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twitterGateway testifies
Tuesday, March 26, 2002 | 9:50 a.m.
WASHINGTON -- A computer manufacturer says Microsoft keeps a stranglehold on computer makers through a stick and carrot contract system and won't let consumers buy computers without also paying for Microsoft's Windows operating system.
Gateway executive Anthony Fama, a witness for the nine states asking for strong penalties against Microsoft for antitrust violations, said Microsoft's "Market Development Program," billed as voluntary, is used to keep computer manufacturers in line.
Fama on Monday told U.S. District Judge Colleen Kollar-Kotelly that Microsoft keeps Gateway and others from installing competing software on its computers by offering discounts on Windows royalties.
For example, if a Gateway computer starts within a specified amount of time -- which is not usually possible if Gateway installs non-Microsoft programs -- the computer maker earns the discount.
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