taxman---Microsoft Corp.
Dow Jones Newswires -- November 19, 1999
DJ Judge In Microsoft Antitrust Case Appoints Fedl Mediator
WASHINGTON (AP)--The judge in the Microsoft antitrust trial appointed a mediator Friday to oversee "voluntary" settlement talks between the government and the software giant. The surprise move dramatically increases chances for an out-of-court agreement.
U.S. District Judge Thomas Penfield Jackson appointed Richard Posner, the widely respected chief judge for the 7th U.S. Circuit Court of Appeals in Chicago. Jackson left it up to Posner to schedule any talks.
Jackson, who ruled two weeks ago that Microsoft is a monopoly that stifled competition and hurt consumers, has actively encouraged the sides to settle. In a highly unusual move, he structured the verdict to come in two phases in an apparent effort to push lawyers toward the bargaining table.
The sides have met three times in face-to-face negotiations since the trial started in October 1998, but remain far apart on crucial issues despite recent statements they are open to settlement.
In remarks this week, Microsoft Chairman Bill Gates has appeared to willing to negotiate some points, but government lawyers bristled at restrictions he apparently imposed.
Gates said, for example, that Microsoft won't surrender its right to decide which features he can add to Windows. He also indicated his opposition to a public auction of the software code for Windows, the operating system that runs most of the world's personal computers.
Jackson delivered a blistering ruling against Microsoft on Nov. 5 in which he agreed with almost all of the government's allegations against the company. He characterized Microsoft as an abusive monopolist that took actions against some of the high-tech industry's leading players, including Intel Corp. and IBM.
The surprising tenor of the judge's factual findings raised the possibility of a serious, eventual judgment against Microsoft. Lawyers and analysts said the ruling indicated Jackson might even be willing to consider a dramatic remedy, such as breaking up Microsoft.
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