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HATCH 2, GATES 1

So how well did Bill Gates do on Capitol Hill? On balance, not great. To be sure, Microsoft Corp.'s chairman held up under fire--making his points about the healthy state of innovation and competition in software. But the impression he left is that Microsoft has enough market power in its industry to justify further investigation by federal trustbusters.

Again and again, Utah Senator Orrin G. Hatch hammered away with two questions: Do you deny that Windows is a monopoly? Do you prevent content providers from promoting your competitors' browsers? Despite carefully crafted answers, Hatch drove home his point. Gates acknowledged that just days before the hearing, Microsoft had dropped contract language that prevented 40 leading Internet service providers from promoting rival browsers. And Gates's hand-picked witness, Michael S. Dell, was tripped up when Ohio Senator Mike DeWine told him his staff couldn't order a Netscape browser from Dell because of its Microsoft contract.

The Senate Judiciary Committee has no plans to seek changes in antitrust laws to make life more difficult for Gates. But Hatch's hearing can only strengthen the Justice Dept.'s resolve to prosecute Microsoft under existing laws. The score so far: Hatch, 2; Gates, 1. Stay tuned.

By Steve Hamm in San Francisco


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