Broadband On Trial

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But Case has that covered too. In the same week as his Microsoft deposition, the AOL boss took time out to appear on Capitol Hill to make an impassioned argument for government regulation in the cable-Internet industry. His pitch: the FCC needs to make sure that the little guys--which in his book include AOL--don't suffer if proprietorial cable services like AT&T;'s At Home or Time Warner's RoadRunner end up owning the online gateway. "It's a battle," Case said, "between good and evil." The FCC isn't entirely convinced, but it has agreed to look into the matter.

Microsoft execs will no doubt see a darker purpose in such a probe, just as they cried conspiracy when AOL bought Netscape while both were witnesses for the prosecution. Microsoft is convinced that AOL is hiding under the government's antitrust skirts, and there's little Case can do that won't be viewed in Redmond through that prism. When AOL bought Netscape, why didn't it change its default browser from Microsoft's to Netscape's? So as not to weaken the antitrust case, says Microsoft. "When the trial is over," predicts an exec, "they're going to switch."

That may be a little too paranoid even for Gates. But when it comes to the broadband Internet, the world's richest man has reason to worry. After all, high-speed Web access and the proliferation of Web-based applications could one day make his operating system obsolete. That's why when the trial resumes, the threat of AOL Everywhere may be Microsoft's best defense.