By David Lawsky

WASHINGTON (Reuters) - Pressure tactics by Microsoft often led computer maker Acer America Corp. to use the software giant's products instead of its competitors', according to a former Acer product manager.

Ricardo Correa said in a series of interviews with Reuters that in making three separate software decisions, Acer opted to put Microsoft applications on its consumer line of computers to satisfy Microsoft.

Acer and Microsoft denied Correa's claims and said the charges come from a disgruntled employee.

But the allegations emerge at a sensitive time as the U.S. government presses ahead with a major antitrust case against Microsoft charging that the giant software company uses strong- arm tactics to dominate the market.

Whether Acer and other computer makers live in a climate of fear that drives them to seek safe relationships with Microsoft is a key focus of the government's probe of Microsoft. The Justice Department declined comment on Correa's allegations.

Few industry insiders have been willing to be quoted publicly on the details of their dealings with Microsoft. But Correa agreed to tell his version of dealing with Microsoft because he was disillusioned with the industry.

``The account manager at Microsoft would say to me, 'Ricardo, we really don't consider you a Microsoft partner just because you buy the operating system,''' adding that Microsoft CEO ``Bill (Gates) is not happy with you.''

Acer America, a San Jose, Calif. member of the Acer Group of Taiwan, makes personal computers for sale to business and consumers, and technology for the industry.

Correa said that Acer planned to place the full-featured Lotus ``Smart Suite'' -- which included a word processor, spreadsheet and other programs -- on its consumer PCs.

But when Microsoft got wind of the change, its top management called Acer's top management in a coordinated campaign, he said.

Correa said that two days before a contract was to be signed with Lotus in early 1997, ``I was ordered to kill it.''

Lotus was replaced with a more limited package that included only Microsoft Word and the reference package Microsoft Bookshelf, Correa said.

Correa said he and his boss managed to keep Lotus on the small portion of machines that make up the commercial market and they are there to this day. Lotus, a unit of IBM, had no comment.

In another negotiation, Correa said that one of his bosses soured on a software licensing deal with Corel early this year. The boss feared Microsoft would back off from co-operating on a joint technology project.

``He said to me, and this is a quote, 'I would pay $2 million more to keep Microsoft happy,''' Correa said.

Correa said he handed in his resignation in early April, after an Acer manager ruled out replacing the Microsoft Encarta encyclopedia with World Book, made by IBM. Later World Book did get on the low end of the line after protests by IBM, an important customer, he said.

Correa, who lives in San Francisco, said he decided to talk with Reuters because he was quitting the field of computers and software entirely.

``I'm telling this story because there are so many people fed up in this industry and I'm fed up,'' said Correa.

Microsoft spokesman Mark Murray described Correa's allegations as ``false and misleading.'' Acer also strongly denied the allegations.

Michael Culver, vice president and general manager of Acer's consumer business division, said Correa was a disgruntled employee who did not understand how decisions were made.

``The financial and business decisions are secondary to 'ease of use' requirements,'' Culver said. ``In each of these cases, (Lotus) Smart Suite and Corel were disqualified based on our ease of use testing, not based on any business negotiations. ''

Culver said that contracts were confidential and he was unable to disclose terms, but he could say flatly that ``there was no pressure brought to Acer by Bill Gates or anybody else at Microsoft regarding the decision to bundle Microsoft's applications versus any of the competitive applications.''

Acer's corporate counsel, Suchitra Narayen, said in a fax to Reuters that the company believed Correa's account was inaccurate or incomplete and said that he was not in a position to have direct knowledge about Microsoft matters.

But people from other companies who dealt with Correa disagreed.

Steve Houck, a sales account manager with Canadian software maker Corel, a rival of Microsoft best known for its Word Perfect and Corel Draw products, said anyone who wanted to license software to Acer went to Correa.

``He would see the inner workings of that side of the business,'' said Houck. ``In everything I've dealt with him he's

been on the up-and-up and very professional.''

Other people who had professional dealings with Correa also spoke to Reuters but declined to be identified, citing a fear of retaliation from Microsoft.

``You're lucky to get him,'' said one of them. ``We all know

the stories but no one will go on the record. What's amazing is, he decided to leave the industry.''

As part of a broad complaint against Microsoft that goes to trial on Sept. 8, the government wants a judge to prevent the Redmond, Wash., software firm from ``taking or threatening any action adverse to any person'' for ``failure to license or distribute Microsoft's Internet browser software or other software product.''

But fear pervaded Acer, Correa said, recalling that one of his bosses said: ``Look, we cannot afford retaliation.''

Correa said Acer executives feared the software giant would retaliate by withholding crucial updates and ``bug'' fixes for the Microsoft Windows operating system.

``If Microsoft does not give us information we are basically

paralyzed,'' said Correa.

But Microsoft said Correa's account mischaracterized the relationship, noting Gates spoke at Acer's 20th anniversary celebration in Taiwan in 1996. Correa's allegations center on events starting in early 1997.

``We have a strong relationship with Acer,'' said Microsoft's Murray. ``Their decisions over the years on what applications to ship have never had any impact on our operating system relationship.''

In fact, Correa said he greatly admired Microsoft.

``Microsoft is probably the most professional, the most competent, the most directed company I have ever done business with,'' he said. ``Not once, not twice, but every time they are able to outperform their competition in single-mindedness, in determination to accomplish the deal.''