Exec says Microsoft accepted inclusion of Netscape browser on Windows desktop.

A Compaq Computer Corp. executive testified that Microsoft Corp. did not object to the inclusion of a rival browser on the opening screen of Compaq_s desktop computers, refuting a key government charge that the software giant_s contracts with PC makers are exclusionary. The presence of J. Rose, Compaq (CPQ) senior vice president and general manager of the company_s enterprise computing group, is significant for both sides of the federal antitrust trial in Washington because he is the only representative from a computer maker. Among the charges levied by the Justice Department and 19 states is that Microsoft_s contracts with PC makers is unfair to Netscape Communications Corp. (NSCP). While Microsoft offered its Internet Explorer Web browser for free as part of the Windows operating system, Netscape was charging PC makers a licensing fee for its competing Navigator product. The government cites this as just one example of how Microsoft has attempted to extend its Windows monopoly into other segments of the computer industry. According to Rose_s written direct testimony, which Microsoft released Tuesday, Compaq removed the Internet Explorer and Microsoft Network (MSN) icons from the opening screen of the Presario line of PCs after signing a deal with America Online Inc. in early 1996. After Microsoft informed Compaq that the removal of its icons was a violation of Compaq_s license agreement, the computer maker returned the icons to the Windows desktop. The government claims such an episode is an example of how Microsoft uses its monopoly power to bully PC makers into giving its software preferential placement on a compute_s opening screen. "Microsoft did not object to Compaq_s inclusion of the Netscape Navigator icon on the Presario desktop," Rose said. "Microsoft in no way limits Compaq in its license agreements… from including Netscape_s icon."