The US Justice Department, pursuing Microsoft in a wide-ranging antitrust suit, is investigating whether the software giant used its muscle to force Intel to curb product development, the New York Times said yesterday.

The report refers to a meeting between Microsoft and Intel executives in August, 1995, at which Microsoft chairman, Mr Bill Gates issued "vague threats" to persuade Intel to shelve new technology at odds with Microsoft's own plans, the newspaper reported.

Mr Gates was "livid" at Intel's investments in the Internet and wanted them stopped, according to internal Intel memos the company was required to hand over to investigators.

One Intel project developed at the Intel Architecture Labs (IAL) was to integrate Java, a programming language developed by a Microsoft rival on to its chips, and develop support for Internet features.

The US Government and 20 states are suing Microsoft for allegedly using its dominant position to protect its monopoly and to extend that monopoly into Internet technology.

Microsoft said investigators were trying to portray routine meetings, as in the Intel case and others, as attempts to forge anti-competitive conspiracies, the newspaper reported.

The Department of Justice declined to comment on the report.