Memo – web browser distribution


Previous page Web browser distribution As noted above, all of the government's claims are premised on the theory that Microsoft "foreclosed" Netscape from distributing its Web browsing software to consumers. Since competition on the merits can have the effect of depriving competitors of certain distribution outlets, courts require proof of a great deal of "foreclosure" before they will consider such a claim. In this case, Judge Jackson has already ruled that the government "must establish foreclosure of greater than 40 per cent prevail on their exclusive dealing claims". But the following facts -— all undisputed by the government -— show that Netscape has enjoyed great distribution for Navigator. In fact, as shown below, the evidence at trial shows that every distribution channel remains open to Netscape. * Jim Barksdale admitted on cross-examination that Navigator is "ubiquitous". * Jim Barksdale admitted that under Netscape's "Unlimited Distribution" program the company would distribute approximately 159 million copies of Navigator -— more than the "total number of people connected to the Web". * Jim Barksdale admitted that are currently "somewhere between 40 million and 70 million" users of Netscape Navigator. * Jim Barksdale admitted that more than 26 million copies of Navigator were downloaded off the Internet from January through August 1998. (The government alleges that downloading software is too hard, and thus is not a realistic channel of significant software distribution.) * Microsoft's expert economist, Professor Richard Schmalensee, calculated that the number of Netscape users has more than doubled in less than three years, despite intense competition from Microsoft. Next page

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