MIT experts go head to head over Microsoft prices

Microsoft's defence against the US government's allegations of anti-competitive behaviour continues today with the ongoing scrutiny of testimony given by two rival economics professors.

Massachusetts Institute of Technology (MIT) professor, Richard Schmalensee, gave a written testimony in favour of Microsoft, which became public on Monday. In it, Schmalansee claimed the company faced competition from industry rivals, software pirates and users reluctant to upgrade. He also claimed Microsoft's continual improvement of products and low pricing meant it could not be classified as a monopoly.

However, Schmalansee's testimony is in direct opposition to evidence given by his colleague and former MIT tutor, Franklin Fisher, who was the Department of Justice's 12th and final witness. Fisher claimed the software giant deliberately "kept prices high to punish its enemies and reward its allies".

However, as questioning started to focus on Microsoft's license price agreements with vendors such as Compaq and Dell, the court was closed to the public. Judge Penfield Jackson agreed with vendors and Microsoft that such sensitive competitive information should be confidential. An edited transcript, with the competitive secrets removed, will be available following the hearing.