Justice, states coordinate Microsoft actions

[Gene Gaines <ggaines@generation.net>]

The following quoted from Infobeat at
http://www.infobeat.com/stories/cgi/story.cgi?id=2553922757-ccd


"07:24 PM ET 04/28/98

   Justice, states coordinate Microsoft actions

         
   (Adds Microsoft comments, grafs 6-7, 17)
            By David Lawsky
            WASHINGTON (Reuters) - The federal government and some
states could file coordinated new antitrust charges against
software powerhouse Microsoft Corp. as early as next week,
sources said Tuesday.
            While the charges would be filed separately by the states
and the Justice Department, staff attorneys at both levels have
been discussing the best way to work together.
            ``Within a week there could be a coordinated filing,'' said
one source. But matters are still at the staff level, with
sign-offs needed from top officials, another source said.
            A Justice Department official had no comment.
            There has been speculation for months about possible new
charges against Microsoft and whether they would be brought
before the release of the company's ``Windows 98'' operating
system in June.
            Microsoft spokesman Mark Murray said he could not comment
directly on the speculation but said the software giant had
been ``working very closely both with state attorneys general
and the Department of Justice to resolve any questions they
might have.''
            ``We are hopeful that both the states and the Department of
Justice will agree that Microsoft is completely within the law
and competing fairly,'' he said.
            Only a few weeks ago, 11 state attorneys general were
preparing to file an antitrust case against Microsoft, in part
as a way to spur the Justice Department to action.
            Since then, the states and the federal government have
agreed that no jurisdiction should roll over another, those
familiar with the case said.
            West Virginia has joined the 11 states that were in on the
case earlier: California, Connecticut, Florida, Illinois, Iowa,
Massachusetts, Minnesota, New York, South Carolina, Texas and
Wisconsin.
            The Justice Department went to court last year against
Microsoft, charging it had violated a 1995 agreement that was
supposed to help increase competition in the software industry.
            A federal appeals court heard an appeal on several aspects
of that case last week.
            One of the judges observed that the case could fall into a
''time warp'' because it involves the Windows 95 operating
system, which is about to be replaced by Windows 98.
            Experts on all sides have said repeatedly that a new case
would be far more difficult to prove and win. All the Justice
Department had to prove in the existing case was that Microsoft
violated an existing contract.
            A new case would require proving violations of the Sherman
antitrust law, which can be complex, experts said.
            Microsoft is scheduled to begin providing Windows 98 to
personal computer makers next month. Once the software is
released, PC makers are all expected to switch over.
            Murray said any effort to block the new operating system 
''would hurt thousands of other companies who have invested
millions of dollars in their own business activities related to
the release of Windows 98.''
            Some analysts have said the Justice Department needs to act
before Windows 98 comes out, but others say it would make little
difference.
            Microsoft has worked to build consumer demand for the new
program, demonstrating it around the country. At one
demonstration in Chicago, Microsoft Chief Executive Bill Gates
showed off the program, only to have it fail in front of an
audience.
         ^REUTERS@"

Gene Gaines
ggaines@generation.net