How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 492.01

+1.3%

Nov 28 9:30 AM EST

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To: freeus who wrote (8572)	6/23/1998 10:52:00 AM
From: jim shiau	Read Replies (1) of 74651

WASHINGTON, June 23 (Reuters) - The U.S. Court of Appeals on Tuesday overturned an injunction that prevented Microsoft Corp. from requiring computer makers who use its operating system to also use its Internet browser. In a broad ruling, the appeals court decided 2-1 that a lower court made both procedural and substantive errors in imposing the injunction. Last fall, the Justice Department asked a federal judge to hold Microsoft in contempt and fine it $1 million a day for breaking a 1995 consent agreement by tying its Web browser to its Windows 95 operating system. Microsoft argued that it had the right under the agreement to integrate the products. The appellate court agreed with Microsoft. "We find that the District Court erred procedurally in entering a preliminary injunction without notice to Microsoft and substantively in its implicit construction of the consent decree on which the preliminary injunction rested," the court said. One of the government's key arguments was that Microsoft also sold its Web browser separately and therefore they were separate products. But the court said an "integrated product" was one that that combines functionalities in an advantageous way for the purchaser, regardless of whether components were also sold separately. In addition to the Justice Department's narrow case over the 1995 consent decree, the department has also brought a broad antitrust case alleging that Microsoft competed unfairly with other software makers. A trial in that case has been setfor Sept. 8.

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