethingsweresobadwithIE.
Thismakesthefollowingtrade-offverypainful,HardwaresupportforSpringmachinesandsomeTCObenefitsvsIEpenetration.
"GX355,atMS7003001.
273146.
Microsofteventuallyconcluded,however,thatinordertowinthe"browserwar"itneededtocreateastrongertiebetweenInternetExplorerandWindowsthanitsOEMlicensingpracticesachievedwithWindows95.
ThecontemporaneousdocumentsshowthatMicrosoft'sdecisiontofurtherbindInternetExplorerandWindows98wasdriven,notbythetechnicalmeritsofanysuchintegration,butinsteadbyastrategicdesiretodriveupInternetExplorer'smarketsharevis-a-visNetscapeNavigator.
i.
InDecember1996,JamesAllchinwrotePaulMaritzane-mailentitled"concernsforourfuture":"EnsuringthatweleverageWindows.
Idon'tunderstandhowIEisgoingtowin.
ThecurrentpathissimplytocopyeverythingthatNetscapedoespackagingandproductwise.
.
.
Maybebeingfreehelpsus,butoncepeopleareusedtoaproductitishardtochangethem.
.
.
.
MyconclusionisthatwemustleverageWindowsmore.
TreatingIEasjustanadd-ontoWindowswhichiscross-platformlosingourbiggestadvantage--Windowsmarketshare.
WeshoulddedicateacrossgroupteamtocomeupwithwaystoleverageWindowstechnicallymore.
.
.
Weshouldthinkfirstaboutanintegratedsolution--thatisourstrength.
"GX47;GX655,atMS7003375(oneofthe"ObjectivesforMemphisRelease"isto"provideshipvehicleforstrategicinternetcomponents").
ii.
OnJanuary2,1997,AllchinwrotetoMaritz:"Youseebrowsershareasjob1.
.
.
.
Idonotfeelwearegoingtowinonourcurrentpath.
WearenotleveragingWindowsfromamarketingperspectiveandwearetryingtocopyNetscapeandmakeIEintoaplatform.
Wedonotuseourstrength--whichisthatwehaveaninstalledbaseofWindowsandwehaveastrongOEMshipmentchannelforWindows.
.
.
.
IamconvincedwehavetouseWindows.
Thisistheonethingtheydon'thave.
.
.
.
Wehavetobecompetitivewithfeatures,butweneedsomethingmore:Windowsintegration.
.
.
.
IfyouagreethatWindowsisahugeasset,thenitfollowsquicklythatwearenotinvestingsufficientlyinfindingwaystotieIEandWindowstogether.
""Memphismustbeasimpleupgrade,butmostimportantly,itmustbekilleronOEMshipmentssothatNetscapenevergetsachanceonthesesystems.
"GX48.
iii.
MaritzrespondedtoAllchin'sJanuary2,1997email(GX48)byagreeing"thatwehavetomakeWindowsintegrationourbasicstrategy"andproposingthatMicrosoftholdthereleaseofMemphis(Windows98)to"sync"withIE4.
GX49.
Allchinagreedtothatplan,arguingthatinsteadof"lettingpeoplethinkaboutwhethertheyshouldchooseNav/Communicatorvs.
IE,"Microsoft"shouldmovetheargumenttoWindows(MemphisandNT5.
)anddriveitbecauseofZAW274[ZeroAdministrationWindows],etc.
asthereasontouseIE.
"GX50.
Allchinalsoarguedthatintegration"istheonlythingthatmakessense,evenifOEMssuffer.
"GX50.
iv.
InaJanuary1997internalMSpresentationonthe"NCandJavaChallenge,"inasectioncalled"responsesummary,"thefirstbulletpointis"IncreaseIEshare-integratewithWindows.
"GX51,atMS7005536.
v.
InanemailtoBillGatesandPaulMaritzonFebruary18,1997,Allchinwrotethat"Iamconvincedthepathwe'reonisthewrongone.
WeareplayingintoNetscape'sstrengthsandagainstourown.
.
.
.
WefocusattentiononthebrowserbattlewherewehavelittlemarketshareinsteadoffocusingthebattleatintegratingthingsintoWindowswherewehavemarketshareandagreatdistributionchannel.
"GX354.
vi.
ChristianWildfeuer,reportingontheresultofafocusgroupstudyinFebruary1997oftheupcomingreleaseofWindows98,observedthatmostofthestudygroupwere"Navigatorusers.
Theysaidtheywouldnotswitch,wouldnotwanttodownloadIE4toreplacetheirNavigatorbrowser.
However,onceeverythingisintheOSandrightthere,integratedintotheOS,'intheirface'sotospeak,thentheysaidtheywoulduseitb/ctherewouldbenomoreneedtousesomething'separate.
'Thestunninginsightisthis:TomakethemswitchawayfromNetscape,weneedtomakethemupgradetoMemphis.
.
.
.
ItseemsclearthatitwillbeveryhardtoincreasebrowsermarketshareonthemeritsofIE4alone.
ItwillbemoreimportanttoleveragetheOSassettomakepeopleuseIEinsteadofNavigator.
"GX202,atMS7004343.
vii.
JonathanRobertswrotetoAllchin,Dunie,andStorkinMarch1997todiscussoptionsregardingtheproposedbundlingofInternetExplorer4andWindows98.
Robertsframedtheissueasa"trade-offbetweenensuringwehavenewdevicesupportintheOEMchannelfortheSpringlineofmachinesandgeneratingtwentyorsomillionmoredollarsinRUPupgradesversusdrivingIE4.
0penetrationandasimplercustomerproposition.
Basedonmyunderstandingofthecompanypriorities,weshouldoptfortheplanofrecordandkeepthemsynced.
.
.
HoldMemphisforIE4.
0andshipinAugust-December.
Pros:ThisisabsolutelythebestwaytodriveIE4.
0penetration.
Customerfeedback,includingthatfromover200folksinover15focusgroups,indicatesthatpeoplewantthetwotobetiedtogether.
Iftheyaredecoupled,thenNavigatorhasagoodchanceofwinning.
Inabrowserbattle,victorywillgototheincumbent.
"GX355,atMS7003000.
viii.
InaJanuary7,1997e-mailtoAllchin,MaritzarguedthatMicrosoftshouldholdWindows98forIE4evenifitpushedthereleasedatebacktoAugustor275September.
"ThemajorreasonforthisistocombatNetscape.
Wehavetopositionthebrowserasgoingaway,anddodeeperintegrationonWindows.
ThestrongerwaytocommunicatethisistohaveanewreleaseofWindowsandmakeabigdealoutofit.
WewillthuspositionMemphisasWindows98.
IEintegrationwillbethemostcompellingfeatureofMemphis.
"GX53;seealsoAllchin,2/3/98pm,at27:12-17(agreeingwithMaritz'semail).
ix.
KumarMehtareportedinMarch1997that"basedonalltheIEresearchwehavedone"hisfeeling"isthatitisamistaketoreleasememphiswithoutbundlingIEwithit.
"Because"IEusersaremorelikelythanotherbrowseruserstogetitwiththeircomputers,.
.
.
effectivelywewouldbetakingawaythedistributionchannelofalmostaquarterofallIEusers.
"Moreover,"80%ofthosewhodonotuseIEsaytheyhavenoplanstoswitchtoit.
WhichmeansthatifwetakeawayIEfromtheo/s,mostnavuserswillneverswitchtous.
AlsofromallourresearchwithISandwebprofessionalsweknowthattheyeventuallyexpectustowinthebrowserwarbecauseIewillbebundledwiththeoperatingsystemandtheywillhavenorealreasontopurchasenavigator.
"JonathanRobertsrespondedthatMehta'sreport"validateswhyitisimportanttokeepIEwithMemphis.
"GX205;GX736,atMS980128504.
x.
Inane-mailtoAllchinonMarch20,1997,Robertswrotethat"InternetExplorerhasamuchstrongerchanceofwinningonceitisintegratedintotheoperatingsystem.
AnintegratedbrowsermakesNetscapeanonissue--asuperfluousproductforallbutthemostcommittedNetscapeuser.
"GX355,atMS7003002.
xi.
InJune1997,ChrisJonessentamemotoBillGatesentitled"Howtogetto30%sharein12months.
"Amongotherthings,Joneswrote:"WewillbindtheshelltotheInternetExplorer,sothatrunninganyotherbrowserisajoltingexperience.
"GX334,atMS980104683.
xii.
InJuly1997,MicrosoftexecutiveMosheDunie,commentingonaproposaltostopshippingtheWindows98shellwithInternetExplorer4afterthereleaseofWindows98,notedthatsuchaproposal"wouldcertainlyincreasesignificantlyWin98upgradesales.
Iknowthereisthebrowsersharecounterargument.
.
.
Butitisanintriguingthought.
.
.
"HereceivedthefollowingresponsefromPaulMaritz:"Itistempting,butwehavetorememberthatgettingbrowsershareupto50%(oremore)isstillthemajorgoal.
"(ellipsesinoriginal).
GX113.
xiii.
InDecember1997,AllchinwrotetoCole,Dunieandotherexecutivesthat:"Wehaveseveralgoalsfrommyperspectiveasacompany—nomatterwheretheworkisdone.
Thatiswhythisistough.
WehavetocontinuetowinagainstNetscapeonthebrowser.
Thismeansthatweneedtoconsiderdownlevelandxplatformsolutions.
Inaddition,itispossible(althoughthatisyettobeprovento276me)thatwemighthavetoshipmorefrequentlythanonceperyear.
AndatthesametimeweneedmoreintegrationwithWindows—bothtechnicallyandmarketing-wise.
Weneedthatforbusinessreasons(ignoringtheperceptionissueoftheDOJ).
Iseethisascritical.
Thisisahardbalance,butIfeelthatweneedtoslantthingsmuchmoretowardWindowswhilewestillaccomplishtheothergoalagainstNetscape.
"GX480.
(2)Toaccomplishthisobjective,MicrosoftmadethebrowserandtheWindows98operatingsystemmoredifficulttoseparateby,amongotherthings,eliminatingthe"uninstall"capabilityandhinderingusersfrommakingotherbrowsersthedefault147.
Toachieveitsobjectiveoffurtherimpedingbrowserrivals,MicrosoftmadeInternetExplorer4andWindows98moredifficulttoseparate.
147.
1.
WithWindows98,MicrosoftcontinuedtosupplyWindowsandInternetExplorerinaforminwhichtheunderlyingwebbrowsingroutinesandotherroutineshavealreadybeencombinedinthesameDLLs.
147.
2.
TheonlyfunctionaldifferencebetweenWindows98,ononehand,andWindows95combinedwithInternetExplorer4,ontheotherhand,isafewfeaturesthatMicrosofteasilycouldseparatelysupplyandwhichcannowbeobtainedbycombiningWindows95andInternetExplorer5.
i.
SeeinfraPartV.
B.
3.
c.
(1).
(b);159-161.
147.
3.
Thereare,however,otherdifferencesbetweenWindows95andWindows98.
Amongotherthings,Microsofteliminatedtheenduser'sabilityto"uninstall"InternetExplorerfromWindows98,despiteretainingtheuninstalloptionfornumerousotherfeatures.
i.
ProfessorFeltentestifiedthat,althoughtheWebbrowsingexperienceinWindows95OSR2.
5andWindows98isverysimilar,Microsoftdoesnot277provideamechanismforremovingInternetExplorerWebbrowsingfromWindows98.
FeltenDir.
35-37,52.
ii.
GX1366isaseriesofscreenshotsofWindows98's"Add/Remove"function,showingdozensoffunctionsthatcanbeaddedorremovedbytheuser,including,amongotherthings,internettools,desktopwallpaper,mousepointers,dial-upnetworking,virtualprivatenetworking,andhyperterminal.
InternetExplorerisnotoneofthem.
iii.
JamesAllchintestifiedthatMicrosoftprovidesareadymeansofremovingmanyfilesandfeaturesthatMicrosoftconsiderstobe"integrated"featuresofWindows(Allchin,2/2/99pm,at5:2-5)suchastheTCP/IPstack(Allchin,2/2/99pm,at7:12-15)anddial-upnetworking,Netmeeting,andthepersonalwebserver(Allchin,2/2/99pm,at10:3-11:11).
iv.
Whenaskedtoestimate"howmanyofthecomponentsofWindows98canbereadilyremovedbyproceduresthatMicrosoftmakesavailable,"Allchintestifiedthat"thenumberisgoingtobequitehigh,ifyouconsideralloftheapproachesfor,youknow,whichdriversorfilesystemsyou'reusingandeverything.
So,youknow,oneofthegreatthingsaboutWindowsisit'ssoconfigurableAllchin,2/2/99pm,at11:12-22.
147.
4.
MicrosoftwaswellawarethatitscustomerswantedtheabilitytoremovewebbrowsingfunctionalityfromWindows98butnonethelesschosetoeliminatethatfeatureinordertoforceadoptionofInternetExplorer.
i.
GatewayspecificallyrequestedthatMicrosoftprovideawaytouninstallInternetExplorerfromWindows98,inpartbecauseitwas"concernedthattheinstallationofthefullMSproduct(includingchannels)resultsinamuchslowersystemperformanceifthecustomerchoosesanalternatebrowserafterfullinstallationonIE4.
"Microsoftrefused.
GX1073,atMS980204593(4/24/98letterfromMicrosofttoGateway).
ii.
InresponsetoaCID,Gatewaystatedthat:GX652,atATR30008(sealed).
iii.
JoeBelfioretestifiedthathewasconcernedthattheomissionofanadd/removeoptionforInternetExplorerinWindows98wouldcreatea278"customersatisfactionissue,"inpartbecausesomeuserswouldhaveapplicationsthatwereincompatiblewithInternetExplorer4.
BelfioreDep.
,1/13/98,at366:8-11.
iv.
OEMsuniformlybelievedthattheyhadnochoicebuttolicenseWindows98.
RansomtestifiedthatPackardBellmust"pre-install100percentofitsconsumermachineswithWindows98"becauseitis"theonlyviablechoice.
"RansomDep.
(played12/16/98pm),at68:25-69:5;seealsosupraPartII.
A;15.
1(collectingsimilartestimonyfromCompaq,IBM,Gateway,andHewlett-Packardexecutives).
Inaddition,Microsoft'slicensesforWindows98forbidOEMsfromremovingInternetExploreroritsicon.
GX1190(sealed);GX660(sealed);GX458(sealed);seealsoinfraPartV.
C.
1.
a;177(collectingcitestootherOEMlicenses).
Thus,OEMswereforcedtodistributeInternetExplorer.
147.
5.
MicrosoftalsodesignedWindows98tooverridetheuser'schoiceofdefaultbrowserincertaincircumstances.
i.
ProfessorFeltentestified:"InallversionsofWindowsreleasedpriortoOSR2.
5,theDefaultBrowserisactivatedwhenevertheuseraskstoinitiateWebbrowsing.
"FeltenDir.
50.
ii.
ProfessorFeltenalsotestified,however,thatinsomecases"Windows98usesIE4WebbrowsingeveniftheuserhasspecifiedanotherbrowserastheDefaultBrowser.
Thereareseveralsituationsinwhichthiscanoccur.
First,whentheuserinitiatestheWebHelpfunctiondescribedinparagraph36,andchoosestheoptionofclickingonthe'SupportOnline'link,thesystemwillalwaysinitiateIEWebbrowsing,insteadoflaunchingtheDefaultBrowser,togototheSupportOnlineWebsite.
Second,certainmenusinWindowsExplorercontainURLShortcutscreatedbyMicrosoft.
Auserwhoselectsthe'HomePage'or'SearchtheWeb'URLShortcutfoundinthe'Go'menuinWindowsExplorerwillalwaysinitiateIEWebbrowsingtogototheparticularWebsite,ratherthanlaunchingtheDefaultBrowser.
Third,ifauserplacesaWebpageontheActiveDesktop,andthenclicksonaWeblinkonthatpage,thisactionwillagaininitiateIEWebbrowsingeveniftheuserhasdesignatedanotherbrowserastheDefaultBrowser.
Finally,WindowsExplorerallowsausertotypeintotheAddressBaracommandtosearchtheWeb.
Typingtheword"Go"followedbyaphraseorwordthatauserwantstosearchforontheWebwillinitiateIEWebbrowsingtodisplaytheresponsetothesearchrequest,regardlessoftheuser'schoiceofDefaultBrowser.
Thisisanexampleofwhattheindustryreferstoas"hard-coding,"inthiscase,279forcingtheuseofIEWebbrowsing.
"FeltenDir.
51.
iii.
BothProfessorFeltenandProfessorFarberdescribedthesignificantproblemsforPCuserscreatedbyInternetExplorerignoringoroverridingtheirchoiceofNavigatorastheirdefaultbrowser.
Forexample,ProfessorFarbertestifiedthat"thewayMicrosoftpackagesanddistributestheInternetExplorercausedrealproblems.
Mypersonalexperience,Ithink,isagoodexampleofthat.
ItriedtouseNetscape.
Ikeeptryingtouseitand,periodically,IinstallitandIkeepseeingIEpopupinfunnyplacesandinterferewithit.
Andsoasaproduct,itisverydifficulttouse.
Iamnotapersonthatwantstousemultiplebrowsers.
Ifocusonone,likeIfocusononewordprocessor.
It'sjusttoodifficulttouseoneandthensuddenlywhenerroroccurs,you'refacedwithanotherone.
"Farber,12/9/98am,at53:3-16;Felten,12/14/98am,at27:11-19,29:11-17;Felten,12/14/98pm,at14:7-11.
3.
ThereisnotechnicaloreconomicjustificationforMicrosoft'styingofInternetExplorerandWindows148.
MicrosoftcontendsthatitsforcedlicensingofInternetExplorerisjustifiedbynumerousbenefitsthatdependeitheronwhatitcallsits"integrated"designoritscontractualrestrictions.
ButcontemporaneousevidenceshowsthatMicrosoft'sconductwasmotivatedbyadesiretothwartrivalsandprotectitsoperatingsystemmonopolyratherthantobenefitconsumers,andotherevidencedemonstratesthatMicrosoft'sjustificationsarepretextual.
a.
Microsoft's"welding"ofitsbrowserthwartedthesubstantialdemandforWindowswithoutanInternetbrowser149.
Asaninitialmatter,Microsoft'srefusaltosupplyeitherWindows95orWindows98withoutwebbrowsing,anditscontractualprohibitiononOEMssupplyingsuchaproduct,thwartedconsumerdemandforabrowserlessOS.
i.
SeesupraPartV.
B.
1.
b.
(4);111.
150.
ThisreducedthevalueofWindowstocustomerswhopreferredabrowserlessoperatingsystem.
Indeed,asexplainedindetailbelow,Microsoft'styingarrangementinflicted280onanumberofcustomerssubstantialinefficienciesandconsumerharm.
i.
Dr.
Warren-Boultontestified:"EvenifInternetExplorerispreferredbysomeusers,itisnotpreferredbyallusers.
Consumerwelfareismaximizedwhenthemarketisresponsivetoconsumerdemand,notwhenafirmwithmonopolypoweroveroneproductrequirespurchasersalsototakeanunwantedproductormakesitdifficultorcostlyforthemtoobtainarelatedproducttheydesire.
"Warren-BoultonDir.
158.
b.
ThereisnotechnicalreasonforMicrosoft'srefusaltomeetdemandforWindowswithoutwebbowsing151.
Thereisnoreason--otherthanitscampaigntoprotectitsoperatingsystemmonopolythroughweakeningbrowserrivals--forMicrosoft'ssteadfastrefusaltomeetthedemandforWindowswithoutInternetExplorer.
Microsofteasilycouldhaveoffered,orpermittedOEMstooffer,theoptionofWindows95or98withoutwebbrowsing.
(1)MicrosofteasilycouldhavesuppliedWindows95withoutwebbrowsing151.
1.
First,notechnicalreasoncanexplainMicrosoft'srefusaltolicenseWindows95withoutInternetExplorer1or2.
151.
1.
1.
TheversionofInternetExplorer(1.
0)thatMicrosoftincludedwiththe"pluspack"andtheoriginalOEMversionofWindows95wasaseparate,executableprogramfilesuppliedonaseparatedisk.
WebbrowsingthuscouldbeinstalledorremovedwithoutaffectingtherestofWindows95'sfunctionalityinanyway.
ThesamewastrueofInternetExplorer2.
0.
i.
ProfessorFeltentestified,withrespecttoWindows95,thathehas"determinedthatremovingIE1fromthisversionofWindowsiseasilyaccomplishedbyremovingtheIE1programfile(sometimescalledan'executable')andremovinganyiconsontheWindowsdesktopandWindowsStartmenuitemsthatrefertoIE1.
Afterdoingthis,ausercannotbrowsetheWebwithoutaddingmore281softwaretothesystem,butthefunctionalityoftheoperatingsystemisunaffected.
"FeltenDir.
21,22(sameforIE2).
ii.
InacommunicationdirectedtoOEMsonJuly3,1995,Microsoftindicatedthatithad"decided"toincludeInternetExplorer(amongotherthings)intheOEMreleaseofWindows95.
Microsoftacknowledgedthatitwouldhavebeen"possiblefortheOEMtointegratethesetoolsintotheirmanufacturingprocessthemselves,"butMicrosoftsaidthatitwaspre-installingExplorerto"saveeachOEMthetimeandeffort"thatwouldrequire.
GX36.
iii.
GlennWeadocktestified:"Theoperatingsystemdoesn'tneedabrowsertowork,asMicrosoftshowed,whenitreleasedtheoriginalretailversionofWindows95,which,aswediscussedearlier,doesnotcontainabrowser.
"Weadock,11/16/99pm,at92:16-22.
151.
1.
2.
Microsoft,moreover,createdaneasywaytoremoveInternetExplorer1.
0and2.
0fromWindows95aftertheyhadbeeninstalled,viathe"Add/Remove"featureintheWindows95"StartMenu.
"This,too,demonstratestheabsenceofanytechnicalreasonforMicrosoft'srefusaltosupplyWindows95withwebbrowsing.
i.
ProfessorFishertestifiedthat"MicrosofthasarguedthatitmustforceOEMstotakeIEbecausetheabsenceofIEmayunderminethequalityoftheoperatingsystem,tothedetrimentofusers.
However,severalfactscontradictthissuggestion.
Forexample,MicrosoftprovidedwaystoremoveIEinWindows95--afunctionthatwouldmostlikelynothavebeenprovidedifitledtoadecreaseinthequalityoftheoperatingsystem.
"FisherDir.
159.
151.
2.
Second,thereisnotechnicalreasonforMicrosoft'srefusaltolicenseWindows95toOEMswithoutwebbrowsing,eitherbyprovidingaversionofWindows95withInternetExplorer3or4uninstalledorbypermittingOEMstouninstallInternetExlorer3or4.
151.
2.
1.
Microsoft'sdecisiontoprovidean"uninstall"procedureforInternetExplorer3and4toendusers,andtopromoteInternetExploreronthebasisofthat282feature,showsthattherewasnotechnicalorquality-relatedreasonforrefusingtopermitOEMstousetheprocedure.
MicrosoftwouldnothavepermittedenduserstouninstallInternetExplorer,andconsumerswouldnothavedemandedsuchanoption,ifthatprocessfragmentedordegradedtheotherfunctionalityoftheoperatingsystem.
i.
ProfessorFishertestified:"MicrosoftprovidedwaystoremoveIEinWindows95—afunctionthatwouldmostlikelynothavebeenprovidedifitledtoadecreaseinthequalityoftheoperatingsystem.
"FisherDir.
159.
ii.
CelesteDunnofCompaqtestifiedthatwhenCompaqwasplanningtoremovetheInternetExplorerandMSNiconsfromthedesktop,MicrosofttestedCompaq'sWindowsconfigurationandhadnotdetectedanytechnicalproblems.
DunnDep.
,10/23/98,at187:12-25(DX2566).
151.
2.
2.
Microsoft'sagreementinJanuary1998toprovideOEMsanuninstalloptionalsodemonstratesthattherewasneveranybonafidetechnicaljustificationforMicrosoft'srefusaltolicenseWindows95withInternetExplorer"uninstalled.
"i.
JonKiestestifiedthatPackardBell/NECtookadvantageoftheJanuary1998stipulatedremedytooffersomeofitsPCmodelswithoutInternetExplorerKiesDep.
(played12/16/99am),at6:11-19.
ii.
ProfessorFishertestifiedthat"OEMswouldnotnegotiatetoremoveIEiftheoperatingsystemwouldbeadverselyaffected,sinceapoorlyoperatingcomputerwouldreflectpoorlyontheOEMandwouldbelikelytoincreasethenumberofcustomersupportcalls;also,largecustomerswouldnotrequestanoperatingsystemwithIEremovediftheyfeltthissystemwouldbeadverselyaffected.
"FisherDir.
163.
283(2)MicrosofteasilycouldhavesuppliedWindows98withoutwebbrowsingandenabledOEMsandusersto"uninstall"thebrowser152.
AswithWindows95,thereisnotechnicaljustificationforMicrosoft'srefusaltomeetdemandforabrowserlessversionofWindows98.
153.
AsProfessorFeltendemonstrated,MicrosoftcouldeasilysupplyaversionofWindows98,withouttheabilitytobrowsetheweb,towhichuserscouldaddthebrowseroftheirchoice.
Infact,ProfessorFelten'sprototyperemovalprogram,althoughonlyaconceptprogramdesignedinarelativelyshortperiodoftimeandwithoutthebenefitofMicrosoft'sinternalexpertise,producespreciselythatresultwhenrunonacomputerwithWindows98installed.
i.
ProfessorFeltentestifiedthathis"analysisdemonstratesthatitispossibleforMicrosofttodivideWindows98intotwoprograms,onethatreplicatesthefunctionofthecurrentversionofWindows98exceptthatWebbrowsingisremoved,andanotherthataddsIE4Webbrowsingtothefirstprogram,suchthatanOEMoruserwhoinstalledthetwoprogramsinsequencewouldendupwithsoftwarefunctionallyidenticaltotoday'sversionofWindows98.
Microsoft,withitsintimateknowledgeofitsownproducts,wouldhavelittledifficultyperformingthistask.
"FeltenDir.
66.
ii.
ProfessorFeltenalsotestifiedthathis"prototyperemovalprogramremovesInternetExplorer.
ItremovestheabilitytobrowsetheWeb,anditpreparesthemachinetoaccepttheinstallationofanotherwebbrowser.
So,ifyou'reinthatstatewhereIEWebbrowsinghasbeenremovedandnothinghasbeenputinitsplace,thenalloftheWeb-browsingfunctions,featuresarenotthere;and,inparticular,theabilitytodisplayaWebpageinsideanembeddedsubwindowisgoneFelten,12/14/98pm,at46:14-48:2.
iii.
ProfessorFeltentestifiedthathis"programsdemonstratethatMicrosoftcandeliveraversionofWindows98fromwhichtheIEwebbrowserhasbeenremoved,andtheycandeliverthatinawaywhichdoesnotaffectthenonweb-browsingfunctionalityofWindows98.
.
.
.
MicrosoftcanthenproduceanIEinstallationprogramwhichputsthesystemback,ineffect,towhatitisintoday'sWindows98.
"Felten,6/10/99am,at9:4-12.
154.
ProfessorFelten'sprogramdoesnotdegradetheperformanceorstabilityof284Windows98inanyway.
154.
1.
ProfessorFeltentestifiedrepeatedlyandcrediblythathehadbeenusingaWindows98computer,onwhichhisprogramhadbeenrun,formorethansevenmonthswithnodiscerniblelossinperformanceorstability.
i.
ProfessorFeltentestifiedthat"IshouldtellyouthatforsevenandahalfmonthsnowIhavebeenusingaPCfromwhichInternetExplorerhasbeenremovedandNetscapesubstituted--that'ssincethe23ofApril--rdonmyprimarydesktopcomputeratwork.
AndsinceI'macomputerscientist,Iusethatmachineprettyintensely.
Ihaveseenoproblemsinthattime.
MyprimarydesktopcomputerathomeIhavebeenusingWindows98inthesameconfigurationwithWebbrowsingremovedandNetscapeinplacesincethemidleofAugust.
Mytestimonyinthiscasewaswrittenonthatmachine,andIhaveneverseenaproblem--otherthantheWindowsUpdateissuewhichIdescribedtoyoubefore,yourhonor.
"Felten,12/14/98pm,at42:13-43:2;Felten,12/14/98pm,at43:15-20(same);Felten,12/14/98pm,at52:1-17(same).
154.
2.
ProfessorFeltenalsotestifiedthatheranseveralperformancetestingprogramsprovidedbyMicrosoftanddiscoveredthatremovingInternetExplorerfromWindows98viatheprototyperemovalprogramactuallyyieldedamodestperformancegain.
i.
ProfessorFeltentestifiedthat:"MicrosoftturnedovertousasetoftenperformancemeasurementprogramsthattheyuseformeasuringperformanceofvariousMicrosoftsoftware,inparticularmeasuringperformancerelatedtowhatMr.
AllchincallsthecoreIEDLLs.
"Felten,6/10/99pm,at13:17-22.
ii.
ProfessorFeltentestifiedthat,"intheseperformancetests,whatwefoundwasonthewhole,removingtheInternetExplorerbrowserfromWindowsmakesWindowsalittlefaster.
"Felten,6/10/99pm,at14:17-19.
iii.
ProfessorFeltentestifiedthat"thereweretentests,andononeoftheteststherewasnostatisticallysignificantdifferencebetweenthetwosystems.
OnsixoftheteststherewasaperformanceimprovementduetoremovingInternetExplorer--theInternetExplorerbrowser.
AndonthreeoftheteststherewasaslightperformanceslowdownduetoremovingtheIEwebbrowser.
AndIwanttopointoutthethreeslowdownsareconsiderably285smallerthanthesixperformanceimprovementsontheothertest.
So,onthewhole,whatweseeisaslightperformanceimprovementduetoremovingIE.
"Felten,6/10/99pm,at15:2-13.
iv.
ProfessorFeltentestifiedthatWindows98useslessdynamicmemory(RAM)aftertheprototyperemovalhasbeenrun,whichhasapositiveeffectonsystemperformance.
ProfessorFeltentestifiedthat"withthebrowser,theamountofmemoryallocatedafterbootwas35.
6megabytes.
Andintheotherscenario,withtheIEwebbrowserremoved,theamountofallocatedmemorywas29.
8megabytes.
That'sadifferenceofaboutsixmegabytes,orabout20percent,inthememoryuseofWindows.
"Felten,6/10/99pm,at20:16-21.
154.
3.
MostoftheperformanceproblemsthatMicrosoftallegesaboutWindows98afterProfessorFelten'sprogramhadbeenrunweremerelyacknowledgmentsthatProfessorFeltenhad,infact,successfullyremovedwebbrowsingfromthesystem.
Forexample,MicrosoftarguesthatProfessorFelten'sprogramremovestheuser'sabilitytotypeinawebpagefromthe"Start"menuortoplacecontentfromawebpageonthe"ActiveDesktop.
"Felten,12/14/98pm,at29:1-8;Felten,12/14/98pm,at30:19-31:7.
SuchobservationsdemonstratemerelythatProfessorFelten'sprogramdoeswhatitwasintendedtodo.
154.
4.
MicrosoftattemptedtodemonstratethatProfessorFelten'sprogramdegradesthegeneralperformanceofWindows98inwaysunrelatedtowebbrowsing,butthevideodemonstrationthatMicrosoftofferedasevidencedidnotprovewhatitpurportedtoprove.
154.
4.
1.
Onthevideotape,MicrosoftemployeeYusufMehdiledwhatappearedtobeaguideddemonstrationofaWindows98machineconnectingtoMicrosoft'sWindowsUpdatewebsite.
DX2161.
MehdisaidthatMicrosofthad"notmadeanyotherchangestothiscomputerorWindows98excepttorunDr.
Felten'sprogramashedescribesinhisexpertreportandhiswrittendirecttestimony.
"DX2161(played2/1/99pm),at5:13-20.
Healso286saidthatthecomputerwastakinganunusuallylongtimetocompletethatoperationbecauseof"performancedegradationthathasoccurredbecauseofrunningtheFeltenprogram.
"i.
Mehdistatedthat"Asyoucansee,atthebottomofthepagehere,we'reactuallyconnectingouttotheInternetandfetchingthatdata.
It'stakingaverylongtime,however--unusuallylong--toaccessthatwebsite.
That'saresultoftheperformancedegradationthathasoccurredbecauseofrunningtheFeltenprogram.
"DX2161(played2/1/99pm),at7:12-18.
ii.
Mehdistatedthat"Dr.
FeltenchosetoletcustomersaccessthisonewebsitewhichisdoneusingtheIEcodeinWindows98includingMSHTML,URLMON,andWININETamongotherfiles.
However,Dr.
Felten'schangesmakeaccessveryslow.
"DX2161(played2/1/99pm),at7:21-25.
iii.
Mehdistatedthat"asIhavealreadydemonstratedinshowinghowslowlytheWindowsUpdatesiteloaded,theperformanceofthegovernmentversionofWindows98ismuchslower.
"DX2161(played2/1/99pm),at15:17-20.
154.
4.
2.
Infact,however,almostnothingaboutthepurporteddemonstrationwasaccurateandtruthful.
154.
4.
2.
1.
Inthefirstplace,Microsoft'ssponsoringwitnessforthevideotape,JamesAllchin,acknowledgedthattherewereseriousdiscrepanciesintheappearanceofcertaintitlebarscreensonthe"demonstrationPC"inthevideo.
Asaresult,itinitiallyappearedtohimthat,contrarytotheclaimmadeinthevideo,ProfessorFelten'sprogramhadnotevenbeenrunonthatmachinethoughhelaterproducedadifferentexplanation.
i.
CompareGX1688(screenshotfromunmodifiedWindows98machineattemptingtoaccessWindowsUpdate,showing""MicrosoftWindowsUpdate-MicrosoftInternetExplorer"attop)withGX1689(screenshotfromamachineonwhichProfessorFelten'sprogramhadbeenrun,showing"MicrosoftWindowsUpdate-Windows98"attop),andGX1692(screenshotfromDX2161,showing287"MicrosoftWindowsUpdate"attop).
ii.
Allchininitiallystatedoncross-examinationthatitappearedthatProfessorFelten'sprogramhadapparentlynotbeenrunonthedemonstrationmachineatall.
Allchin,2/2/98am,at27:8-18(testifyingthat"fromwhatI'mseeinghererightnow,Ibelievethatthatwasdoneonapre-Feltensystem,althoughthepointstillstands.
HehasperformanceproblemsandtheWindowsUpdatedoesn'twork,butIbelieve,fromwhatI'mseeinghere,theyfilmedthewrongsystem.
");Allchin,2/2/98am,at28:23-24("Inthisparticularcase,.
.
.
IdidnotthinktheFeltenprogramhadbeenrun.
").
154.
4.
2.
2.
Inaddition,asMr.
Allchinconcededoncross-examination,Microsoft'srepresentationthatithad"notmadeanyotherchangestothiscomputerorWindows98excepttorunDr.
Felten'sprogramashedescribesinhisexpertreportandhiswrittendirecttestimony,"wasfalse(DX2161(played2/1/99pm),at5:13-20).
Tothecontrary,thevideotapedemonstrationwasapparentlycompiledbysplicingtogetherfootagefromseveraldifferentmachines,someofwhichhadbothextensiveadditionalsoftwareinstalledandseveralunexplainedmanualchangestotheWindowsRegistry.
i.
Allchintestifiedthat"IbelievesomeofthosemachineshadOfficeonit,forexample,andsomeofthemhadsomeoftheotherbrowsersthatweredone.
Thoseweren'tallthesamemachine,andtheyalldidn'thaveexactlythesamethingonit.
"Allchin,2/2/99am,at29:24-30:5.
ii.
Whenaskedwhether"someofthemachines--atleastsomeofthetimesomebodyhadmanuallychangedtheregistry,"Allchinanswered:"Yes.
Thereisapartofthefilmthatshowsthattheyhadapparentlyrerunthetestacoupleoftimesfilming,andtheyhadadded--it'sveryeasytoaddemptyentriestotheregistry.
"Allchin,2/2/99am,at36:5-23.
iii.
Allchinconcededthattheregistrychangesshownonthe288tapewouldnotbethereifyouinstalledFelten'sprogramonavirginmachineanddidnothingelse.
AllchinDep.
(played2/2/98am),at40:16-21.
iv.
Allchinconcededthatthestatementonthetape,thatnothinghadbeendonetothemachinebutProfessorFelten'sprogram,wasuntrue,because"theyhadbeenthrougharehearsal.
"Allchin,2/3/99pm,at57:5-19.
v.
Allchinconcededthateventhoughthevideotapenarrationclaimsthat,otherthanrunningProfessorFelten'sprogram,"wehavenotmadeanyotherchangestothiscomputer,"infactthenumberoficonsvisibleonthedesktopchangesseveraltimesduringthevideo,clearlydemonstratingthatchangeshadbeenmadeorthatmorethanonePCmusthavebeenusedfortheso-called"demonstration.
"Allchin,2/3/99pm,at64:3-19.
154.
4.
2.
3.
Allchinalsoconcededoncross-examinationthatitwouldnotinanyeventbetechnicallypossibletomeasurethekindsofallegedperformancedegradationunderthecircumstancespurportedlydepictedonthevideo.
Theentirepremiseofthedemonstrationwas,therefore,inaccurateandmisleading.
i.
Allchin,2/2/99am,at21:17-22("Thetestthatweknowshowsperformancehastobedoneinacontrolledcircumstance.
Youcannotprovetheperformanceslowdownwhenyou'reconnectedtotheInternet.
Youcanonlyproveitinacontrolledsituation,whichishowwetesttheperformancedegradation.
").
c.
ThereisnotechnicalreasonforMicrosoftnottomeetdemandforWindows95orWindows98withoutwebbrowsingbyofferingfurtherseparationbetweenthebrowserandtheoperatingsystem155.
BeyonditsplainabilitytoenableOEMsandusersto"uninstall"InternetExplorer,thereisnotechnicalreasonforMicrosoft'srefusaltoofferOEMsanduserstheoptionoffurtherseparationbetweenthebrowserandtheoperatingsystem.
289(1)MicrosofteasilycouldsupplyversionsofWindows95andWindows98withouttheroutinesthatprovidewebbrowsingandstillofferusersthesameallegedbenefitsofits"integrated"featuresanddesign156.
AlthoughMicrosoftcontendsthatremovingtheroutinesthatsupplyonlywebbrowsingfromWindows95orWindows98willdepriveconsumersofthebenefitsofits"integrated"designandfeatures,thiscontentionisdeeplyflawed.
First,such"integration"couldneversupplyanymeaningfulbenefitstoconsumerswhodonotwishtobrowsethewebusingInternetExplorer.
Second,supplyinganunbundledversionofWindows98tothoseconsumerswouldnotpreventMicrosoftfromofferingan"integrated"versiontothoseconsumersthatdesiredit.
Becauseofthemalleablenatureofsoftware,the"integration"necessarytoproduceanysuchbenefitscouldbeachievedjustaseffectivelybyOEMsorendusersinstallingaseparatelydistributedproduct.
WhetherMicrosoftchoosestocallthatproducta"browser"oran"operatingsystemupgrade"is,frombothatechnicalandaneconomicperspective,immaterial.
(a)Bundlingthebrowserwiththeoperatingsystemisinefficientforusersthatdonotwantthebrowser157.
Bundlingbrowsing-onlyroutinesintolargesystemDLLsisinefficientforuserswhodonotwantweb-browsingfunctionality.
157.
1.
Microsofthasnevercontended(andcouldnotplausiblycontend)thatthepresenceofbrowsing-onlyroutinesinitslargeDLLsimprovessystemperformanceevenifthoseroutinesareneverinvokedbyanycodepathonthesystem.
Routinesthatarenotexecutedaresimplydeadweightanddegradesystemperformance.
i.
ProfessorFeltentestifiedthat:"AnycodeinaDLLthatsupportsonlyonefunctionoftheDLLmayberemovedwithoutendangeringotherfunctions290oftheDLL.
Forexample,codethatsupportsonlyIEWebbrowsingfunctionsmayberemovedwithoutendangeringanynonWebbrowsingfunctionsofWindows98.
"FeltenDir.
62.
ii.
SeeinfraPartV.
B.
4.
c.
(1);170.
157.
2.
ItcanthusbeefficienttoplaceroutinesthatareusedonlyforwebbrowsingintolargesystemDLLsonlyifthesystemisdesignedtodeliverwebbrowsingfunctionality.
Anditis,bythesametoken,notinefficientforMicrosofttodisaggregatebrowsing-onlyroutinesfromfileslikeSHDOCVW.
DLLintheversionsofWindows98thatitdeliverswithoutweb-browsingfunctionality.
i.
ProfessorFeltentestifiedthatMicrosoftsplitcertainDLLsfromInternetExplorer4toInternetExplorer5,whichshows"ofcourse,thattheseDLLfilesarenotindivisibleandtheyarenotfixed.
Andsoargumentsthatsaythat`A'and`B'areinthesameDLL,and,therefore,wecannotseparatethem,arenotcorrect.
"Felten,6/10/99am,at51:23-52:2.
iii.
HadiPartovitestifiedthatMicrosofthasmovedfunctionsinoneDLLintodifferentDLLsinsucceedingversionsoftheproduct.
PartoviDep.
,1/13/99,at659:7-23.
iv.
ProfessorFeltentestifiedthatSHDOCVW.
DLL"isagreatexampleofthepointI'mtryingtomakeaboutpackagingoffunctionsintofiles.
ThisSHDOCVWfileisreallyabundleofseparatefunctions.
ItcontainssomefunctionshavingtodowithdisplayingtheStartmenu.
ItcontainssomefunctionsthathavetodospecificallywithWebbrowsing,anditcontainssomegeneraluserinterfacefunctionsaswell.
Andtotalkaboutthisfileasdoingonethingorbeingpartofoneproductisreallyincorrect.
"Felten,12/14/98am,at60:18-61:2.
157.
3.
BundlingroutinesintolargesystemDLLsinfactcreatessubstantialinefficienciesforuserswhodonotwishtousethefunctionalitythatthoseroutinesdeliver.
157.
3.
1.
Installingsoftwareonasystemthattheenduserdoesnotdesireandwillnotusedegradesperformancebyunnecessarilyconsumingsystemresources,increasing291thelikelihoodofsoftwareconflicts,andincreasingthecomplexityoftheuserinterface.
Thoseproblemsareexacerbatedwhentheunwantedsoftwareisintegratedintotheoperatingsystembecauseoperatingsystemcodeisoftenloadedintothe"workingset"indynamicmemory,whereasunusedapplicationstypicallysitdormantontheharddrive.
i.
SeeinfraPartV.
B.
4.
c.
(1);164.
1-2.
157.
3.
2.
Microsoftunderstoodthatitsdecisionto"integrate"InternetExplorerintoWindows98wouldinfactsubstantiallydegradetheperformanceofWindows98forthoseuserswhodesiredtobrowsethewebwithNetscapeNavigator,ornotatall.
iSeesupraPartV.
B.
2.
3;145-47.
157.
3.
3.
AsMicrosoftrecognizes,bundlingnewfunctionalityintotheoperatingsystemcanalsomaketestingdifficultandcanslowtherateofinnovation.
i.
InAugust1996,HankVigilsentPaulMaritzane-mailentitled"GravityorAnti-Gravity"andobserved"OncesomethinghasbeenpulledintotheOS,therequirementsofquality,breadthofcompatibilityandscalemeanthatlotsofdependenciesandtrade-offshappen.
Thenetresultisthatthemonolithiccodebaseshipsonlongcyclesafterlotsoftesting.
Thereisalsoatendencytomeetallneeds:beeverythingtoeveryconsumer.
DespitetheadvantagesofintegratingmoreandmorefunctionalityintotheOS,thereseemtobeareasthatcan/wouldbenefitbybreakingoutoftheOSsothattheycandevelopricherfunctionalityfaster.
Thisallowsforgroupstodiscover,re-defineandexploitcustomerneedsinwaysthatarehardwhenteamsbelievethatOSgravityisthecentrallaw.
"GX157,atMS980167387.
ii.
BradSilverberg,commentingonthee-mail,agreedthat"Thisisaverygoodandimportantpoint.
Tome,theoptimalstrategyissomethinginbetween:keycomponentsevolveandimproveandgetdeliveredindependentlyoftheOSreleasecycles,andthensynchupwhenthereisanOSrelease,providingadditionalintegration.
ClearlytheneedsformanycomponentsrequirethattheyreleaseinmuchfastercyclesthantheOSitselfcan.
Themost292obviousexampleisthebrowser.
Yes,itwillbeintegratedintotheos,andie4integratesdeeplyenoughthatittakesovertheos'sUI;butitisonamuchfasterreleaseschedule.
WewouldbedeadifwehadtosynchwithOS's.
"GX157,atMS980167387.
iii.
Maritztestifiedthat:"Thereisacosttointegratingthingsintoyouroperatingsystem.
Itmeansmoreworktobedone,morethingstobetested,moresoftwaretobewritten.
"Maritz,1/27/99pm,47:6-12.
iv.
JonathanRobertswrotetoJamesAllchin,MosheDunie,andCarlStorkinMarch1997todiscussoptionsregardingtheproposedbundlingofIE4andWindows98.
Oneofthoseoptionswasto"DecoupleMemphisandIEandshipMemphisinJuly/AugustandconnectwithIEintheOEMchannelwhenitships.
"Storkrespondedthat"CurrentlyIE4issoimmature(andbig&slow&compat-bugprone)thatitisimpedingourselfhostingprocess.
WefindtonsofbugsbutsomanyareinIEcomponentsthatourtest&reproeffortsarebecomingmeaninglessontheOS.
Wearealsofindingmoreandmoreresistanceontheteamtoinstallthebuildsbecausethingsdon'twork.
IamatthestagewhereIdonotrecommendthatwereleaseanythingwithIE4integratedunderthenameofaMemphisbeta.
Customerswouldexperiencetoomanyproblemsandtheperformancewouldbeunacceptableaswell-itwouldbesobadastoblemishthereputationofMicrosoftandofWindows.
.
.
.
Moreimportantly,atthispointitisgettinginthewayofvaliddevelopmenttesting&reproworkforMemphis.
"GX355.
157.
3.
4.
AndevenMicrosoft'sownengineershaveexpressedskepticismaboutMicrosoft'sdecisiontobundlemoreandmoreunrelatedfeaturesintotheInternetExplorerDLLs.
i.
InanAugust1997e-mail,ChristianFortiniwrote:"Wehavetostopaddingnon-browsingfeaturesintoTridentandstarttakingsomeoftheexistingonesout.
WeshouldshrinkthecoreTridentcodebasedowntoaverycompact(andfast)HTMLrenderingandmanipulationengineandhopefullylimitthenumberofpeopleinthiscodebase.
"GX1377,atMS7004591.
"Trident"isMicrosoft'scodenameforthefileMSHTML.
DLL.
Felten,6/10/99am,at46:23-24.
293ii.
CommentingonGX1377,ProfessorFeltentestifiedthatFortini"appearstothinkthattherearefeaturesintherethatarenotrelatedtobrowsing,andhe'sadvocatingtakingthemout.
.
.
.
Andheseemstosaythat,ifthatisdone,thatwillcausetheHTMLrenderingenginetobemore--tobefasterandmorecompact.
Inotherwords,heseemstothinkthatit'sdesirablefortechnicalreasons.
"Felten,6/10/99am,at47:4-12.
(b)TyingthebrowsertotheoperatingsystemisnotnecessarytoachievethebenefitssoughtbyuserswhowantboththeoperatingsystemandtheInternetExplorerbrowser158.
MicrosoftisentirelyfreetoofferabundledversionoftheoperatingsystemandthebrowsertoOEMsandusersthatwantit;itdoesnotneedtorequireOEMsanduserstotakethatversioninordertoofferittothosethatwantit.
i.
SeeinfraPartV.
B.
3.
d.
(3);165.
2.
159.
Moreover,evenifMicrosoftwereunabletoofferabundledversion,andevenifitweremostefficientforwebbrowsingroutinestobeplacedinlargeDLLs,operatingsystemfunctionalityandwebbrowsingfunctionalitycanstillefficientlybesoldordistributedseparately.
Microsoftcoulddeliverwebbrowsingfunctionalityseparatelytothosethatdesireit,intheformofupdatedDLLs.
159.
1.
Aspreviouslyexplained,themalleablenatureofsoftwarehastwoimportantimplications.
159.
1.
1.
First,exceptattheextremes,softwareroutinesneednotresideinthesamefiletofunctiontogetherinaperfectlyseamlessor"integrated"fashion.
Theorganizationofroutinesintofiles(includingDLLs)isthuslargelyamatterofdesigndiscretion,asopposedtoengineeringnecessity.
294i.
SeesupraPartV.
B.
2.
d.
(2)(a);131.
159.
1.
2.
Second,evenifplacementofcertainroutinesinthesamefileshasengineeringbenefits,itisnotnecessaryforthoseroutinestobeshippedtogethertoachievethatbenefit.
Userscanbesuppliedwithfilescontainingsomeoftheroutinesand,shouldtheyalsodesiretheothers,canobtainadifferentfilecontainingtheadditional,relatedroutines.
i.
SeesupraPartV.
B.
2.
d.
(2)(a);126.
4.
159.
2.
Therefore,thereisnotechnicalreasonwhyMicrosoftcouldnotshipevenfully"integrated"webbrowsingfunctionalityasaseparateproductthatcouldbeinstalledonWindows98.
i.
JamesGoslingtestifiedthat"regardlessofwhetheraparticularfileisinstalledonacomputerwiththeoriginaloperatingsystem,orseparatelybyacomputermanufacturer,orbyanenduserinstallingaprogram,thecomputerwilloperateinthesamemanner.
"GoslingDir.
42ii.
ProfessorFarbertestifiedthat:"MicrosoftclaimsinitsmemorandafiledwiththisCourtthatcertain'efficiencies'resultfromits'integration'ofsomeofthefiles(orDLLs)thatareincludedinitsInternetExplorer(IE)productaspartofWindows98.
.
.
.
Theclaimsthatefficienciesexistfromthiscombinationoffunctionsaremisleading.
Whilethecombinationmayoffercertainefficiencies,thesesameefficienciescanbeachievedwithoutbundlingoftheWebbrowsersoftwarewithwhatMicrosoftcallsitsWindowsoperatingsystem.
ThisisbecausetherearenotechnicalbarriersthatpreventMicrosoftfromdevelopingandsellingitsWindowsoperatingsystemasastandaloneproductseparatefromitsbrowsersoftware.
.
.
.
Windows98(likeallothersoftware)necessarilyconsistsofmoduleswhicharemalleableandseparable.
TherearenotechnicalefficienciesforusersachievedbycombiningMicrosoft'sbrowsersoftwarewiththeremainderofthesoftwaresoldasWindows98thatcouldnotbeachievedbywritingtwoprogramsinamannerthatlatercouldbeloadedand'integrated'eitherbytheretailenduser(i.
e.
,justasendusersinstallanyotherapplicationthatrunsonWindows)orbyanOEM.
"FarberDir.
24.
iii.
ProfessorFeltentestifiedthat"thenatureofsoftwareissuchthatitiseasytoaggregateunrelatedfunctionsintothesamefile,orto'integrate'295separateproductsintoasingleproduct.
Themerefactthattwofunctionsareimplementedinthesamefile,orthattwoproductsare'integrated'intoasingleproduct,doesnotimplythattheymustbeimplementedinthisfashion;becauseofthenatureofsoftware,functionscanbeseparatedintodistinctfiles,or'integrated'productscanbeseparatedintodistinctproductswithoutanylossofcapability.
"FeltenDir.
31.
159.
3.
MicrosoftconcedesthattheversionofInternetExplorerseparatelydistributedovertheInternetaccomplishesits"integration"inpreciselythatway.
i.
Seeinfra159.
4.
ii.
CarlStorktestifiedthatMicrosoftdistributedInternetExplorer3separatelyfromtheWindows95because"InternetExplorer3representedsignificantcustomerimprovementsoverpreviousgenerationsofInternetExplorer.
Andwewantedtoprovidethattoasmanyofourcustomersaswecould.
Wehaveinthepastreleasedadvancestocomponentsthatarepartoftheoperatingsystemseparatelyfromtheoperatingsystemaswell.
AnotherexampletothatwouldbeDirectX,whichhasfrequentlybothbeenmadeavailableontheWebaswellastobeshippedwithapplications.
AndthereareothersaswellwhereIcouldcitethesamething.
"StorkDep.
,8/11/98,at40:19-41:7(DX2594).
159.
4.
AsMicrosoft'sJimAllchinconceded,allofthebenefitsofferedbythe"integration"ofInternetExplorerwithWindows98canalreadybeachievedbyanenduserwhoinstallsthemostrecent,separatelydownloadedversionofInternetExplorerontoaversionofWindowswithoutInternetExplorer.
159.
4.
1.
SeparatedeliveryofInternetExplorer4andtheoriginalbrowerlessretailreleaseofWindows95providesnearlyalltheweb-relatedfeaturesofWindows98;asMr.
Allchinconcededwhenaskedabout19separatefeaturesofWindows98,Microsoft'sdecisiontoincludetheroutinesthatsupplythosefeaturesinWindows,ratherthaninaseparatebrowserproduct,issimplyachoiceabout"distribution.
"i.
Whenaskedwhetherausercouldachievethe"integrationof296Internettechnologies"accomplishedbyWindows98by"combiningaretailversionofWindows95andaretailversionofInternetExplorer4,bothpurchasedseparately,"Allchinanswered:"Yes.
IEisreplacingcoreWindowsfiles,anditbecomesamodifiedWindowssystemthathasthisintegrationinit.
"Allchin,2/1/99pm,at37:15-25.
ii.
WhenaskedwhetherWindows98wastherefore"justadistributionvehicle"forthetechnologiesthatMicrosoftalsodistributedasWindows95andInternetExplorer4,Allchinanswered:"It'sthesamecodeoutofWindows.
"CounselfortheUnitedStatesthenasked:"It'sthesamecode,andallwe'retalkingaboutaredifferentdistributionvehicles,inyourwords;correct,sir"Allchinanswered:"Yes,that'swhatIsaid,yes.
"Allchin,2/1/99pm,at39:18-25.
iii.
Whenagainaskedwhether"auserwhohadpurchasedWindows95atretailandwhoaddedIE4purchasedatretailwouldhaveexactlythesameexperience,"Allchinagainanswered:"Yes,forexactlythesamereason,i.
e.
,heisreplacingcoresystemfiles,nomatterhowyougotit.
"Allchin,2/1/99pm,at41:9-14.
iv.
Allchinagreed"thatyoucangetthosebenefitseitherbybuyingWindows98orbyhavingpurchasedanoriginalretailversionofWindows95towhichyouaddedIE4eitherdownloadedorboughtfromretailorgotteninsomeotherway.
"Allchin,2/1/99pm,at45:9-25.
v.
CarlStorktestifiedthattheInternetExplorer4teamdevelopedits"setoftechnologies"forseveraldifferent"shipvehicles,"oneofwhichwas"aretailupgradeforWindows95,"andanotherofwhichwasinclusioninMemphis.
StorkDep.
,1/13/99,at772:1-6.
vi.
InaFebruary1997summaryoftheresultsofInternetExplorer4andWindows98focusgroups,ChristianWildfeuerdiscussedthereactiontothenew"WebView"userinterfaceavailablewithbothproducts:"Interestingly,theyattributedthesenewfeaturestoWindowsandnottoInternetExplorer,andthisdespitethefactthatwerepeatedlyhammeredhomethemessagethattheywouldgetallthatinIE4forfree,iftheydownloadeditofftheWeb.
"GX202(emphasisadded).
159.
4.
2.
Theremainingfeaturescanbeobtainedbycombininga297separately-obtainedInternetExplorer5andaversionofWindows95onwhichInternetExplorer4hasbeeninstalled.
i.
ProfessorFeltentestifiedthatAllchin"mentionedthreefeatures:HTMLHelp,UpdateWindows,andWebTVforWindows"thatwereavailableinWindows98butnottoaWindows95userwithInternetExplorer4.
Felten,6/10/99am,at18:18-19.
ProfessorFeltenfurthertestifiedthattheHTMLHelpandWindowsUpdatefunctionalityaredeliveredbytheversionofInternetExplorer5thatMicrosoftiscurrentlymakingavailableseparatefromWindows98.
Felten,6/10/99am,at19:10-16.
ii.
ProfessorFeltentestifiedthattheseparatelydownloadableversionofInternetExplorer5doesnotincludetheWebTVfunctionality"butthatdoesnotmeanthatitcouldnot.
Infact,ifyoulookatWindows98,you'llseethatWebTVforWindowsisanoptionalfeature,whichmeanstheuserhastheoptiontoinstallitornot.
Andiftheuserhasinstalledit,theusercantakeitawayatanytime.
"Felten,6/10/99am,at19:20-20:2.
159.
5.
Microsoft'scontentionthatausercannotgetthesamebenefitsfromcombiningNetscapewithWindowsisbesidethepoint;theimportantpointisthatMicrosoftdoesnothavetobundleWindowsandInternetExplorerinorderforthoseuserswhowantbothtogetthebenefitsofboth.
i.
ProfessorFeltentestifiedthatAllchin'sassertion--thatinstallingNavigatorontopoftheoriginalretailversionofWindows95resultsinlosing19or20differentfeaturesavailableontheintegratedWindows98--is"notreallyrelated"totheissueofwhetherInternetExplorerhastobeincludedwithWindows.
Feltencontinued:"IfyouwanttounderstandtherelationshipbetweenWindows98andInternetExplorer,youcan'tdoitbylookingattherelationshipbetweentwodifferentproducts,Windows95andNetscapeNavigator.
SoIdon'tseetherelevanceofthattoanyargumentthatIEhastobedeliveredwithWindows98.
"Felten,6/10/99am,at16:13-23.
ii.
Instead,ProfessorFeltentestifiedthat"therelevantcomparisoniswhathappenswhenyoucombinetheoriginalretailversionof298Windows95--that'stheonethatcamewithoutanybrowser--whathappenswhenyoucombinethatwithIE4distributedseparately,orperhapsIE5distributedseparately.
"Felten,6/10/99,at17:2-6.
159.
6.
Industryparticipants,includingMicrosoft,routinelydescribesoftwareproductsasseamlessly"integrated"evenwhentheyarenotshippedtogetherorevenproducedbythesamecompany.
159.
6.
1.
Microsoft,forexample,describesOfficeas"integrated"withtheoperatingsystemandeachofitsseparatecomponents,eventhoughthefunctionalitysuppliedtotheenduserisidenticalwhetherthecomponentsarepurchasedtogetherorseparately.
i.
RobertMugliatestifiedthatMicrosoftOfficeis"anintegratedpackage"includingdistinctapplicationsknownasWordandExcel,whichwere"designedtobeintegrated"togetherintoOffice,butthatMicrosoftnonethelessdistributesWordandExcelseparately.
"ThewayImightsaythatisthatOfficeisanintegratedpackageoverall.
Itwasdesignedtobeintegrated.
Weproduced,becauseourcustomerswouldlikeustoproduceit,aseparateword-processingprogramthatwederivedfromtheoverallintegratedOfficepackageandaseparatespreadsheetprogram.
"Muglia,2/26/99pm,at67:17-70:3.
ii.
InresponsetoMuglia'scommentsaboutOffice,ProfessorFeltentestified:"Inthisinstance,MicrosoftmakesWordandExcelavailableseparatelyforthoseuserswhowantthem.
Orforthoseuserswhowantboth,Microsoftprovidesasingleboxtheycanbuywhichgivesthemasingleinstall.
So,inotherwords,Microsoftcangivetheuserthechoicestheywant.
.
.
ThesameistruewithregardtoInternetExplorerandWindows.
MicrosoftcouldprovideasingleinstallforthoseuserswhowantbothWindowsandInternetExplorer,withouttakingawaytheotherchoicessuchasbuyingonlyInternetExplorer.
"Felten,6/10/99pm,at12:1-17.
159.
6.
2.
Intuitdescribesabrowseras"integrated"intoQuicken,eventhoughIntuitmustobtainabrowserfromanothercompany.
299i.
WilliamHarristestifiedthatinearly1995Intuitwasinterestedin"thepossibilityofbundlingabrowserandwithsomelightintegration.
"Thismeantcreatinga"mechanism""bywhich,withintheQuickenproduct,onecouldinstantiatethebrowserandinstructthebrowserastotheURLthatshouldbedisplayed.
"Harris,1/4/99pm,at8:23-9:5.
159.
7.
Otheroperatingsystemandbrowservendorsdeliversimilarbenefits,anddescribetheirproductsasseamlessly"integrated,"eventhoughtheycanbedistributedandinstalledseparately.
159.
7.
1.
Forexample,theCalderaOpenLinuxproduct,whichAllchinhimselfdemonstrated,provides"integrated"featuresyetiscompletelyremovableandreplaceable,justlikeanyapplicationinstalledontopoftheoperatingsystem.
159.
7.
1.
1.
CalderaOpenLinux,combinedwiththe"KDE"browser,provides"integrated"featuressimilartothosedeliveredbythecombinationofWindows98(or,asnotedabove,thecombinationoftheretailversionofWindows95andInternetExplorer4or5).
i.
ProfessorFeltentestifiedthatthevideodemonstrationproducedbyAllchin"claimedtoshow.
.
.
thatCalderaOpenLinuxshippedabrowser,whichMr.
Allchincharacterizedasintegrated,andthatthatbrowserhadsomeofthefeaturesthatMr.
AllchinsaidwerebenefitsoftheintegrationofIEintoWindows.
Inotherwords,itclaimedtoshowthatCalderawas,insomesense,actinglikeMicrosoftinachievingthesebenefitssupposedlybyputtinginanintegratedbrowser.
"Felten,6/10/99am,at23:7-14.
ii.
DuringJamesAllchin'scross-examination,thegovernmentproducedastillscreenshotofMicrosoft'svideopresentationthatdemonstratesthatthecombinationofCalderaOpenLinuxandtheKDEbrowserprovidesintegratedfeaturessimilartothoseofferedbyWindows98andIE,including1)single-windownavigation(alsoknown300asunifiedviewing)betweentheWebandlocalfiles,includingtheuseofbackandforwardbuttonstoletthecustomermanagelocalfilesandfolders,aswellasinternetcontent;2)unifiedfavoriteslist;and3)unifiedhistorylist.
SeeGX1707(stillscreenshotofMicrosoftvideodemoplayedintherecordatAllchin,2/1/99am,at61:1-66:21);seealsoFelten,6/10/99am,at23:20-24:21(examiningGX1707).
159.
7.
1.
2.
TheKDEbrowserisentirelyseparatefromtheOpenLinuxoperatingsystem;itisproducedbyadifferentcompany;itiseasilyreplacedbyanotheroperatingsysteminstalledontopofOpenLinux;consumerscanuninstallitatanytime.
i.
TheKDEbrowserisproducedseparatelyfromtheOpenLinuxoperatingsystem,byadifferentcompany.
Felten,6/10/99am,at26:5-14.
ii.
TheKDEbrowsercanbeeasilyreplacedwithotherbrowsersinstalledseparatelyontopofOpenLinux,andwillthendeliverthesameintegratedfunctionality.
Felten,6/10/99am,at26:15-18.
iii.
OpenLinuxcustomerscanchoosenottoinstalltheKDEbrowserorcanuninstallitatanytime.
Felten,6/10/99am,at26:22-25.
iv.
TheKDEbrowserprovidessimilarintegrationwheninstalledseparatelyontopofotheroperatingsystemstowhichitisportedbutwithwhichitisnotbundled.
Felten,6/10/99am,at26:19-20("KDEbrowserrunsonotheroperatingsystems,suchasSolaris,HP-UXandIRIX");Felten,6/10/99am,at27:1-11(KDEbrowserprovidesintegratedfeaturesifinstalledontopofotheroperatingsystems).
v.
Forallofthesereasons,ProfessorFeltentestified,"TheCalderaexamplecontradicts"Allchin'stestimony(AllchinDir.
3)"becausetheKDEbrowserisanadd-onproductanditcomesfromathirdparty,andyetitachievesthesebenefitsofintegrationthatMr.
Allchinsayscanonlybeachievedbyboltingthebrowserontotheoperatingsystem.
"301Felten,6/10/99am,at28:4-8.
Hecontinued:"WhatweseewithCalderaisapairofproducts,ifyouwill--theLinuxandtheKDEbrowser--whichworkwelltogether,andareintegratedinthatsense,butarenotinseparable.
"Felten,6/10/99am,at29:9-12.
159.
7.
2.
TheBeOSproductalsoprovidesintegratedfeaturesusingaremoveable,replaceablebrowserapplicationinstalledontopoftheoperatingsystem.
i.
Duringitsvideodemonstration,MicrosoftemployeeVinodVallipolilstated:"ThedemonstrationwillshowthattheBeOSincludesbrowsingandmultimediafunctionality,whicharebuiltdirectlyintotheoperatingsystem,andthatnothirdpartycodeisrequiredinordertoexercisethisfunctionality.
"Allchin,2/1/99am,at58:11-15.
ii.
GX1771(aseriesofscreenshotsthatshowsthatthebrowseronBe,NetPositive,isanapplicationlistedunderthe"apps"directorywhichcanberemovedbyclickingonitanddraggingittothetrashcan;removalresultsinreductionofsizetakenupbyapplicationsfrom4.
3megabytesto3.
0megabytes--areductionof1.
3megabytes);seealsoAllchin,2/2/99am,at13:5-19:13(BoieswalksthroughGX1771withAllchin).
iii.
TheNetPositivebrowsercanberemovedfromtheBeOS.
RemovingtheNetPositivebrowserfromtheapplicationsdirectoryfreesup1.
3megabytesofRAMontheBeOSapplicationsdirectory.
Allchin,2/2/99am,at13:5-19:13;GX1771.
iv.
AlthoughBe'shelpsystemwillnotfunctionfullyintheabsenceofabrowser,thehelpsystemwillworkifanotherbrowserisinstalledafterNetPositiveisremoved.
Allchin,2/2/99am,at20:5-21:4.
160.
Accordingly,evenifMicrosoft'sdesigncreatesbenefitsforsomeusers,forcingallofitscustomerstotakean"integrated"browseriswhollyunnecessarytoachievethosebenefits;Microsoft'sdecisiontoforceuserstotakethebrowserinordertogettheoperatingsystemis,asMr.
Allchinputit,simplyachoiceabout"distribution.
"302i.
ProfessorFishertestifiedregardingthetwosensesof"integrated":"Oneofthemistocalltwosoftwareitemsintegratediftheyrunseamlesslytogether.
.
.
Thesecondisintegrationinthesensethatitisimpossibleorverydifficulttosplititapart.
Now,astowhetherthatisanticompetitive,Ithinkforthatonehastothinkaboutsomemore.
Theconsumerbenefitdoesn'tcomefrom.
.
.
thefactthatcodeisdesignedinthatform.
Theconsumerbenefitcomesfromseamlessoperation.
Microsoft,inWindows95,designedInternetExplorer,particularlyInternetExplorer4.
0,andWindows95toworkseamlesslytogtherandbeintegratedinthatform.
Andthereis,youknow,evidencethattheycouldhaveperfectlywelldesignedWindows98andInternetExplorertoalsoworkseamlesslywithouthavingthewhatIhavereferredtotheotherdayastheweldedfeature,thedifficultyoftakingitapartfeature.
Ifthatisso,thenIthinkyes,itprobablywasanticompetitive.
.
.
becausetheycouldhavedoneitinawaythatislessrestrictive.
"Fisher,1/12/99pm,at4:5-6:20.
ii.
ProfessorFishertestified:"thereissubstantialtestimonyfromMicrosoftwitnesses.
.
.
thattheadvantagestoconsumersfromthecombinationofWindows98andIE.
.
.
couldbeachievedjustassubstantiallyasinhavingWindows95andIEseparatelywithoutthetwoofthembeing,sotospeak,sotightlyweldedastheyareinWindows98.
"Fisher,6/1/99am,at42:17-23.
Thattestimony,ProfessorFisherexplained,ledhimtoconcludethat"therearenoparticularconsumerbenefitsfromgettingthethingstogetherasopposedtogettingthemseparately,buttherearenoparticularadvantages--ImeaneconomiccostadvantagestoMicrosoftfromdeliveringthemtogether,asopposedtojustdeliveringthemseparately.
"Fisher,6/1/99am,at44:23-45:3.
(2)Microsoft'sforcedlicensingofitsbrowserisnotnecessarytoprovideOEMsanduserswithotherbenefits,suchasnewfileformatsanddataprotocols161.
ThereisalsonotechnicalreasontoforceuserstotakethebrowserwiththeoperatingsysteminordertosupplythemwiththeotherconsumerbenefitsMicrosoftidentifies.
Eachofthosebenefitscanbesuppliedseparatelybythebrowserandtheoperatingsystem.
161.
1.
Non-browsingfeatures.
MicrosoftpointsoutthatWindows98includesnon-webbrowsingfeaturessuchasDVDandUSBsupport(AllchinDir.
119-120).
Butthereisnoreasontoforceuserstotakeroutinesthatsupplywebbrowsingtoobtainthesefeatures.
i.
ProfessorFeltentestifiedthatthereare"plentyofthingsinWindows98,303unrelatedtobrowsing,thatarenotinWindows95.
PlentyofFeatures.
Forexample,supportfornewkindsofhardwaredevices.
"Felten,6/10/99am,at34:7-10.
ProfessorFeltenfurthertestifiedthatthereisnotechnicalreasontorequireuserstotakeInternetExplorertoobtainthesefeatures.
Felten,6/10/99am,at39:11-15.
161.
2.
SupportfornewInternetprotocolsanddataformats.
NordoesprovidingsupportfornewdataformatsandInternetprotocolsprovide,asMicrosoftsuggests(AllchinDir.
212-213),ajustificationforforcingusersandOEMstotakeMicrosoft'sbrowser.
161.
2.
1.
Fileformatsarecommonlysuppliedseparately.
Forinstance,AdobeAcrobatReader,athird-partyapplicationprovidedentirelyseparatelyfromWindows,providessupportforthepopular"PDF"fileformatcommonlyusedforviewingtextretrievedovertheWeb.
i.
ProfessorFeltentestified:"OneexampleistheAdobePDFviewer.
`PDF'standsforportabledocumentformat.
Andit'saverycommonly-usedformatfordescribingdocumentssothatyoucanmovethemfromcomputertocomputer,printthe,viewthemonyourscreenandsoon.
AndAdobemakesavailablesomeprogramswithnameslikePDFreaderorPDFviewerthatarewidelyusedforviewingandprintingPDFdocuments.
.
.
.
ItmaybeprovidedwithsomeOEM's,butIdon'tknowofanyinstanceinwhichanOEMisforcedtotakeitorauserisforcedtotakeit.
"Felten,6/10/99am,at42:11-23.
ii.
ProfessorFeltentestified:"again,ingeneral,there'sreallynoconnectionbetweenofferinguserstheabilitytosupportanewprotocoloranewformat--there'snoconnectionbetweenthatandforcingthemtotakeanyparticularsoftwareproduct.
"Felten,6/10/99am,at43:3-6.
161.
2.
2.
Similarly,MicrosoftneednotforcecustomerstotakeitswebbrowsertosupplysupportforHTML.
161.
2.
2.
1.
IncludingonlyanHTMLrenderingengineinits304operatingsystem--anoptionMicrosoftspecificallyconsideredbutrejected--wouldsuffice.
i.
Microsofthasafilewhich,amongotherthings,containsanHTMLrenderingmachine;thatfileisMSHTML.
DLL.
Felten,6/10/99am,at44:20-22.
Whenaskedwhethertherewereanyinherentreasontoputdifferentfunctions--HTMLrenderingandotherfunctions--togetherinthesameDLL,ProfessorFeltentestified:"therearemanywaysinwhichfunctionscanbegroupedintoDLL's.
.
.
.
Youmightmakeadecisionbasedonwhetherthingsfitinacertainway,"likeyouwouldwithorganizinggrocerybags,"butfactthattheicecreamandthecarrotsareinthesamebagdoesn'tnecessarilymeanthattheyarerelatedinsomeway.
.
.
.
It'spossibletoputunrelatedfunctionsintothesameDLL.
"Felten,6/10/99am,at45:6-19.
ii.
SpecificallyregardingMSHTML.
DLL,ProfessorFeltentestified:"YouhavethefunctionofanHTMLrenderingengineinthere,andyouhaveotherthingsaswell.
Thosethingscouldbeseparated,buttheyarenot.
"HefurtherexplainedthattherenderingenginecouldbetakenoutoftheDLL,oralternativetheotherstuffcouldbetakenout.
Felten,6/10/99am,at45:21-46:4.
iii.
InaMarch1997e-mail,similarly,Allchindiscussedtheideaofseparatingthe"shell"fromthe"browser"(IE4).
Indoingso,hepresentedsomedevelopmentoptions,includingthefollowing:"Movetheshell--butnotthebrowser--totheOSteam.
Thiswasmyrecommendationbeforeasyouknow.
Itmaynotbethethingyouwanttodoforotherreasons,butitistherightthingtodofortheOS(bothMemphisandNT).
IE4wouldjustplugintotheenvironment.
"GX616(emphasisadded).
iv.
SeealsosupraPartV.
B.
3.
c(1)(c);161.
161.
2.
2.
2.
Indeed,otheroperatingsystemvendors--whichlackMicrosoft'smonopolypower--includeaseparateHTMLrenderingengine,evenwhentheybundlearemovablebrowser.
i.
Apple'sAvadisTevaniantestifiedthatintheMacOS305"therearemultipleHTMLrenderers,"including"oneindependentoftheNetscapeNavigatorandInternetExplorertechnologies.
"Tevanian,11/5/98pm,at67:20-68:4.
d.
TheposthoceconomicjustificationsMicrosoft'switnesseshaveadvancedfortyingInternetExplorertoWindowsarecontrarytotheevidence162.
Microsoft'seconomicjustificationsforforcinguserstotakethebrowserwiththeoperatingsystem,andformakingthetwodifficulttoseparate,cannotbesquaredwiththeevidence.
(1)Microsoft'sconductwasnotplausiblydesignedorintendedtoincreasedemandforWindows163.
Microsoft'styingofInternetExplorertoWindows,andthedecisiontomakeitnon-removable,wasnotintendedtoincreasedemandforWindows.
163.
1.
Althoughcreationofanappealingnewcomplementcanincreasedemandforaproduct,thevalueofaproductismaximizedbyhelpingconsumersusethecomplementoftheirchoice,includingcomplements(likebrowsers)producedbyotherfirms.
i.
ProfessorFishertestifiedthat"ifbrowsersareacomplementtooperatingsystemssuchthatthesaleofbrowsersthatcanbeusedwithWindowswillincreasedemandforWindows,itshouldnotmatterwhomakesthecomplement.
"FisherDir.
129(b).
ii.
ProfessorFishertestifiedthatifMicrosoftweregenuinelytryingtomaximizedemandforWindows,"Idon'tknowthatMicrosoftwouldhaveaninterestinpromotingtheNetscapebrowser,butMicrosoftwouldsurelyhavenointerestinrestrictingitsdistribution,sincepeoplewhowantedtousetheNetscapebrowserwithWindowswouldbehappierpeoplewithWindows.
Tosomeextent,itwouldincreasethesaleofWindows.
"Fisher,6/1/99am,at66:3-8.
163.
2.
Microsoftdidnot,however,seektoaidconsumerswhowantedanon-306Microsoftbrowser.
Tothecontrary,ittookdeliberate,active,andcostlystepstoimpairthedistributionandusageofNetscapeNavigator,includingraisingthecoststobothOEMsandconsumersofsupportingandusingNavigatorthroughitstyingarrangementandrelatedcontractualrestrictions.
i.
ThetyingofInternetExplorertoWindowsitselfmadeitmoredifficultforuserstoobtainotherbrowsers.
Seeinfra169-171.
ii.
ProfessorFishertestifiedthat"ifbrowsersarecomplementstooperatingsystemssuchthatthesaleofbrowsersthatcanbeusedwithWindowswillincreasedemandforWindows,itshouldnotmatterwhomakesthecomplement.
ButMicrosoftcaredgreatlywhomadethebrowsersusedwithWindows.
"FisherDir.
129(b)iii.
ProfessorFishertestifiedthat"MicrosofteventriedtodiscourageNetscapefromofferingNetscape'sbrowserforusewithWindows-anactioninconsistentwithbrowsersbeingacomplementtoWindows,whosedistributionMicrosoftwantedtomaximize.
"FisherDir.
129(c).
iv.
ProfessorFishertestifiedthat"MicrosoftwaspreoccupiednotwithincreasingtotalsalesofbrowsersbutwithMicrosoft'sshareofbrowsersales.
Indeed,Microsoftstudied,andtriedtoimplement,waystodisableNetscpeandreducetotalbrowsersales.
Thatconductdoesn't'makesensefromabusinessstandpoint'ifbrowsersareviewedasameansofincreasingsalesofWindows.
ButthisconductmakesgoodsenseifbrowsersareviewedasacompetitivethreattoMicrosoft'sWindowsmonopoly.
"FisherDir.
129(e).
v.
WhenaskedwhetherMicrosoftdid,infact,attempttorestrictdistributionoftheNetscapebrowser,Fishertestified:"Oh,youbetyou.
Totakeaparticularexample,initscontractswithISPs,Microsoftdoesn'tmerelyrequirethattheISPshipsomeminimumnumber--Ithinkit'susuallyaround85%--ofInternetExplorerstotheISPsubscribers.
ThatrequirementalonewouldhavepermittedtheISPtoshipbothIEandNetscapeNavigator.
Thecontracts,infact,requirethattheISPnotshipmorethan,inthisexample,15percentofotherbrowserstotheISPs.
That'sarestrictiononNetscape.
IfMicrosoftwerereallyinterestedinsellingWindows,itwouldn'thaveanyinterestindoingthat.
Anditcan'thaveanyinterestindoingthattoprotectits,quote,salesofIE,endquote,becauseitdoesn'thaveany,quote,salesofIE,endquote.
It'sano-307revenueproduct.
"Fisher,6/1/99am,at66:12-25.
vi.
Dr.
Warren-Boultontestifiedthat"Microsoft's.
.
.
effortstoincreaseIE'ssharebyexcludingNetscapeandmakingitmoredifficultforuserstoobtainNetscape'sbrowsercouldonlyreducethevalueofitsoperatingsystemtoconsumers.
"Warren-BoultonDir.
187.
(2)Microsoft'stie-inandrelatedrestrictionswerenotreasonablynecessarytopreservetheintegrityoftheWindowsplatform164.
Microsoft'sargumentthattyingthebrowsertotheoperatingsystemisreasonablynecessarytopreservethe"integrity"oftheWindowsplatform(AllchinDir.
85;KempinDir.
29)ispretextual.
164.
1.
First,concernwiththe"integrity"oftheplatformcannotexplainMicrosoft'soriginaldecisiontotieInternetExplorertoWindows95becauseInternetExplorer1and2didnotcontainAPIs.
i.
SeeinfraPartV.
G.
6.
a;312.
1.
164.
2.
Second,concernwithintegrityoftheplatformcannotexplainMicrosoft'srefusaltoofferOEMstheoptionofWindows95or98withInternetExploreruninstalledoritsequivalentbecauseAPIs,likeallothersharedfiles,areleftonthesystemwhenInternetExplorerisuninstalled.
i.
ProfessorFeltentestifiedthat"IhaveimplementedtheprototyperemovalprogramtocontinuetosupporttheabilityofISVstouseallofthesharedprogramlibrariesshippedwithWindows98.
Suchsharedprogramlibrariesareleftsubstantiallyunchanged,thoughtheyarenolongerusedinthecourseofWebbrowsingwithouttheadditionofanothersoftwareprogramsuchasAOL'saccesssoftwareorIntuit'sQuickenpersonalfinancesoftware.
MicrosoftcouldhaveproducedaversionofWindows98withoutWebbrowsinginawaythatdidnotadverselyaffectthefunctionalityofISVapplications.
"FeltenDir.
56.
308ii.
ProfessorFeltentestifiedthatleavingsharedfilesinplace"conformstotheordinarywayinwhichsoftwareapplicationprogramsareremoved,"aswellastotheinstructionsthatMicrosoftitselfgivestoapplicationdevelopers.
SeeFeltenDir.
57(citingGX431,Microsoft'sHandbookforApplications,p.
29).
iii.
Dr.
Warren-Boultontestifiedthat"Microsoft'sobjectiveofsupplyingISVswithaconsistentplatformdoesnotprovideaneconomicjustificationforbiasingOEMs'choiceofwhichbrowsertofeature"because"Microsoft'sdesigndecisionwasarbitrary;Microsoftcouldhaveput'platformfiles'[suchassharedfiles]entirelyintheoperatingsystemandnotincludedanysuchfilesinitsbrowserproduct.
"Warren-BoultonDir.
165;id.
166-167.
164.
3.
Third,Microsoft'sconcernthatofferingOEMsthechoiceastowhethertoinstallcertainbrowser-relatedAPIswouldfragmenttheWindowsplatform(KempinDir.
29)isinsubstantialbecauseOEMs,whichoperateinacompetitivemarket,haveampleincentivestoincludeAPIs(includingnon-MicrosoftAPIs)forapplicationstheircustomersdemand.
i.
ProfessorFishertestifiedthatMicrosoft'sconcernwithofferingdevelopersastable,up-to-dateplatformisinsubstantialbecause"it'snotobviousthatthoseAPishavetobeMicrosoft'sAPI'sfortheretobeastablesetofAPI'sofferedtodevelopers.
"Fisher,6/3/99am,at21:21-22:20.
164.
4.
Fourth,evenifthereweresomepotentialbenefitfromforcedlicensingofasinglesetofAPIstoallOEMs,anysuchjustificationcouldnotapplyinthiscasebecauseMicrosoftitselfperpetuatesfragmentationoftheplatform.
i.
Dr.
Warren-Boultontestified:"TherearemillionsofPCsrunningearlierversionsofWindowsreleasesthatlackthelatestversionsofWindows95orWindows98.
ToensurethatthesoftwaretheydeveloprunsnomatterwhichversionofWindowsaPCcontains,ISVscommonlyredistributenecessarysharedprogramlibrarieswiththeirsoftware.
Inshort,Microsoft'sownpracticeofcontinuallyupdatingitsplatformmeansthatapplicationdevelopersmustrepliatepartoftheplatformwiththesoftwaretheydistributeand,therefore,thattheeffectonanOEMremovingcertainpartsofthe'platform'islikelytobesmall.
"Warren-BoultonDir.
170.
309164.
4.
1.
BecauseMicrosoftfrequentlyreleasesnewAPIswithitsupdatedversionsofInternetExplorerandWindows,theinstalledbaseofWindowsPCshasverydifferentsetsofAPIs.
Microsoft'spracticeofcontinuallyupdatingthoseAPIsperpetuatesthisfragmentation.
i.
ProfessorFishertestifiedthat"theMicrosoftAPIsarenot,infact,stable.
Theychange.
AndISVshavetokeepembeddingpiecesoftheappropriateAPIsintotheirownsoftwareandshippingitout.
"Fisher,6/3/99am,at22:11-14.
Healsotestifiedthat"ISVshavetoredistributeIEcodeanywaybecauseMicrosofthasputsomanydifferentreleasesoutthere.
"FisherDir.
165.
ii.
Dr.
Warren-Boultontestified:"TherearemillionsofPCsrunningearlierversionsofWindowsreleasesthatlackthelatestversionsofWindows95orWindows98.
ToensurethatthesoftwaretheydeveloprunsnomatterwhichversionofWindowsaPCcontains,ISVscommonlyredistributenecessarysharedprogramlibrarieswiththeirsoftware.
Inshort,Microsoft'sownpracticeofcontinuallyupdatingitsplatformmeansthatapplicationdevelopersmustreplicatepartoftheplatformwiththesoftwaretheydistribute.
Warren-BoultonDir.
170.
iii.
JohnGailey,DirectorofEngineeringforNovell,declaredthat:"BecauseMicrosoftisconstantlychangingandupdatingthesystemservicesprovidedbyWindows95,NovellbundlessomeofthoseoperatingsystemserviceswithGroupWiseinordertoensurethatallusershaveavailabletothemthelatestversionofthesystemserviceGroupWiseiscallingupon.
"FisherDir.
165(quotingGaileyDecl.
11/17/97).
164.
4.
2.
ISVshaveadaptedtothisrealitybyredistributingneededAPIswiththeirapplicationsinordertoensurethattheAPIsgetinstalledontheuser'sPC;tofacilitatethis,MicrosoftmakestheAPIsitshipswithInternetExploreravailabletothirdpartydevelopersfordistributionwiththeirproducts.
i.
Microsoft'sDavidColetestifiedthatmanyISVsredistributeInternetExplorerinorderto"upgradetheoperatingsystemtothe310leveltheyneedtoruntheirapplication.
.
.
.
That'saverycommonpractice.
"ColeDep.
,1/13/99,at390:20-24.
ii.
JamesAllchintestifiedthat"MicrosoftdoeslicensedeveloperswhoseproductsrelyonInternetExplorertechnologiestoshipthemwiththeirproductssothatolderversionsofWindowscanbeupgradedtothenecessaryleveloffunctionality.
"AllchinDir.
135.
Allchintestifiedthat"wedothisforgraphicsandeverythingelse.
Wetakethesystemtotheinstalledbase,providepiecesofsoftwarethatupgradeit.
GamesthatruneasilyonWindows95wouldn'toperatecorrectlyonWindows95withoutadditionalsoftware.
.
.
calledDirectX.
So,weeitherhaveupdatedWindows95,weputitonthewebsiteorevenletpeople,ISVs,vendors,shipthatsoftware.
Soit'sallabouthowfarwetakeitaboutaddingnewfunctionalitytothesystemfortheinstalledbase.
"Allchin,2/1/99pm,47:10-19;seealsoMaritzDirect171;JonesDep.
,1/13/99,at535:6-536:6.
iii.
WilliamHarristestifiedthat:"Thecombination,orseparation,ofsoftwareproductsorcomponentswillalmostalwayshavesomepotentialadvantagesandsomepotentialdisadvantages.
ForIntuit,inparticular,distributingabrowserwithourproducts,ratherthanaspartoftheoperatingsystem,hassomerealadvantages.
ThefactthatIntuitcurrentlydistributesaversionofInternetExplorerwithQuickenisillustrativeofthispoint.
IntuithasexertedhundredsofhourstestingandverifyingthatQuickenwilloperatewiththespecificversionofInternetExplorerthatcomeswithQuicken.
IfaQuickencustomerdoesnotalreadyhaveacompatibleversionofInternetExplorer,QuickenwillinstalltheversionofInternetExplorerthatcomeswithQuicken.
ThisensuresthatQuickenwillworkthewayitwasintendedandtested.
"HarrisDir.
85.
iv.
ProfessorFishertestifiedthat"ISVshavetoredistributeIEcodeanywaybecauseMShasputsomanydifferentreleasesoutthere.
"FisherDir.
165;seealsoFelten,6/10/99am,at61:10-14.
v.
GlennWeadocktestifiedthatapplicationsthatupdateWindowsDLLsarecommon.
Weadock,11/17/98am,at25:15-26:10.
vi.
RobertMugliatestifiedthat,becauseofdifferencesinimplementationsofJava,ISVssimilarlyredistributeJavavirtualmachineswiththeirJavaprogramstoensurethatthoseprogramswillfunctionproperly.
MugliaDir.
87,104,107.
311164.
4.
3.
ThisisequallytrueofMicrosoft,whichdistributesAPIs--includingthosedistributedwithInternetExplorer--withanumberofMicrosoftapplications.
i.
MugliatestifiedthatMicrosoftwilldistributeInternetExplorerwithOffice2000:"ThereisupdatedWindowsfunctionalitythatweneedtotakeadvantageof.
So,tomakesurethatfunctionalityisontheuser'scomputer,wearedistributingitwithOffice2000,justlikeotherISVshavetheoptiontodo.
"Muglia,2/26/99pm,at67:3-11;seealsoGX727(MicrosoftOffice97redistributesallofInternetExplorer3,andinstallscertainInternetExplorercomponentsthatitneedstofunctionproperly).
ii.
ProfessorFeltentestifiedthatMicrosoftitselfredistributesvariousInternetExplorercomponentswithitsapplicationproductsOffice97,Money98,Money99,Frontpage98,VisualStudio6.
0,MSN,andPlus98.
Felten,6/10/99am,at62:13-15.
iii.
GX2220(seriesofscreenshotscapturedfromthebeginningoftheinstallationprocessforVisualStudio)("VisualStudiocomeswiththelatestversionofInternetExplorer4.
01.
TheupdatedversionofInternetExplorer4.
01isanessentialcomponentofVisualStudio6.
0EnterpriseEditionandinstallationisrequired.
");seealsoFelten,6/10/99am,at67:12-71:4.
164.
5.
AlthoughGordonEubankstestifiedthatredistributingsoftwarecomponentswasinefficientforISVs,headmittedthatSymantec,infact,routinelyredistributedInternetExplorercomponentsinitsordinarybusiness.
i.
Eubankstestifiedthat,untilrecently,Symantec"shippedarenderingenginewithNortonUtilitiessowecoulddisplayHTMLbecausewecouldn'tcountoneverycustomerhavingabrowser.
"Eubanks,6/16/99pm,at76:25-77:3.
ii.
Eubankstestifiedthat"inthepast,wediddistributethisHTMLrenderingDLL,anditwasusedbycomponentsofNortonUtilities.
"Eubanks,6/16/99pm,at74:5-8.
312(3)Microsoft'squality-relatedjustificationsarepretextual165.
Microsoft'squality-relatedjustificationsaresimilarlypretextual.
165.
1.
Asexplained,Microsoft'sdesignofWindows98deliverstoendusersnotechnicalbenefit(asidefromtheabilitytobrowsetheweb)thatcouldnotbeachievedinaversionwithoutwebbrowsing.
i.
SeeinfraPartV.
B.
2.
e.
(3)(b);151-154.
165.
2.
Microsoft'sconcernthatmeetingdemandforWindowswithoutInternetbrowsingwilldegradeproductqualityoritsreputationisinsubstantialinanyeventbecause,ifconsumersgenuinelyprefertheversionofWindowsbundledwithInternetExplorer,theywouldchooseitinthemarket.
i.
ProfessorFishertestifiedthat"ifconsumerspreferseamlessoperation,theywouldchoseitinacompetitivemarket,"andthat"competitionleadstoaconsumer-drivenarrangementof.
.
.
whatgetsproduced,whatgetsdistributedandsoon.
Ifweldingittogetheractuallyprovidedbenefits,thenconsumerswouldchoosetheweldedversionasopposedtoaseparateversion,andtheywouldbewillingtopaymore.
"Fisher,1/12/99pm,at6:3-7:7.
ii.
ProfessorFishertestifiedthat:"Theconsumergetsthesamebenefitsifit.
.
.
acquiresthosetwothingsseparately.
Inthatevent,thereisnoreasonwhyMicrosoftshouldn'tofferthemtypicallyseparatelythroughoutandletconsumersdecide,ifthosearereallygoodbenefits,thattheywanttoacquirethem.
"Fisher,6/1/99am,at44:6-12.
iii.
Dr.
Warren-BoultontestifiedthatifremovingInternetExplorerfromWindows98"wouldaffectthewayinwhichWindows98wouldoperateeitherbyitselfwithoutabrowserorwithNetscape,thenthatwouldmeaninthemarketpeoplewouldlookatthatproductandsay'Idon'tlikethatproductverymuch.
'Andwhatwouldhappenispeoplewouldn'tchooseit,andsotheoutcomeofthetestwouldbe,infact,thatpeoplewouldsayIdon'twanttohavethetwoproductsseparately.
"Warren-Boulton,11/24/98pm,at22:25-23:7.
313iv.
Dr.
Warren-Boultontestifiedthat"Idon'tthinkthatMicrosoft--thereisanyreasonwhyMicrosoftcannotinformthecustomersthatthisisaWindows98productthatdoesnothaveIE.
"Warren-Boulton,11/24/98pm,at23:15-20.
165.
3.
EnsuringeaseofpreinstallationandconfiguringtheproductsimilarlycannotjustifyMicrosoft'stie-in.
165.
3.
1.
OEMscanprovidethebenefitofpreinstallingandconfiguringtoendusersjustaseffectivelyasMicrosoft,andthoseOEMsthatwantMicrosofttoperformthatservicecanobtainabundledversionfromMicrosoft.
i.
Whenaskedwhether"somecustomersmightliketoopenupanewPC,plugitin,andgetconnectedtotheInterneteasily,"ProfessorFeltentestified:"Absolutely.
Ithinkalsothatthosecustomerswouldprefertohavethebrowseroftheirchoicepre-installedonthesystem.
AndI'mnotsayingthatOEM'sshouldnotbefreetodothat.
ThewholepointthatI'mtryingtomakeinmytestimonyandthewholepointoftheprototyperemovalprogramistryingtomakeisthatthatchoicecouldbeprovidedtoendusers,toOEM'sandallalongthesupplychainsothatuserscanhavewhattheywant.
"Felten,12/14/98pm,at28:2-13.
ii.
ProfessorFarbertestifiedthatnoneofhistestimony"deniesthepossibleconvenienceorpreferenceofsomeusersfor'onestopshopping'forbundledproductssuchasthecurrentversionofWindows98soldasoneproductbyMicrosoft.
ThoseOEMsandretailenduserswhomayfindthisconvenienceoutweighsanytechnicalinefficienciesdescribedherecancertainlystillchoosetobuyWindows98intheformitnowexists.
"FarberDir.
28.
iii.
MugliaconcededthattheinconvenienceofmultiplesetupproceduresforcustomersisnoreasonnottoofferanunbundledversionofMicrosoftOffice;"Sure,ofcoursenot.
Again,we'rejustprovidingchoicesforcustomers.
We'resayingifpeoplewanttobuyjustawordprocessororspreadsheet,theyhavetheoptiontodoso.
"MugliaDep.
(played6/10/99pm),at11:17-21.
iv.
IBM'sJohnSoyringtestifiedthatPCsuppliers"generallyhaveampleabilitytoincludeapplicationssuchasabrowserwithan314operatingsystemandloadthiscombinedsetofproductsontheirmachines.
"SoyringDir.
21;seealsoid.
22("[PCsuppliers]caninstallbrowsersontheoperatingsystemonmachinestheyship,solongastheyaregivenappropriateinformationbythebrowsersupplierandaregivenanyinformationspecifictotheparticularoperatingsysteminvolvedbythebrowsersupplierortheoperatingsystemsupplier.
").
v.
Whenaskedwhethertheconvenienceofasingleinstallationprocedurewas"acompellingrationalerequiringuserstotakeInternetExploreralongwithWindows,"ProfessorFeltenanswered:"No,it'snot.
IfauserwantsbothWindowsandInternetExplorer,they--Microsoftcanofferthemthatoptionwiththesingleinstall.
ButauserwhoonlywantsWindowswithoutInternetExplorercangetthatinasingleinstall.
"Felten,6/10/99pm,at5:19-6:1.
vi.
ProfessorFeltentestifiedthat"MicrosoftcouldprovideasingleinstallforthoseuserswhowantbothWindowsandInternetExplorer,withouttakingawaytheotherchoicessuchasbuyingonlyWindowsoronlyInternetExplorer.
"Felten,6/10/99pm,at12:14-17.
165.
3.
2.
MicrosoftgivesuserstheoptionofinstallingoruninstallingotherprogramsthatitdistributeswithWindowsorwithothersoftwarebundles.
i.
AseriesofscreenshotsfromWindows98showsthattheoperatingsystemhasmenusfromwhichvarioussoftwareprograms,unlikeIE,canbeinstalledoruninstalledfromWindows.
GX1700.
ii.
WebTVforWindowscanbeoptionallyinstalledorremovedfromWindows98despitethefactthatitisdeliveredalongwiththeintegratedInternetExplorer5.
Felten,6/10/99,at19:24-20:20(WebTVfallsunder"add/remove"controlpanelonWindows98).
iii.
Microsoftprovidessingleinstallationwith"noassemblyrequired"optionallyinthecaseofMicrosoftOffice,allowinguserstochoosewhethertoobtainalltheprogramsbundledtogetherinOfficeatthesametimeorseparately.
Seesupra165.
3.
1;Felten,6/10/99pm,at11:22-12:17.
3154.
Microsoft'styingofInternetExplorertoWindowshascausedsignificantexclusionaryeffectsandconsumerharm166.
Microsoft'scoercivebindingofInternetExplorertoWindowsraisedthecostsofusingotherbrowsers,facilitatedMicrosoft'sobjectiveofpreventingNetscapefromdevelopingintoaviablethreattotheapplicationsbarriertoentry,andtherebyharmedconsumersandaidedMicrosoftinitsobjectiveofpreservingitsoperatingsystemmonopoly.
a.
InstallingasecondproductinasoftwarecategoryimposescostsonOEMs167.
Microsoft'sconductraisedthecoststoOEMsofcarryingNetscapeorotherbrowserproducts.
(1)Increasedtechnicalsupportcosts167.
1.
OEMsbearessentiallyallthecustomersupportcostsforthecomputerstheysell,includingthoserelatedtoWindows,eventhoughWindowsisMicrosoft'sproduct.
i.
Microsoft'slicensingagreementswithPCOEMsrequirethemtoGX418(Toshiba)(sealed);seealsoGX410(DEC),atMS980008841(sealed).
ii.
JosephKanickitestifiedthatDellbearssupportcostsforthecomputersitsells.
KanickiDep.
,1/13/99pm,at342:5-7.
iii.
GayleMcClaintestifiedthatGatewayprovidescustomersupportforthemachinestheysell,andthat"anewusercouldcallregardingalmostanything,"includingbeingconfusedbyclutteronthedesktop.
McClainalsotestifiedthatthereisnomechanismforMicrosofttoreimbursethemforanyofthosesupportcosts.
McClainDep.
,1/13/99pm,at616:15-617:12.
iv.
JohnRosetestifiedthatCompaqbearscustomersupportcostsforboththe316hardwareandsoftwareonthePCsitsells.
Rose,2/18/99pm,at41:23-42:11;seealsoRoseDir.
15("Manyofourconsumercustomersdonotcaretoknowtheconstituentcomponents(oreventhecomponents'brandnames).
Rather,theyarebuyingthe'outofthebox'experience.
Theywanttheircomputerstobesimpleandeasytouserightoutofthebox,andtheylooktotheCompaqbrandtomakethatexperienceagoodone.
").
v.
Soyringtestified:"SoftwaresuppliersoftenprovidebetterpricingtoPCsuppliersifthePCsupplierrespondstothesupportcallsfromcustomersandhandlestheinitialanalysisofpotentialproblems.
Thisactivitycanrangefromsimpletoverycomplexandcaneveninvolvereviewandanalysisofthesourcecodeforthesoftwareinvolved.
"SoyringDir.
20.
167.
2.
Addingasecondproductinagivencategory,includingabrowserorthevisiblemeansofaccessingthebrowser,cansignificantlyincreasethosesupportcosts.
i.
WhenaskedwhetherCompaq'ssupportcostswouldgoupiftheyinstalledmorethanonebrowseronaPC,Rosetestifiedthat"Iwouldexpectthatasthenumberofmultiplethingsgoup,thesupportcostswouldgoup.
"Rose,2/18/99pm,at42:12-22.
RosetestifiedthatCompaqhadevaluatedtherelativecostsandbenefitsofpreinstallingmorethanoneproductinanyparticularsoftwarecategory,andreachedthefollowingconclusions:"'That,one,it'sexpensive;putsagreatercostburdenonCompaq;addsmorecomplexity;causesconfusiontothecustomers,particularlyconsumercustomers,thatdon'thaveanypersonalcomputingexperience.
'"RoseDep.
(read2/18/99pm),at45:25-47:13;seealsoRose,2/18/99pm,at47:25-48:14.
ii.
Soyringtestifiedthat,"evenifthereiscustomerdemandforanotherbrowser,thePCsupplierhastoconsiderthecostofthesecondbrowser.
EveniftheotherbrowsersupplieroffersittothePCsupplierforfree,thePCsupplierwillincursubstantialadditionalcosts,includingadditionaltesting,distributionandsupportcosts.
"SoyringDir.
27.
iii.
Soyringalsotestified:"Whenevermanufacturersinstallanadditionalprogram,thereusuallyisincrementalcost,notjustthefeeforthelicense,buttrainingtheirstafftobuildtheimagethat'spreloadedontheharddisk,orwhatevermediatheychoose,totraintheirsupportstaff,becausetypicallycontractswithsoftwaremanufacturersrequirethatthefirsttwolevelsofcustomercontact,ifthere'sasupportproblem,iswiththeP.
C.
manufacturer;therefore,thereisadditionaltrainingcost.
There'scoststhatgointotheirmarketingprogramstoexplainthevariousproductsthat317they'veinstalledandthevaluetotheircustomer.
Soyes,thereareadditionalcosts.
"Soyring,11/18/98am,at70:15-71:1.
iv.
Microsoft'sGayleMcClaintestifiedthatmultipleicons,or"redundancyoffunctioninvariousplaces,"isconfusingtoendusers(McClainDep.
,1/13/99pm,at623:6-624:11),andthatGatewaywantedtoremoveiconsfromWindows98becauseofconcernaboutclutteronthescreen.
McClainDep.
,1/13/99pm,at614:5-615:9.
v.
AccordingtoJohnKies,SeniorProductManagerforthePackard-Bell/NECVersaNotebookproductline,Packard-Bell/NECwouldnotpreinstallNavigatorifInternetExplorerisalreadypreinstalledbecause"Itwouldn'tmakesensetohavetwoverylargeprogramsinstalledusinguptheharddiskdriveanditmightbeconfusingtotheenduserastowhytwoofthesameapplicationswereincluded.
"KiesDep.
(played11/17/98am),at68:13-21.
vi.
Basedonthistestimonyandotherevidence,ProfessorFisherconcludedthat"someOEMspreferredtoloadonlyonebrowsertoavoiduserconfusionandtheresultingconsumersupportcosts,andtoavoidincreasedtestingcosts.
"FisherDir.
150.
vii.
Dr.
Warren-BoultonexplicatedOEMtestimonythathavingInternetExplorerincreasesthecosts,andreducesthebenefits,ofasecondbrowser(Warren-Boulton11/24/98pm,at59:18-59:25);further,hetestifiedthatInternetExplorersupportcostsaresignificantcoststoOEMs.
Warren-Boulton,11/24/98pm,at26:19-27:10.
(2)Additionaltestingcosts167.
3.
PreinstallingasecondproductinagivensoftwarecategorycanalsoincreasetheOEM'stestingcosts.
i.
Dr.
Warren-BoultontestifiedthatifOEMspurchaseWindows"alreadywithIEonit,thenyou'vegottotesttomakesurethatyoursystemiscompatiblewiththeWindowsIEbundle.
Ifitdidn'tcomewithIEonit,thenyoujustwouldhavetotestitwithNetscape.
Sothepointisthat,IthinkasMr.
Kempinhaspointedout,ifyouuseIE,youonlyneedtotestitonce.
IfyouwanttouseNetscape,you'vegottotestittwice.
"Warren-Boulton,11/30/98am,at14:16-24.
ii.
ProfessorFishertestifiedthat"someOEMspreferredtoloadonlyone318browsertoavoiduserconfusionandtheresultingconsumersupportcosts,andtoavoidincreasedtestingcosts.
"FisherDir.
150.
iii.
Weadocktestified:"Itiscertainlyalsoimportantthatweavoidthetestingcostsassociatedwithsupportingadualbrowserend-userenvironmentoranenvironmentinwhichusersclickoneplaceandrunonebrowserandclicksomewhereelseandrunanotherbrowser.
Thatincreasesanorganization'stestingcosts,becausenowtheyhaveto--theycan'trelyonNavigatorbeingtheonlybrowserthatuserswillactivate.
"Weadock11/17/98am,at74:3-11.
(3)Opportunitycosts167.
4.
Preinstallingasecondapplicationinagivensoftwarecategoryalsotakesupscarceandvaluablespaceonthecomputer'sharddriveanddesktop.
i.
AccordingtoJohnKies,SeniorProductManagerforthePackard-Bell/NECVersaNotebookproductline,Packard-Bell/NECwouldnotpreinstallNavigatorifInternetExplorerisalreadypreinstalledbecause"Itwouldn'tmakesensetohavetwoverylargeprogramsinstalledusinguptheharddiskdriveanditmightbeconfusingtotheenduserastowhytwoofthesameapplicationswereincluded.
"KiesDep.
(read11/17/98am),at68:13-21.
ii.
StephenDeckertestifiedthatCompaqstoppedpreinstallingNetscapeonthecomputersitsellsbecause"withtheinclusionofInternetExplorerfromMicrosoft,thatcategoryisalreadyfilledbecauseoftheinclusionofthatproductaspartoftheoperatingsystem,andthenalsotoactuallylicensetheadditionalbrowserthatwouldinvolvebothtimebyCompaqtoputthatparticularagreementinplace,wewouldhaveanotherproductthatwouldtakeuprealestateonourharddriveand,youknow,therepotentiallywouldbesomeadditionallicensingfees,andwewouldhavetopayforthattechnology.
DeckerDep.
(read2/18/99am),at61:8-21.
iii.
ProfessorFishertestifiedthat"someOEMsviewedthedesktopand/ordiskspaceasscarcerealestateandweregenerallyreluctanttopreinstallmorethanonesoftwaretitleineachfunctionalcategory.
"Fisher151.
319b.
Microsoft'stie-inandassociatedcontractualrestrictionsraisedthecoststoOEMsof,andthusdeterredOEMsfrom,preinstallingNetscapeandothernon-Microsoftbrowsers168.
Microsoft'sconducthasdeterredOEMsfromloadingNetscape(andotherbrowserrivals)andthussignificantlycontributedtoMicrosoftschemetoraiserivals'costsandgainbrowserusageshare.
i.
AMicrosoftOEMsalesmanager,CandaceGrisdale,respondedasfollowstoaMay1998newsarticlesuggestingthatHewlett-PackardmightbundleNavigatoronallitsPClines:"HPwe'veknownwasclosetoNSCPbuteachtimewe'veaskedthemoftheirplans,theyhavesaidtheydonotwanttocarrytheburdenoftwobrowsers,unlessthecustomersegmentdemandsit.
"GX323.
ii.
MalRansomtestifiedthatNetscapeapproachedPackardBellaboutpreinstallingNavigator.
PackardBellseriouslyconsidereddoso,butdecidednottobecausePackardBelldidnotwanttocarrytheburdenoftwobrowsersonitsmachines.
RansomDep.
(played12/16/98pm),at74:12-75:6.
iii.
CompaqremovedNetscapeonceitwascompelledbyMicrosofttorestoretheInternetExplorericontothedesktopbecauseoftheincreasedcostsofsupportingasecondbrowser.
SeeinfraPartV.
C.
1.
b.
(2);179.
iv.
ProfessorFishertestifiedthat,"sinceMicrosoft'styingarrangementensuresthatIEisoneveryWindowsPC,theresultisasignificantexclusionaryeffectthatensuresthatIEistheonlybrowseronmostPCsshippedbyOEMs.
"FisherDir.
152;seealsoFisher,1/6/99pm,at12:21-13:2(OEMsdon'tfinditprofitabletoinstallNavigatorbecauseInternetExplorerisalreadythere).
v.
Dr.
Warren-BoultontestifiedthatasignificantexclusionaryeffectcanbeinferredfromthefactthatIEusersaremorelikelythanNetscapeuserstohavegottentheirbrowserthroughtheOEMchannel.
Warren-Boulton,11/24/98pm,at58:16-59:12.
vi.
SeegenerallyinfraPartVII.
A(describingboththeraisingofrivals'costsanditsimpactonOEMcarriageofNavigator).
c.
Microsoft'sconductsimilarlyraisedthecoststoendusersofemployingnon-Microsoftbrowsers169.
Microsoft'sconductsimilarlyraisesthecoststoendusersofemployingnon-320Microsoftbrowsers.
(1)Itisundesirableforaconsumerwhowantsonetypeofbrowsertohaveadifferentbrowserpre-loadedonhisPC170.
Foraconsumerwhodesirestouseaparticularbrowser,theexistenceofadifferentbrowserpre-loadedonthePCisnotonlysuperfluousbutalso,forseveralreasons,undesirable.
i.
ProfessorFeltentestified:"Providingcodethatpeopleactuallyuseisefficient,butprovidingcodethatisnotbeingused,orpackagingcodethatisnotbeingused,orcodethattheuserdoesnotwantalongwithcodetheuserdoeswant,asMicrosofthasdoneinthiscase,isnotefficientandmakesthingsworsefortheusers.
"Felten,12/14/98am,at51:14-21.
ii.
ProfessorFeltenalsotestifiedthat"ingeneralifyouknowthattheuserdoesnotwantsomething,itcanonlybeinefficienttoforcethemtotakeit.
AndyouwillnotethatwithrespecttoInternetExplorerinWindows98,wearetalkingaboutforcingtheusertoinstallsoftwarethattheydon'twantontotheirharddisk.
WhentheybootWindows,thatsoftwaretheydon'twantisloadedintothememory.
AndasProfessorFarberexplained,insomecasesthatsoftwareisevenrun,andInternetExplorerpopsupeventhoughtheuserdoesn'twantit.
It'scertainlyinefficienttodothat.
IalsowanttopointoutthatwhenItalkaboutefficiency,asacomputerscientist,I'musingitinthebroadestsense.
Thatis,I'mincluding--I'mincludinginefficienciesthatdevelop,forexample,becauseofuserconfusionbecauseofunwantedbehavior.
Mr.
Weadocktalkedaboutthecostinsupportcallsandlostproductivitybecauseofthosecases,andthosealsoapplyinthecaseofWindows98andIE.
"Felten,12/14/98pm,at11:16-12:9.
iii.
Weadocktestified:"Ifanorganizationwantstostandardizeonaspecificbrowserforreasonsofcross-platformaccess,thentheymaywanttochooseabrowserlikeNavigator,asopposedtoabrowserlikeInternetExplorer,inwhichcasetheydon'twantInternetExploreronthemachine.
"Weadock,11/17/98am,at43:5-10.
170.
1.
UnusedsoftwareonaPC,particularlyaprogramaslargeasamodernbrowser,takesupscarceandvaluablespaceontheuser'sharddriveandmaythereforeincreasehardwareresourcerequirements.
i.
ProfessorFeltentestified:"ForcingsomeusersorOEMstotakesoftwaretheydonotwantisinefficient,sincetheunwantedsoftwareneedlessly321usesresourcessuchasdiskspaceandmemory,andincreasesthecomplexityoftheuserinterfacebyclutteringitwithunwantedicons,menuitems,andprograms.
"FeltenDir.
67.
ii.
Weadocktestifiedthat"ifauserwantsWindows98,doesn'twantInternetExplorerandwantsNetscape,thenthecomminglingofcodebetweenWindows98andIEmayresultinatotalpackagethatusesmorememoryandmorediskspacethanifMicrosofthadnotcommingledInternetExplorerandWindows98.
So,it'snotabenefitforeverybody.
"Weadock,11/16/98pm,at44:16-23.
iii.
Weadocktestified:"Therequiredhardwareresourcescanincreasesignificantlywhenanoperatingsystemintegratesapplicationsoftware,"andthat"Windows98requiresagreatdealmorediskspaceandsignificantlymorememorythanWindows95,largelyduetoInternetExplorersoftware.
"WeadockDir.
32d.
170.
2.
Thedrainplacedonasystembyadditional,undesiredsoftwareincreaseswhenthatsoftwareis"integrated"insomefashionwiththecomputer'soperatingsystembecausecodeusedbytheoperatingsystemismorelikelytoconsumecriticaldynamicmemory,orRAM,inadditiontostoragespaceontheharddrive.
Forthisreason,"integrating"certainadditionalsoftwareintotheoperatingsystemisalsomorelikelytocausestabilityproblems.
i.
Weadocktestified:"Thelikelihoodofanapplicationfailureaffectingtheoperatingsystemmayincreasewhencodeissharedbetweenthetwo.
"Forexample,"IhavenoticedinmyownexperimentswithWindows98thatthefailureofanInternetExplorerWindowcancausetheentiredesktoptomalfunction.
"WeadockDir.
32a.
ii.
Weadocktestified:"Anapplicationthatmodifiesoperatingsystemfilescouldcreate(and,inthecaseofInternetExplorer,hasbeendocumentedinsomecasestocreate)conflictswithotherapplicationsandwithcompany-developedapplications.
"WeadockDir.
32b.
iii.
Finally,Weadocktestified:"Itmaybecomemoredifficulttoenforcesecuritywhenanoperatingsystemintegratesapplicationsoftware.
"Forexample,"[s]ecuringthesystemagainstusersrunningprogramsthatmanagementdoesn'twantthemtorunbecomesmoredifficultasapplicationsoftwareisfoldedintotheoperatingsystem.
"WeadockDir.
32232e.
iv.
JohnSoyringtestifiedthat"integrationcouldbeinefficientanddisadvantageoustocustomers"because,forexample,"integrationgenerallyincreasesthesizeoftheoperatingsystem,andtherefore,thesizeofthehardwarerequiredtoruniteffectively.
Inaddition,itmayslowtheuseofotherapplications,andmayprovidefunctionwhichcertaincustomersdonotwant.
"SoyringDir.
25.
v.
JamesGoslingtestifiedthat,"inWindows98,.
.
.
Microsoftapparentlyloadssomebrowser-relatedfilesintomemoryevenwhentheusermayneverneedthatfunctionality.
.
.
.
Inessence,Microsoftsimplyshiftsthetimerequiredtoloadthebrowsercodefromwhenitisfirstneededbytheusertoeverytimethecomputerbootsup.
"GoslingDir.
37.
vi.
Feltentestifiedthat,"asmorememorygetsusedup,thesystemstartshavingtodocomplicatedthingstokeepalltheprogramsrunning,andsouseofmorememorygenerallytranslatesintoreducedperformance.
"Felten,6/10/99pm,at18:16-20.
vii.
InanemailfromJonathanRobertstoBillGatesandothersinJuly1997,Robertspointsoutthata16MBNavigatoruser"willhaveamuchslowerexperiencewith98than95,"because"iftheyaccesshelporanHTMLpagewhileinExplorerorinMyComputertheywillbeloadingtheIEHTMLrenderingengineandsignificantlyincreasingtheworkingset.
"GX725.
viii.
InDecember1996,DavidColeandhisInternetExplorerdevelopmentteamdiscussed"decoupling"IE4fromtheWindowsshell,inpartbecause"iftheuserinstallsthenewshell,theywillhavesomethingstolearnandpayaperformanceprice.
Bycouplingthesetogether,Ithinktheoverallefforthassuffered.
We'vegotacompromisednewshelldesignthattriestobetooWindows95shellcompatibleinmyview.
Wedon'thaveHTMLonthedesktopbecauseweareworriedaboutperformance.
Butevenincompatibilitymode,performancewilldegradeandtherewillbedifferencesthatcouldstalladoptionofthebrowserplatform.
"GX46.
ix.
ProfessorFeltenalsotestified:"Therearetwocoststhatcomefromloadingunnecessarycodeintomemory.
Firstofall,ittakestimetoreadthatcodeoffthedisk,andthatmeansthattheresponsetimeofsomeoperationisslowerbecauseyouspendextratimeloadingthisdataintomemory.
Also,theunwantedcodetakesupspaceinmemory,andmemoryspaceisalimitedresource.
Somethingelsemayhavetoget323movedoutofmemoryorsomethingelsemaynotbeabletoworkbecausethesystemhasrunoutofmemory.
TheuserultimatelymightbeforcedtorunoutandbuymorememoryorupgradetheirPCinordertogetenoughmemorytoloadedtheunwantedcodealongwiththecodetheyactuallywant.
"Felten,12/14/98pm,at57:10-22.
x.
AOL'sBarrySchulertestifiedthatSchulerDep.
,5/5/99,at136:21-137:6(DX2810A)(sealed).
170.
3.
Unusedsoftwarecanalsoincreaseconsumerconfusionandsupportcostsbyneedlesslyincreasingthecomplexityoftheuserinterface.
i.
ProfessorFeltentestifiedthat"ingeneralifyouknowthattheuserdoesnotwantsomething,itcanonlybeinefficienttoforcethemtotakeit.
.
.
.
IalsowanttopointoutthatwhenItalkaboutefficiency,asacomputerscientist,I'musingitinthebroadestsense.
Thatis,I'mincluding--I'mincludinginefficienciesthatdevelop,forexample,becauseofuserconfusionbecauseofunwantedbehavior.
Mr.
Weadocktalkedaboutthecostinsupportcallsandlostproductivitybecauseofthosecases,andthosealsoapplyinthecaseofWindows98andIE.
"Felten,12/14/98pm,at11:15-12:9.
ii.
Weadocktestifiedthatitis"generallyacceptedpracticeamongITmanagersinbusinesseslargeandsmalltoputtheleastamountofsoftwareonacomputerthatwilldowhattheirusersneedtodo.
Youjustsaveallkindsofcoststhatway,allthewayfromresourceusetosupportandtraining.
"Weadock,11/17/98am,at41:17-42:16.
iii.
Weadocktestifiedthatcomminglingoperatingsystemandapplicationcodecancreateuserconfusion.
Forexample,Microsoft'sfusionofWindowsExplorerandInternetExplorermayconfuseconsumersastowhethertheyareviewinglocalorremotedata.
WeadockDir.
32c.
324(2)Thehard-codingofInternetExplorermakesuserslesslikelytouseNetscapewithWindows98170.
4.
Microsoft'sdecisiontofrustratetheuser'schoiceofdefaultbrowserinWindows98byforcingtheuseofInternetExplorerincertainsituationsdecreasesthevalueofotherbrowserstoendusers.
i.
ProfessorFeltentestifiedthatausercaninstallNetscapeNavigatoronWindows98,"butthereisaproblemusingit.
AndProfessorFarberdescribedthistheotherday.
HetalkedaboutwhathappenedwhenhetriedtoinstallNavigatoronhisWindows98PC.
AndInternetExplorerkeptpoppingupinhisface,asheputit.
That'sthesortofphenomenonthatIrefertoinmytestimonyashardcodingaccesstoInternetExplorer4.
AndsothathardcodingdoespreventtheuserfromusingNetscapeNavigatorinallthecaseswheretheywouldliketo.
"Felten,12/14/98am,at27:8-19;seealsoFelten12/14/98am,at29:6-17("therearealsosituationswhereIEpopsupwhenauserdoesnotwantit");Felten,12/14/98am,at44:12-17(although"Windows98givestheusermorechoicesthanWindows95did,.
.
.
there'soneareainwhichitgivestheuserlesschoice,whichiswebbrowsing").
ii.
Dr.
Warren-BoultontestifiedthathepersonallyboughtaWindows98machine,but"neverhadtheintentionofusingIE,andIwoundupinstallingWindowsNavigator.
"Nonetheless,"IEkeepspoppingbackupagain.
Itis,perhaps,peoplemoretechnicallyadeptwouldbeabletoavoidit,butIcan'tseemtoavoidrunningintoIE.
"Warren-Boulton,11/24/98pm,at30:22-31:4.
iii.
DeanSchmalenseeconcededthat,iftheintegrationofasoftwareproductintotheoperatingsystemdegradestheperformanceofadifferentproductormakesitlessconvenientforuserstousethatproduct,thatwouldbeaharmtoconsumers.
Schmalensee,1/19/99am,at39:21-40:3.
170.
5.
Microsoft's"hard-coding"ofInternetExplorertoWindows98isparticularlyburdensomefororganizationsthatwanttostandardizeonanon-Microsoftbrowser.
i.
Whenaskedwhetherorganizationsremain"freetostandardizeonNetscapeNavigatoriftheywant,"Weadockanswered:"NotinthecaseofWindows98.
TheyarenotfreetofullystandardizeonNavigatorbecause325Windows98enforcescertainuseractionstobringupInternetExplorer,soIwouldsayno,theywerecompletelyfreetostandardizeonaproductiftheoperatingsystemimposesrequirementstouseanalternativenonpreferredproductinsomecases.
"Weadock,11/17/98pm,at7:17-8:2.
ii.
WhenaskedhowthefactthatWindows98comeswithInternetExploreraffectsacorporationthathasstandardizedonNavigator,JohnKiesofPackardBell/NECstatedthat"itwouldrequiretheendusertouninstallInternetExplorer4.
0orinstallnexttoitNetscapeCommunicator.
Andthis--thentheywouldhavetwobrowsersonit,wheremostcompanieswouldjustprefertosupportonebrowserand,onceagain,gobackintothetrainingissue.
Andmostcorporationswouldnot--wouldprefernottohaveanyitemsintheuserinterfacethatthey'renotreadytosupport.
"KiesDep.
(played11/17/98am),at72:8-19;seealsoKiesDep.
(played11/17/98am),at72:8-73:7.
iii.
Inapresentationentitled"WhyInternetExplorer5.
0"ScottVeseyofBoeingwrote,"Wedonothaveachoice.
InternetExplorerwillbeinstalledasacomponentofournextgenerationdesktopoperatingsystem.
Theextenttowhichwemightbeabletodisengageitneedstobedetermined.
OperatingSystemintegration.
MicrosoftisunlikelytobackawayfromtheircommitmenttointegratingtheWebbrowserintotheoperatingsystem.
"Under"Risks,"Veseynoted,"TwobrowsersonallWintelmahcines.
IEcomesintheoperatingsystemandisavailableforuseasabrowser.
Netscapewouldhavetobeseparatelyinstalled.
Notabletofullydisengagebrowser.
MaybeabletoremoveIEiconfromthedesktop(tobedetermined).
WindowsExplorercanstillbeusedtoaccessinternetprotocols:(ex.
httpandftp).
DifficulttoenforceNetscapeas'TheBrowser'ontheWintelenvironment.
"GX638,atTBC000412.
iv.
A"Win98Browserchoicematrix"preparedbyVeseyincludedthefollowingoption(amongothers):"AcceptWin98asiswithfullInternetExplorerintegration.
UseIEasthe'Standard'browser.
InstallNetscapeCommunicatoras'Alternate'browser.
"Under"Impact/Risk"ofthisoption,Veseywrote"PossibleDLLandregistrycontentionissues.
Userconfusionaboutwhatbrowsershouldbeused.
Developerswilldevelopsitesthatrequireoneortheotherbrowserrequiringuserstoswitchbrowserdependingonwhatsiteisbeingaccessed.
"Anotheroptionpresentedis"RemoveInternetExplorerDesktopicon,disablebrowserfunctionforWebserveddocuments"and"InstallNetscapeCommunicatoras'Standard'browser.
"TheImpact/Riskofthisoptionis"TheextenttowhichitwillbepossibletodisableInternetExplorer.
"GX633.
326v.
Inthatsamedocument,Veseysuggeststhat:"InstallingNetscapeasanalternativebrowsermayleadtouserconfusionaboutwhatbrowsertouse.
Somesitesmayrequireaspecificbrowser.
Wehavebeenworkingtominimizethispossibilitybutthisriskstillexists.
---RemovingExplorer(ordisablingthewebaccesscapabilities)willlikelyprovetobeimpracticalorimpossible.
Thiswillleaveuswith3likelyalternatives:Installbothbrowser,allowusertoselectwhichbrowsertouse.
--InstallonlyExplorer,requireallwebsitestobecompletelyneutral.
--RemoveExplorer(ordisableallwebaccesscapabilities)andinstallCommunicatorforwebaccess.
"GX633.
vi.
AninternalBoeingdocumentdescribingBoeing's"BrowserDecisionHistory"discussesplanningfor1999,andnotes,"InternetExplorerv5willbesodeeplyembeddedinNTW5,Office2000,&Outlook2000thatwewillnotbeabletoextricateit--ThereforebothNetscapeandInternetExplorerbrowserswillbeinstalledonWindowsdesktops--Netscapewillcontinuetobethestandardwebbrowser,nextstepwillbetodeterminehowtoconstrainuseofInternetExplorerasthebrowser--Continuetoevaluate1999browserdirection.
"GX631.
vii.
AninternalBoeingpresentationentitled"Enterprise-wideWebBrowsersfortheDesktop"byScottVeseyinMarch1998,stated:"Installingbothwebbrowsersmay:Confuseusersaboutwhichbrowsertouse.
Increaseendusersupportcosts.
"GX635,at11;seealsoGX637.
170.
6.
Becauseofthesecosts,manyfirmswillhavetochoosebetweenapreferrednon-MicrosoftbrowserlikeNetscapeandWindows98.
170.
6.
1.
ManycustomersfeelstrongpressuretouseWindows98astheiroperatingsystemforvariousreasons,includingadesiretoremaincompatiblewithotherusersandadesiretousenewhardwareorperipheralsthatWindows95doesnotsupport.
ManyofthesecustomersarelikelytoforgoinstallingNetscapeNavigator(orotherbrowsers)ontheircomputers.
i.
Weadocktestifiedthat"manycustomers(dependingontheirsizeorprofile)feelstrongpressuretouseWindows98forvariousreasons,includingthefollowing:(a)Theorganization'scustomers,suppliers,or327clientsarelikelytouseit,andbusinessreasonsexisttousethesamesoftwarethatcustomers,suppliers,orclientsuse.
(b)Windows98bringsnewtechnologicalbenefits,suchasamoreefficientfilesystem;supportfornewtypesofhardware,suchashigh-capacityopticaldisks;supportfornewhardwaredevices,suchasprintersandnetworkcards;bettercontrolofpower-savingfeaturesonbothdesktopandportablePCs;Year2000compliance;andanumberofnewandenhancedhousekeepingutilitiesthatMicrosoftclaims(andIconcur)canreducesupportcosts.
c)Theorganizationreliesonhardwarethatisbeingdiscontinuedbythemanufacturerandreplacedbyhardwarethatdoesn'tworkwithWindows95butthatdoesworkwithWindows98.
.
.
.
Atsomepointinthelifecycleofanoutdatedoperatingsystem,computerhardwaremanufacturerstendnottodevoteresourcestowardsmakingtheirnewestproductscompatiblewiththatoutdatedoperatingsystem.
"WeadockDir.
42.
ii.
Boeing'sScottVeseytestifiedthat,"inthelongterm,"BoeingcouldnotcontinuetouseWindows95butwouldeventually"havetomoveforwardinanewoperatingsystemversionashardwareisnotsupportedbyWindows95.
"Vesey,1/13/99,at280:13-16.
iii.
Veseywrotethat"ThemainreasonsformovingtoInternetExplorer5.
0inQ2/3of1999ofthe18-monthtacticalplanare:Wedonothaveachoice.
.
.
.
TheintegrationbetweenInternetExplorerandthedesktopoperatingsystemcannotbefullydisabled.
.
.
.
OuronlychoiceiswhetherwewillinstalltwobrowsersorjustinstallInternetExplorer.
"GX637(emphasisinoriginal).
170.
6.
2.
AnumberofcorporationshavechoseninsteadthecostlyoptionofforgoingWindows98andthenon-browserrelatedbenefitsitprovidesinordertousethebrowseroftheirchoiceandhaverevertedtotheoriginalretailreleaseofWindows95(whichdoesnotincludeInternetExplorer).
i.
GlennWeadocktestifiedthat"somecompaniesareresisting,orelectingnottouse,Windows98largelyorinpartbecauseitwouldforcethemtohaveatwo-browserdesktop(forexample,Chrysler,wheretheManagerofPerformanceandCostManagementstatedthattwobrowserswouldincreasesupportcosts).
"WeadockDir.
41.
ii.
WeadocktestifiedthatmanyorganizationshavegonebacktotheretailversionofWindows95,eventhoughdoingsoentailsvariouscosts,328because"theyhavethegreatestcontroloverwhatapplicationstheycaninstallontoit,becauseitisthecleanestversionofWindows95.
Itdoesn'tcontainsoftwarethattheydon'twant.
And,inparticular,itdoesn'tcontainInternetExplorer,whichtheymaynotwant.
"Weadock,11/17/98am,at62:12-20;seealsoWeadock,11/17/98am,at27:9-20("BoeingwentbacktotheoriginalretailversionofWindows95")iii.
AsurveyconductedbyCompaqinFebruary1998of283PCdecisionmakersatUScompaniesfoundthat"About80%ofcompanieswipeorreformattheharddrivesofnewdesktops.
.
.
.
Theoperatingsystemre-installedmostoftenareOSR2andtheretailversionofWindows95.
LargebusinessesleanmoretowardtheretailversionofWindows95.
"GX1242,at34.
d.
Microsoft'sconducthascausedothersignificantinefficienciesandconsumerharm(1)Microsoft'scomminglingofthebrowserandoperatingsystemreducessystemperformance171.
Microsoft'scomminglingofthecodethatsuppliesbrowsingandotheroperatingsystemfunctionalityreducessystemperformanceforcustomersthatdonotdesiretobrowsethewebusingInternetExplorer.
i.
SeesupraPartV.
B.
4.
c(1);169.
ii.
ProfessorFeltentestifiedthatWindows98usesapproximately20%lessdynamicmemoryaftertheprototyperemovalprogramhasremovedInternetExplorerwebbrowsing,measurablyimprovingperformance.
SeesupraPartV.
B.
3.
b(2);154.
2;seealsoFelten,12/14/98pm,at56:3-13.
iii.
Inane-mailfromJonathanRobertstoBillGatesandothersinJuly1997,Robertsstates"EvenwiththeoptiontoturnoffthedefaultloadingofActiveDesktop,Windows98isinescapablymostappealingtotheInternetExploreruser.
Ofcourse,theplanisWin98withWebintegrationconvertsahugebase,butadiehard16MBNavuserishardtomove.
IftheyaccesshelporanHTMLpagewhileinExplorerorinMyComputertheywillbeloadingtheIEHTMLrenderingengineandsignificantlyincreasingtheworkingset.
Thismeans,thatinmanyscenarios,the16MBnavuserwillhaveamuchslowerexperiencewith98than95.
"GX725.
329iv.
PaulMaritzconcededthat"incertaincircumstances,applicationsingeneral,notjustNetscape'sbrowser,canrunsloweronWindows98versus95inmemory-constrainedsituations;inotherwords,runningamachinewithsmalleramountsofmemory.
"Maritz,1/27/99pm,at4:7-16;seealsoMaritz,1/27/99pm,4:17-23.
v.
ChrisJones'snotesfromaNovember1997offsitemeetingamongInternetExplorerprojectteammembersreportthat"Performanceoverall,inparticularwithintegratedshell,isaproblem.
TheIE4browser,whilefast,issimplytoobigforcustomerstoinstallandadopt,bothintermsofmemoryusage(workingset),andalsointermsofdiskfootprint(installsize).
Theintegratedshelladdsadditionalrequirements,andcustomersarenotdeployingon32MBNTsystems.
"GX364,atMS7004719.
vi.
GatewayexpressedconcerntoMicrosoftinApril1998that"theinstallationofthefullMSproduct(includingchannels)resultsinamuchslowersystemperformanceifthecustomerchoosesanalternatebrowserafterfullinstallationonIE4.
"GX320.
vii.
Weadocktestifiedthatif"welookatWindows98,weseeasituationwhereInternetExplorercan'tberemoved,ittakesupmemoryresources;ittakesupdiskspace.
Ifacompanycan'tremovethatandthenobtains--touseyourword--NetscapeNavigator,becausethereissomuchRAManddiskandprocessoroverheadalreadyassociatedwiththenonremovableInternetExplorerinWindows98,theycan'tobtainNavigatorandputittoworkontheirsystemwithoutasubstantialperformancepenalty,asIthinkoneoftheMicrosoftemployeesinoneofthee-mailsthatI'veseenexpressedconcernabout.
"Weadock,11/16/98am,at63:1-11.
viii.
ProfessorFarbertestifiedthat"combiningapplicationswithanoperatingsystemintoasingleproductavailablewithallfunctionscombinedimposestechnicalinefficienciesforOEMS,othersoftwaredevelopersandretailendusers,includingredundancy,performancedegradationofunusedsoftwareandincreasedriskof'bugs;'and.
.
.
anyfunctionprovidedbyanoperatingsystem(asdistinctfromhigherlevelfiles)thatdoesnotsatisfythecriteriaofsimplicity,generalapplicablitiyandaccessibilityreducestheefficiencyoftheoperatingsystemenvironmentandtheapplicationsthatuseit.
"FarberDir.
27.
(2)Microsoft'scomminglingofthebrowserandoperatingsystemcausesundesirablesystemcomplexity,incompatibilitiesandsecurityconcerns172.
Microsoft'scomminglingofthebrowserandoperatingsystemalsointroduces330undesirablesystemcomplexityandincompatibilitieswithothersoftware.
i.
ANovember1997internalMicrosoftmemofromBrianHallquotesparticipantsfromInternetExploreruserfocusgroupsassaying:"whydoweneedtoseelocalfilesthroughourwebbrowserIt'slikeawholeotherversionofwindowsexplorerinawebbrowser.
Needoneortheother,don'tneedboth.
"GX218.
ii.
OneoftherecommendationsofanISPfocusgroupconsultedbyMicrosoftwas:"TurnofftheActiveDesktop.
Didn'tlikethatabrowserintroducedUIchanges--theydidn'twanttobeinthebusinessoftrainingpoepl[sic]howtousetheUIwhenitisreallyapartoftheOS.
"GX375.
iii.
Weadocktestifiedthat:"Userconfusioncanresultfromcombiningapplicationcodeandoperatingsystemcode,forexample,asMicrosofthasdonewithWindows98andthe"singleExplorer.
"WeadockDir32c.
"Anapplicationthatmodifiesoperatingsystemfilescouldcreate(and,inthecaseofInternetExplorer,hasbeendocumentedinsomecasestocreate)conflictswithotherapplicationsandwithcompany-developedapplications.
"WeadockDir.
32b;seealsoWeadock11/17/98am,37:24-38:13.
iv.
ProfessorFeltentestifiedthat"ingeneralifyouknowthattheuserdoesnotwantsomething,itcanonlybeinefficienttoforcethemtotakeit.
AndyouwillnotethatwithrespecttoInternetExplorerinWindows98,wearetalkingaboutforcingtheusertoinstallsoftwarethattheydon'twantontotheirharddisk.
WhentheybootWindows,thatsoftwaretheydon'twantisloadedintothememory.
AndasProfessorFarberexplained,insomecasesthatsoftwareisevenrun,andInternetExplorerpopsupeventhoughtheuserdoesn'twantit.
It'scertainlyinefficienttodothat.
IalsowanttopointoutthatwhenItalkaboutefficiency,asacomputerscientist,I'musingitinthebroadestsense.
Thatis,I'mincluding--I'mincludinginefficienciesthatdevelop,forexample,becauseofuserconfusionbecauseofunwantedbehavior.
Mr.
Weadocktalkedaboutthecostinsupportcallsandlostproductivitybecauseofthosecases,andthosealsoapplyinthecaseofWindows98andIE.
"Felten,12/14/98pm,at11:15-12:9.
v.
ProfessorFarbertestifiedthat"combiningapplicationswithanoperatingsystemintoasingleproductavailablewithallfunctionscombinedimposestechnicalinefficienciesforOEMS,othersoftwaredevelopersandretailendusers,includingredundancy,performancedegradationofunusedsoftwareandincreasedriskof'bugs';and.
.
.
anyfunctionprovidedbyanoperatingsystem(asdistinctfromhigherlevelfiles)thatdoesnotsatisfythecriteriaofsimplicity,generalapplicablitiyandaccessibilityreducestheefficiencyoftheoperatingsystemenvironmentandtheapplicationsthatuseit.
"FarberDir.
27.
331vi.
InaBoeingplanningdocumentwritteninJuly1998ondeploymentof5.
0levelbrowsersstartingin1999,ScottVeseynotedthefollowingaboutIE4:"TheproblemforInternetExplorer4.
0isthatitmodifiedtheWindows95operatingsystemDLL's.
Severalconflictswereidentifiedwithcommercialsoftwarepackages.
Allknownconflictshavebeenresolved,etherbythesoftwarevendororbyaMicrosoftpatch.
However,concernexistsforconflicswithBoeingcustomwrittenapplications.
Duetotheseconcernsandbecausetherewasnotacompellingtecnologyreasontochangethestandardwebbrowservendor,theNetscapebrowserwasselectedasthebrowserstandard.
"GX637;seealsoGX632;GX634;GX635;VeseyDep.
(played11/17/98am),at90:6-14.
vii.
ProfessorFeltentestifiedthat"givingusersorOEMsthechoiceofwhatWebbrowsingsoftware,ifany,tohaveontheirsystemsistechnicallyefficient.
AlthoughsomeusersorOEMsmaybenefitfrombundlingtogetherseparatesoftwareproductsdesiredbythoseusersorOEMs,significantinefficienciesmayalsoariseforothers.
ForcingsomeusersorOEMstotakesoftwaretheydonotwantisinefficient,sincetheunwantedsoftwareneedlesslyusesresourcessuchasdiskspaceandmemory,andincreasesthecomplexityoftheuserinterfacebyclutteringitwithunwantedicons,menuitems,andprograms.
HadMicrosoftoriginallydesignedaversionofWindows98withoutWebbrowsing,thisversionwouldhavebeensignificantlysmallerthantheversionMicrosoftactuallyreleased.
"FeltenDir.
67.
173.
Thebundlingofabrowserorotherapplicationsoftwarewithanoperatingsystemincreasesthevulnerabilityofthesystemtovirusesorunauthorizedusage.
i.
ThefollowingcolloquytookplacebetweentheCourtandProfessorFelten:"THECOURT:.
.
.
Arethereanysecurityissuesinvolvedinachoiceofabrowserorwhethertogetabrowseratall.
.
.
Itseemsself-evidenttome,butmaybeit'snot,thatthepresenceofabrowserincreasestherisksofpenetrationbyavirusorsomethinglikethat.
THEWITNESS:Certainly.
Ifyouareinthepositionof,say,acomputersystemsadministratorinalargeorganizationandyou'reconcernedthatyouless-trainedusersmightaccidentallyintroduceavirusorsomethinglikethat--youmightwellchoosetonothavebrowsersonyourusers'computersinordertopreventthatmeansofspreadofvirus.
"Felten,6/10/99am,at39:18-40:7.
ii.
Weadocktestified:"Itmaybecomemoredifficulttoenforcesecuritywhenanoperatingsystemintegratesapplicationsoftware.
"Forexample,"[s]ecuringthesystemagainstusersrunningprogramsthatmanagementdoesn'twantthemtorunbecomesmoredifficultasapplicationsoftwareisfoldedintotheoperatingsystem.
"WeadockDir.
32e.
332e.
DeanSchmalenseee'stestimonythatMicrosoft'sconductdidnotresultinsignificantcompetitiveandconsumerharmisunreliable174.
Microsoft'stestimonythatconsumersbenefittedfromitstyingarrangementandassociatedcontractualrestrictions(E.
g.
,Schmalensee,6/21/99am,at10:5-11:5,36:18-37:11),restsonfaultyassumptions.
174.
1.
First,DeanSchmalenseeconcededthathedidnotinvestigatewhetherInternetExplorercouldberemovedfromWindows98orwhyMicrosoftmadeitnon-removable.
i.
WhenaskedwhetherheinvestigatedwhatfunctionsofWindows98wereremovable,Schmalenseeanswered,"Absolutelynot.
Itseemedtomethatthekeyissuewaswhetherusershadachoiceastowhichsoftwaretheyemployed,andwhetherithadtoberemovedorjustnotusedseemedtomecompletelyimmaterial.
"Schmalensee,1/20/99am,at5:24-6:5;seealsoSchmalensee,1/20/99am,at10:5-9(same).
ii.
Whenaskedwhetherhelookedat"anyinternalMicrosoftdocumentstodeterminewhyMicrosoftdecidednottomakeInternetExplorerremovablefromWindows98,"Schmalenseesaid:"No.
Ididnot.
Iinquiredwhattheydid,not--aswe'vesaidseveraltimes,notwhattheysaidaboutwhattheyweredoing.
"Schmalensee,1/20/99am,at14:19-24.
174.
2.
Second,DeanSchmalenseealsoconcededthathedidnotinvestigatetheconsequencesofcomminglingsoftwarecodeinthesamefiles.
i.
Schmalenseeconcededthathehasno"quantitativeanswer"tothequestionofhowmuchsharedcodethereisbetweenWindows95andInternetExplorer,andWindows98andInternetExplorer.
Schmalensee,1/19/99pm,at31:4-8.
SeegenerallySchmalensee,1/19/99pm,at32:10-18(similarlyconcedingthathedoesnotknowhowmanyDLLscontainedsharedcodeinWindows95andWindows98).
ii.
WhenaskedwhatpercentageoftheInternetExplorercodeinWindows98issharedbyotheroperatingsystemfunctions,Schmalenseetestifiedthat"Idon'thavethatbreakdown.
Idon'tknow.
"Schmalensee,1/20/99am,at11:11-14;seealsoSchmalensee,1/20/99am,at12:9-14("Ican'tanswer333thatquestion.
AndIdidn'tinvestigateit,becauseit'snotimportantforthereasonsI'vegivenyouseveraltimes.
").
174.
3.
Third,DeanSchmalenseeimplicitlyassumes(SchmalenseeDir.
232),contrarytotheevidence,thatausercanconsistentlyenforcehisorherchoiceofdefaultbrowserinWindows98.
i.
SeesupraPartV.
B.
2.
e(2);147.
5.
174.
4.
Fourth,DeanSchmalensee'sandotherMicrosoftwitnesses'contentionthatMicrosofthasmerelyofferedanadditionalchoiceofbrowsers(Schmalensee,1/21/99pm,at37:24-38:8,Schmalensee,6/21/99am,at37:4-7)iswrong.
WhilethedevelopmentofInternetExploreritselfprovidedadditionaloptionstousers,itstyingofthebrowsertotheoperatingsystemdenieduserstheoptionofforgoingInternetExplorerandincreasedtheircostsofusingotherbrowsers.
i.
SeesupraPartV.
B.
4;166-175.