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http://detnews.com/1999/technology/9903/31/03310159.htm

Microsoft worried about rival Caldera product, documents show
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By Vivien Lou Chen and James Rowley / Bloomberg News

SALT LAKE CITY, Utah -- Microsoft Corp. Chairman Bill Gates expressed
concern in a 1989 confidential e-mail that competition was undermining
the software giant's ability to set prices for its DOS operating
system.
"Our DOS gold mine is shrinking and our costs are soaring -- primarily
due to low prices, IBM share and DR-DOS," a competing product, Gates
wrote to Microsoft executive Steve Ballmer, who later became the
company's president. "I believe people underestimate the impact DR-DOS
has had on us in terms of pricing."
The contents of Gates' 10-year-old private e-mail were made public
Tuesday, as part of Caldera Inc.'s private $1.6 billion antitrust suit
against Microsoft. Orem, Utah-based Caldera accuses the world's
largest software maker of trying to eliminate competition posed by the
DR-DOS operating system, which it had acquired.
Caldera on Friday filed a motion urging a federal court in Utah to
unseal several confidential Microsoft documents out of hundreds of
thousands collected for the case, which is set to go to trial in
January.
Caldera is citing Gates' memo and other Microsoft documents to support
its claim that the company engaged in illegal predatory business
practices.
"This is just a very small snippet of the evidence we have," Bryan
Sparks, Caldera's chief executive, said. "We've literally gone through
millions of documents and this is evidence of the things we allege
Microsoft does to inhibit competition to make sure nobody else gets a
foothold in the marketplace."
In one 1990 internal report, for instance, Microsoft discussed plans
to "block out" DR-DOS by pushing one computer equipment manufacturer,
Hyundai Electronics Inc., to sign a license that required it to pay a
license fee for every machine they shipped, regardless of whether the
computers ran on Microsoft products.
The practice "acted as a tax for any other viable alternative" to DOS,
Sparks said.
Microsoft, though, claims all of the documents cited in Caldera's
motion were reviewed during the early 1990s by government antitrust
regulators who took no action against the company.
"It appears to be an attempt by Caldera to sensationalize the case by
taking a handful of
documents out of millions provided by Microsoft out context,"
Microsoft spokesman Tom Pilla said. Gates' e-mail, for instance,
directly contradicts Caldera's assertion that Microsoft monopolized
the market for computer-operating systems, he said.

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