Gates Open to 'Any Resolution' of Suit?
By David Lawsky
WASHINGTON (Reuters) - Microsoft Corp (NasdaqNM:MSFT - news). Chairman Bill Gates, asked if he would fight to prevent a breakup of his company, said in a television interview Wednesday he was willing to discuss ``any sort of resolution' to a landmark antitrust case brought by the government.
Gates's comments fueled speculation among legal experts about what he might be willing to do to settle the case, in which a federal judge found that Microsoft abused monopoly power to harm consumers and competitors. The judge's findings will serve as the basis for a later ruling on whether Microsoft broke the law and his eventual imposition of remedies to correct any problems he finds.
Gates was asked twice on ABC's ``Good Morning America' whether he would be open to a break-up of the company. After an initial noncommittal answer, he was asked: ``I think (people) expect you to say, 'I am going to fight tooth and nail any attempt to break up the company.' Is that true?'
Replied Gates: ``I don't see how a lot of things that are being discussed would benefit consumers (and) that's what this all comes down to in the final analysis. We are very curious about any sort of resolution that could come along. We'll sit and be willing to discuss that. People who speculate about penalties are really off the mark at this point.'
That comment -- that he is curious about and willing to discuss any sort of resolution -- went further than his remarks published in Time Magazine earlier this week about how far the company would be willing to go to settle the case.
The ABC interview question, posed via remote hook-up from the Comdex trade show in Las Vegas, served as a follow-up to the much-publicized Time interview in which Gates twice refused to rule out breaking up the company to settle government antitrust charges.
The case was brought by the Justice Department and 19 states, which would all have to sign off on any settlement.
In the earlier interview, Gates said that although he would like to settle, he would oppose any deal that would restrict the company's freedom to design Windows, assure its consistency, and defend its brand identity.
Gates listed problems with several different kinds of potential remedies in the case, but ducked when it came to talking about a break-up.
``I can't go down the path of saying what the settlement would be,' Gates told Time when asked specifically about a breakup.
Microsoft spokesman Mark Murray, asked about the Time interview, said on Monday: ``We have said throughout this process we don't believe there is any legal or logical basis for these extreme proposals, such as a breakup or a confiscation of Microsoft's intellectual property, and our position on that is completely unchanged.'
One motivation for the company to settle is that if the judge rules against Microsoft, it will put the company at an immediate disadvantage in private antitrust suits against it.
Even if it were to appeal an adverse ruling by U.S. District Judge Thomas Penfield Jackson, other firms could use the judge's finding that Microsoft is a predatory monopoly in their own suits against the market leader.
If in coming months Judge Jackson finds the company did break the law, as experts predict he will, he would hold further proceedings before imposing remedies, which could include a breakup or less dramatic measures. |
