[Am-info] Microsoft apologizes

[Mike Stephen]

cp business news
Wednesday, Mar 17, 2004 	
	
Microsoft apologizes for previous anticompetitive acts at Minnesota trial

MINNEAPOLIS (AP) - Microsoft apologized to jurors for its past 
anticompetitive practices during opening statements Wednesday in a case 
alleging the company's antitrust violations include word processing and 
spreadsheet software.

"Yes, we acknowledge that and we apologize for it," said David Tulchin, 
a Microsoft lawyer. "The conduct involved competition that went over the 
line. The question for you is whether or not consumers were overcharged."

Tulchin was referring to actions that were the subject of a settlement 
Microsoft reached with the U.S. Justice Department in 2001 in a lawsuit 
regarding the company's operating-system monopoly. That settlement was 
admitted into evidence in the Minnesota case, which alleges that 
violations included Microsoft's Word and Excel software.

Lawyers for the plaintiffs gave jurors an overview of their case earlier 
in the week, alleging that Microsoft overcharged about one million 
people or businesses in Minnesota for about 9.7 million software 
licences issued between 1994 and 2001.

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The plaintiffs seek damages of up to $425 million US, or up $505 million 
if the court rules that the damages can be adjusted for inflation.

Tulchin began his presentation Tuesday and told jurors that Microsoft 
may have competed vigorously with other software makers, but not illegally.

He asked jurors: "Should Microsoft just stop competing so others can 
catch up?"

Tulchin said prices for Microsoft's Windows operating systems have 
hovered around $50 each, and prices for Word and Excel have dropped. He 
also attacked the idea that Microsoft practices have hurt consumers.

The lawsuit names six representatives of the class of people allegedly 
hurt, and Tulchin told jurors that four of them have connections to the 
law firm bringing the case, including one who lives with a secretary at 
the firm.

"Who really was injured by anything here? We think the evidence will 
show that no one was," Tulchin said.

In similar cases, Microsoft has reached settlements with nine states and 
Washington, D.C., totalling $1.5 billion. Cases were dismissed in 16 
other states.

In the 2001 settlement of the case brought by the U.S. government, 
Microsoft was found to have illegally monopolized the operating system 
market using Windows. The trial judge ordered a breakup of Microsoft, 
but a federal circuit court overruled the decision. It did, however, 
uphold the judgment that Microsoft held a monopoly with Windows.

Microsoft chairman Bill Gates and Microsoft's chief executive, Steve 
Ballmer, are scheduled to testify in the Minnesota trial, which is 
expected to last more than three months.

© The Canadian Press, 2004