Microsoft trial lumbers back to life - 01 Dec 1998

Microsoft's antitrust trial sprung back to life on Monday as the software giant continued its cross-examination of economist Frederick Warren-Boulton, a government witness that believes Microsoft is abusing its monopoly. The government also unveiled an interesting Microsoft internal document showing that the company raised prices over 140% between 1990 and 1996.

"The government is lying with statistics," said Microsoft spokesman Mark Murray, referring to the government's recent allegations.

According to the internal document, Microsoft increased the price it charged hardware makers for its operating system from $19.03 to $49.40 over a five year period, increasing its percentage of total system cost from .5% to 2.5%. Microsoft executive Joachim Kempin theorized that Windows would soon become the most expensive component in the low-end computers that are now selling for about $500.

Warren-Boulton said that Microsoft was able to command such huge price increases because of its monopoly in computer operating systems, but Microsoft maintains that the price of Windows hasn't risen at all: Rather, newer versions such as Windows 95 and Windows 98 offer far more value than the old Windows 3.1/DOS combo

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