The US Justice Department is investigating whether Mr Bill Gates used his dominant market position to block Intel, the world's largest chip maker, from developing Internet software that could have benefited Microsoft's competitors.

Investigators have been taking depositions from Intel chairman Mr Andrew Grove and other executives, and may incorporate the evidence into the government's anti-trust suit against Microsoft. They are focusing on a meeting in August 1995 at which Mr Gates made "vague threats" to Mr Grove about supporting Intel competitors, according to memos cited by the New York Times. The memos allegedly show the companies clashed over Intel's plans for Internet features and a software engine for Java, a Sun Microsystems language.