The court case in which the software company, Microsoft, stands accused of abuse of monopoly power by the United States federal government and a number of individual American states has been described as a battle between Goliath and Goliath. That a single company can be presumed to be on a par with the most powerful country on earth is illustrative of the growth of information technology and Microsoft's part in that growth.
Throughout the world, 90 per cent of personal computers work on systems designed by Microsoft, whose chief, Mr Bill Gates, is the richest man on earth. Apple Computers, which controls much of the remaining 10 per cent, is tied into a business relationship with Microsoft.
Microsoft has reached the stage of "virtual monopoly" in the world's most lucrative and fastest growing business. To be in a monopoly position is not in itself a breach of US business law. To use that monopoly to disadvantage competitors in the way that Microsoft has been accused of doing, would, however, be considered illegal.
The federal government considers that Microsoft has stepped into illegal territory by "bundling" its Internet browser with its operating systems - Windows 95 and Windows 98. This means that if a customer buys a computer with one of Microsoft's operating systems, an Internet browser is already built in. There is no need for the customer to look at the browser market in which the Netscape corporation produces a rival product.
The US government has claimed that Microsoft has denied the consumer a choice in the Internet browser market. An idea of Microsoft's outlook was given when its lawyer, Mr John Warden, told the court: "Microsoft hasn't denied consumer choice, it is consumer choice." - a sentence which contained more than a hint of monopoly thinking.
The written evidence of Mr Jim Barksdale, chief executive of Netscape Communications, claims that at a meeting with Microsoft executives, a threat was made that "Microsoft would crush Netscape using its operating-system monopoly" if a deal between the two companies was not reached.
In the language used by both sides in this landmark case, there is more than an echo of the talk small boys use against each other when playing at games of war. But in this case the stakes are very high indeed. Despite its battle with the United States, Microsoft has announced first-quarter earnings of $1.68 billion for 1998, up from $663 million in the corresponding period of last year. Revenue rose 26 per cent in the same period to $3.95 billion.
Should Microsoft win, it can look forward to even greater profits. Should it lose, it could face being broken up into a series of smaller and more competitive companies. The direction to be taken by the information technology industry, which has a firm base in this country, will depend on the outcome of this case.