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...Case teaching Levin about instant messaging: the firm delivers 100 million e-mail messages a day--but more than a billion instant messages. Case argues that that's evidence of a whole new medium. Levin listens and suggests that it might be harnessed to support Time Warner products. An AOL techie points out that they can tell when popular programs come on TV by watching the network traffic fall as users log off. "You could use this to tell when it was time to kill a show," the techie suggests. "We can see when Friends' ratings are falling," he adds...
Though Microsoft's lawyers haven't had a chance to make that statement yet, company spokesmen did ballyhoo the AOL-Time Warner deal as proof that the high-tech industries in which Microsoft competes--unfairly, according to the Justice Department--are evolving so quickly and convulsively that to assert Microsoft exerts monopolistic power is "almost comical...
Judge Jackson, your honor, Microsoft would like to enter into the record the exhibit marked "AOL Time Warner...
...sources close to the government reported that Justice is still not amused. Throughout last week, the feds continued to favor the most draconian of penalties for Microsoft: a breakup of the software giant. The AOL-Time Warner merger may have altered the landscape today, the reasoning goes, but the government's antitrust case is built around events that happened in 1994 and 1995. Microsoft's business practices back then--stifling competition and bullying clients when it had market-share dominance--are the issue, not the company's position in today's media world...
Both Gates and Ballmer emphasized Microsoft's identity as a software company, rather than, say, as a content and Internet company like AOL Time Warner. The word content, which figured prominently in Microsoft pronouncements and acquisitions just a few months ago, was barely uttered. "Software is our heritage, and it's our future," said Ballmer. "Our plan is to develop a new software-services platform that will ignite opportunities for partners around the world." Microsoft, by developing what it calls Next Generation Windows Services--software that will shift applications such as databases and word processing from your computer...