[Am-info] Microsoft Case Turns Sharply

[Gene Gaines]

Microsoft Case Turns Sharply
By AMY HARMON

JUN 19 2002

The New York Times

http://www.nytimes.com/2002/06/19/technology/19SOFT.html?todaysheadlines

Partial text below:

"The federal judge in the Microsoft antitrust trial indicated for
the first time yesterday that she was questioning the government's
proposed settlement, which she could reject if she found that it
was not in the public interest.

Lawyers for Microsoft and the coalition of states pursuing a more
restrictive antitrust remedy are scheduled to make their closing
arguments today. But in an unexpected order issued yesterday
afternoon, the judge appeared less interested in hearing summaries
of the opposing views than in structuring a mediation
session.

Judge Colleen Kollar-Kotelly of the Federal District Court in
Washington told Microsoft and the states to be ready to answer
questions about how their respective proposals could be modified
to make the terms acceptable.

The order is significant in part because the states' case has been
viewed as a long shot, with legal precedent dictating that the
judge show deference to the federal government's decision. But
Judge Kollar-Kotelly now appears to be urging Microsoft to
reconsider at least certain parts of the proposal.

The states say the Justice Department's settlement with Microsoft,
reached after an appeals court found the company liable for
repeated antitrust violations last year, would allow the company
to continue to stifle competition in the market for computer
operating systems.

Microsoft argues that the states' proposals would destroy the
computer software market, raise prices and force the company to
stop selling its Windows operating system, which runs on 95
percent of the world's personal computers.

"As defendant is well aware, its proposal has been criticized,"
she wrote, for containing so many exceptions that the
effectiveness of its restrictions would be undermined. She ordered
Microsoft lawyers to be prepared to indicate places where the
proposal could be tightened.

The Justice Department, Microsoft and lawyers
for the states declined to comment on the order yesterday.

"This has got to be chilling to you as the federal government and
Microsoft," said Andrew Gavil, an antitrust professor at Howard
University who has followed the case closely. "She has accepted to
some extent that there are loopholes in the settlement."

...


Antitrust experts said the judge could run into procedural
challenges if she tried to join two entirely separate proceedings
into one.

If she rejects the government's settlement, she
would essentially be ordering the Justice Department to continue
litigating a case it had chosen to settle.

..."

Gene Gaines
gene.gaines@gainesgroup.com
Sterling, Virginia  USA


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