In June, the District of Columbia Court of Appeals ruled that
Microsoft had breached antitrust laws, but rejected a proposed
remedy to split the company in two and subsequently referred the
case to a lower court for an alternative remedy to be found. The
Department of Justice last week announced that it would not now be
pushing for reinstatement of the break-up remedy.
There are 18 Attorneys General involved in the case against
Microsoft. Elliot Spitzer, Attorney General for New York, said in a
statement issued jointly with his Californian counter-part:
"The states of New York and California will insist that Windows
XP - Microsoft's latest version of its personal computer operating
system, scheduled for marketplace release in the next few weeks -
receive close scrutiny in arriving at a judicially ordered remedy.
As the US Court of Appeals found, some of the ways that Microsoft
unlawfully crushed competition from Netscape included bundling
Microsoft's internet browser to its Windows operating system, and
pressuring industry computer makers into refraining from adding
Netscape's browser to the computers that they sold. It is
imperative that Microsoft not have another opportunity to use
Windows XP to suppress competition in emerging internet areas.
The states are committed to pressing the trial court for
stringent remedies that will change the conduct by Microsoft that
the courts have found to be illegal, and that will provide
consumers with the benefits of competition. We look forward to
continuing to work with the Department of Justice in the
proceedings that are about to begin before the trial court, but
will, if necessary to protect the public, press for remedies that
go beyond those requested by the Department of Justice."
According to a report today by the Wall Street Journal,
Microsoft is preparing a settlement proposal for the Department of
Justice, with a view to concluding the Department’s antitrust suit
against the company.
