From the wsj:
November 26, 2001
Microsoft Rivals Urge Judge to Reject
Proposed Class-Action Settlement
By MARK WIGFIELD
Dow Jones Newswires
WASHINGTON -- A trade association representing competitors of Microsoft Corp. is urging a federal judge in Baltimore to reject a proposed $1 billion settlement of more than 100 class-action antitrust suits against the company.
The settlement of the suits, which claim that Microsoft abused its monopoly power by overcharging for its computer operating system software, fails to help consumers, said Ed Black, president of the Computer and Communications Industry Association in a letter to U.S. District Court Judge J. Frederick Motz.
The settlement would "do nothing to deter future anticompetitive conduct by Microsoft and would inflict great harm upon the technology markets affected by such conduct," Mr. Black wrote. Microsoft agreed in the settlement to provide more than $1.1 billion in software and computers to over 14,000 of the nation's poorest schools.
Judge Motz is scheduled to hear testimony regarding the settlement in his courtroom Tuesday morning.
Microsoft had no immediate comment. Plaintiffs' attorney Stanley Chesley hadn't seen Black's letter, but said there are provisions in the settlement that would address concerns that Microsoft's gifts would enable it to dominate the educational software market.
A private educational foundation will administer technology grants that could be used for non-Microsoft software, and the company will also offer schools Apple Computer Inc. PCs, which don't use Microsoft's dominant Windows operating system.
"I don't blame them for making those assertions," said Mr. Chesley. "But I'd love to see some of those other software companies step up to the plate and donate some software."
In court on Tuesday, lawyers and economists backing the settlement will try to persuade the judge to sign off on the deal. It isn't clear whether he will hear from opponents, who have asked a state court judge in California to reject the settlement.
Mr. Chesley said it is unlikely that Judge Motz will rule on the matter Tuesday. The public hearing is unusual in that such settlement briefings are often conducted behind closed doors.
"I'm pleased that he's having this full-scale hearing," Mr. Chesley said. "The more the public and participants know about this proposal, the more they will support it."
Write to Mark Wigfield at mark.wigfield@dowjones.com
interactive.wsj.com |
