Bill Gates Deposition Video Disaster
Incident Summary
On August 27-28, 1998, Bill Gates sat for a 20-hour videotaped deposition as part of the DOJ antitrust case. What should have been routine legal procedure became a public relations catastrophe that shaped the trial's outcome.
The Strategic Miscalculation
Original Strategy
Microsoft's legal team prepared Gates for a transcript-only deposition. The approach:
- Give nothing away
- Challenge every definition
- Never concede obvious points
- Force prosecutors to prove everything
This is reasonable legal strategy when only written transcripts will be seen.
The Reversal
On October 9, 1998, Judge Thomas Penfield Jackson ruled that video clips could be shown in court. Microsoft's strategy imploded instantly.
Key Moments
The "Email" Exchange
Prosecutor Boies: "You wrote this email, correct?" Gates: "I'm not sure what you mean by 'wrote.'"
When played on video, Gates' semantic evasions looked shifty rather than careful.
The "Concern" Admission
Confronted with his own email expressing concern about Netscape, Gates claimed not to understand what "concern" meant in that context. The courtroom reportedly laughed.
Body Language
- Rocking in chair
- Evasive eye contact
- Long pauses before obvious answers
- Visible irritation
Impact Analysis
In the Courtroom
- Judge Jackson repeatedly reacted negatively
- Prosecutor Boies strategically deployed clips throughout trial
- Video excerpts played on evening news nationwide
- Undermined Microsoft's factual credibility on all issues
Public Perception
The richest man in America appearing unable to answer simple questions:
- Damaged Gates' personal reputation
- Reinforced "evil monopolist" narrative
- Made settlement more difficult (prosecutors emboldened)
Inside Microsoft
"The videos were devastating. They made us look like we had something to hide, when really we were just being over-lawyered." — Microsoft executive (anonymous)
Root Cause Analysis
- Legal overpreparation — Lawyers optimized for wrong format
- Client ego — Gates believed he could outsmart prosecutors
- Underestimating opposition — David Boies was a master litigator
- Format blindness — Didn't anticipate video release
Corrective Actions
Immediate
- Changed legal strategy to more cooperative approach
- Limited Gates' direct involvement in legal proceedings
- Hired crisis communications consultants
Long-term
- Brad Smith's "make peace" doctrine emerged partly from this experience
- Microsoft became much more careful about executive legal exposure
- Company invested heavily in government relations
Lessons for Future
- Always prepare for worst-case format — Assume everything is on camera
- Executive depositions are high-risk — Consider alternatives
- Authenticity beats cleverness — Evasion looks terrible on video
- Legal strategy ≠ PR strategy — What wins in court may lose in media
Timeline
| Date | Event |
|---|---|
| Aug 27-28, 1998 | 20-hour deposition recorded |
| Oct 9, 1998 | Judge Jackson allows video in court |
| Oct-Nov 1998 | Boies plays clips throughout trial |
| Nov 5, 1999 | Judge Jackson issues findings: Microsoft is monopoly |
The deposition videos didn't cause Microsoft to lose the antitrust case—the facts did. But they removed any possibility of a sympathetic hearing and likely influenced the severity of Judge Jackson's initial remedy (corporate breakup).