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Technology Stocks : How high will Microsoft fly?
MSFT 508.82+0.6%Nov 11 3:59 PM EST

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To: Tom Ardnij who wrote (13037)12/7/1998 11:25:00 PM
From: ToySoldier  Read Replies (1) of 74651
 
Yup, the State AG's are running for the hills - NOT!

Antitrust defection not expected to cause a ripple

By Michael Moeller, PC Week Online and Charles
Cooper, ZDNN
December 7, 1998 5:49 PM ET

South Carolina appears to be a lone wolf in
its decision to pull out of the coalition of
states taking on Microsoft Corp. (MSFT) in
their landmark antitrust case.

Attorneys General in Minnesota, Wisconsin
and Iowa said Monday afternoon they are
committed to participating in the trial and
have no plans to back down.
Earlier today,
South Carolina Attorney General Charles
Condon cited the proposed merger of
America Online Inc. and Netscape
Communications Corp. as the reason for
getting out of the fight, claiming that the union
shows there is competition in the Internet
marketplace.

However, sources at other states said the
merger has nothing to do with the operating
system market and Microsoft's monopoly
power -- the focus of the current case.

Other sources said South Carolina has not
participated much in the preparation or
execution of the lawsuit and has had little
communication with the other states thus far.

The official responsible for quarterbacking
the states' participation in the case said he
doesn't expect other states to drop out.

"It's full-speed ahead," said Iowa Attorney
General Tom Miller, adding that South
Carolina's decision will not affect the current
case "in any way, shape or form."

Miller said a defection would have been
more significant had the government been
losing.

"But the case has gone strong for us so far," he said. "The trial is focused
on alleged unlawful conduct. And that remains a very important part of
the case."

Kevin O'Connor, assistant Attorney General for Wisconsin, added that
the trial has been going well from the government's point of view.

"We're pleased with how things are going thus far,' O'Connor said.

Holly Zimmer, a spokeswoman with Minnesota's Attorney General
office, added, "We still believe there have been violations of law, and
we're presenting cases of law in Washington."

"I think it's mainly a modest public relations victory for Microsoft outside
the courtroom," said Bill Kovacic, a law professor at George
Washington University in Washington. "To an extent, it may be a little bit
demoralizing for the plaintiffs, but it's not going to affect [U.S. District
Court Judge] Thomas Penfield Jackson's resolution."
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