Justice Department slaps Microsoft
The U.S. Justice Department said it will seek a $1 million per day fine against Microsoft for
allegedly violating a 1995 agreement barring the world's largest software company from
anticompetitive practices. The dispute centers on Microsoft's reported requirement that personal
computer makers use Microsoft's Internet browser, Internet Explorer. Joe Klein, assistant
attorney general, said his office allows Microsoft "to compete aggressively, but not illegally." On
the news, Microsoft shares fell 3 percent while shares in rival browser maker Netscape surged
16 percent.
The software company will report earnings after the market closes Monday, with analysts
expecting the company to earn 70 cents a share, an increase of 49 percent, for its fiscal first
quarter. Revenue is expected to reach about $3.1 billion, up 35 percent from the year-ago level.
At least one analyst, George Koo at Burnham Securities, expects the company beating the
consensus estimate, boosted by strong sales of new products. Koo estimates Microsoft will earn
73 to 74 cents a share. Investors will be paying particular attention to the results from Redmond,
Wash., since another technology bellwether, Intel, fell short of expectations this week, helping
drag down stocks across the tech sector. See DBC Report. |
