|
Nine States' Attorneys General
Met to Plan Against Microsoft
By DON CLARK and DAVID BANK
Staff Reporters of THE WALL STREET JOURNAL
Representatives of attorneys general from as many as nine states met
last week to coordinate possible antitrust enforcement actions against
Microsoft Corp., people familiar with the meeting said.
The Chicago gathering, hosted by the Illinois attorney general's office,
could signal a more vigorous effort to restrain Microsoft's marketing
practices, which are also under scrutiny by the U.S. Department of
Justice and antitrust regulators in Europe and Asia.
Company Profile
Microsoft
Join the Discussion
What should the Justice Department do about Microsoft? Would breaking it
up be an unfair penalty? Or has Microsoft simply proven too successful
for its competitors?
From the Archives
Microsoft to Appeal Court Order Curbing Its 'Bundling' of Software
Cerebral Law Scholar Will Play Key Role in Lawsuit (Dec. 15)
Federal Judge Orders Microsoft to End 'Bundling' (Dec. 12)
Gates Accuses Critics of 'Witch Hunt' (Nov. 14)
Microsoft Says Case Aims to Stall Windows Improvements (Nov. 11)
Computer Firms Tell of Microsoft's Tough Tactics (Oct. 23)
U.S. Charges Microsoft With Violating 1995 Accord (Oct. 21)
In the U.S. action, Microsoft Tuesday filed a motion for expedited
appeal of a federal court order affecting its Internet software, arguing
that the ruling and resulting doubts about Microsoft's Windows 98
operating system could harm significant parts of the U.S. economy.
Microsoft's motion adds more detailed arguments for overturning a
preliminary injunction issued last week by U.S. District Judge Thomas
Penfield Jackson. The judge moved to block Microsoft's practice of
requiring computer makers to use its Internet software along with the
company's operating systems. The move came in response to a Justice
Department suit alleging Microsoft violated a 1995 consent decree.
Microsoft said Monday it would appeal.
The software company claims the ruling puts it in an awkward position,
according to documents it filed with the U.S. Court of Appeals for the
District of Columbia. The ruling will force the company to ship, it
says, an outdated version of its Windows 95 operating system, to allow
personal-computer makers to strip out data files representing the retail
version of its Internet Explorer 3.0 browser.
Microsoft added the ruling appears to apply to the forthcoming Windows
98 operating system -- a big concern to many companies -- though the
Justice Department didn't seek to enjoin that product.
"Indeed, significant segments of the United States economy may be
affected by doubt surrounding the release of Windows 98," Microsoft
wrote. The company has said, however, that it doesn't expect to delay
shipping the product.
Justice Department officials weren't immediately available. But an
agency official said Monday that Microsoft's plans for offering PC
makers a choice about receiving Internet Explorer don't appear to comply
with the order.
At the three-day meeting in Chicago, which included antitrust regulators
from such populous states as Illinois, Massachusetts, California,
Minnesota, Texas and New York, officials considered a range of
enforcement options that could force Microsoft to alter its marketing
tactics nationwide. State officials are increasingly working together,
and earlier this year played a key role in negotiating a proposed
settlement with the tobacco industry.
Antitrust experts say state antitrust laws give the regulators broad
powers to bring suits or take other action against companies in their
jurisdictions. But the attorneys general pursuing Microsoft have so far
been secretive about their specific plans. At the Chicago meeting, the
officials broke into working groups to consider further actions,
according to one person familiar with the matter.
Netscape Communications Corp., Microsoft's main competitor in the market
for Internet-browser technology, has received subpoenas from more than a
half-dozen states.
A Microsoft spokesman said the company wasn't aware of the latest
meeting by state officials.
|
