How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 506.00

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To: Charles Tutt who wrote (43059)	4/24/2000 4:10:00 AM
From: puborectalis	Read Replies (1) of 74651

Govt. May Seek Breakup of Microsoft A.P. INDEXES: TOP STORIES \| NEWS \| SPORTS \| BUSINESS \| TECHNOLOGY \| ENTERTAINMENT Filed at 1:17 a.m. EDT By The Associated Press WASHINGTON (AP) -- The Justice Department and 19 states are leaning toward asking a federal judge to split Microsoft Corp. into two or three separate companies, The Washington Post reported. Citing people familiar with the discussions, the paper said in Monday's editions that a Justice Department plan being shared with states and industry executives envisions Microsoft being forced to split off its Windows operating system from the rest of the company. The rest of the company possibly then would be split in two, with one company handling applications software and the other the company's Internet business, including browser software. The browser software would be left with the operating system company if the parent company was split into only two parts, the report said. The Post noted that a call for a company breakup would be the first such action taken by the Justice Department since it a 1974 antitrust suit against AT&T Corp., which led to the breakup of the telephone giant. The government is to present its proposed remedies this week to a federal judge in Washington who has already ruled that Microsoft engaged in illegal activity to perpetuate a monopoly. ``There is nothing in the case that was brought that would merit such an unfounded remedy and one that is not in the interest of the industry or of consumers,' Microsoft spokesman Greg Shaw told the Post. ``It is difficult to know what's being floated as a trial balloon and what is something that all the parties will agree upon.' Microsoft has already made clear that it will appeal the ruling against it and the case is considered likely to be ultimately resolved by the Supreme Court. Antitrust Authorities May Force Microsoft To Sell Office Software Business<< Federal antitrust enforcers favor a forced divestiture of Microsoft Corp.'s Office software business as a way to restore competition in the software industry, said people who have been briefed on the proposal. Microsoft also would be subject to sweeping restrictions on its conduct for a limited time until the unit could be spun off and while any court appeal of the breakup is pending, these people said. Federal officials have been working on a remedy recommendation in the landmark antitrust case since a federal judge ruled against the company three weeks ago.

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