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Technology Stocks : How high will Microsoft fly?
MSFT 483.03+0.5%Dec 5 9:30 AM EST

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To: RTev who wrote (19566)4/2/1999 3:36:00 PM
From: t2  Read Replies (3) of 74651
 
RTev, What do you think of the following in terms of a settlement.
I think it is the type of settlement we could get if a deal is reached in the near future.

-more flexibility to PC makers (start up screen)
-transparent pricing on Windows ie no discriminating against IBM.
-that bit about the exclusive deals (I think MSFT has already worked on these)
-access to Windows code on a timely basis for software developers.
- having an anti-trust division within the company so that they could advise the company of potential anti-trust activity (just like Intel).

Obviously, a break up is going to be out of the question. Nobody really wants it anyways ( I mean consumers and corporations, not competitors), unless they were insane. Yea--I can just imagine that you, RTev, stating "break up is on the table".
IMO, the above looks like the deal we will see whether it is now or a few months from now. It is the only way MSFT would settle. If the DOJ wants more, MSFT would have nothing to lose if they were to go to a verdict. That is the pressure the government would feel if they insisted on more concessions. No appeals court would uphold a verdict calling for a break up anyways and I bet the DOJ/states would not ask for it. They know of MSFT's importance to the economy.

Remember the punishment would have to fit the crime. All I can see is that MSFT has been able to scare some PC makers. Under a transparent pricing system, the fear will go away. Consequently, they will be able to put in whatever software they want. I don't think MSFT would allow them to tamper with Windows except the start up screen. The navigator browser has not been stopped from distribution anyways.
If the DOJ wants to dish out more punishment---MSFT will opt for a verdict which will not be as bad and which they will appeal for a long time. The days of the courtroom witnesses putting on a "show" will be over. It will be to lawyers and Appeals court judges who I believe are more competent than Jackson, although you believe Jackson is smarter than the ones that overturned the Windows95 injuction. Even if Jackson is a good judge, the fact that a ruling will come from a panel of legal experts(judges)---is enough for MSFT to pursue this approach. Just like senator Gordon, MSFT believes Jackson is biased but won't admit it in public, of course. This last paragraph is how i would sum up the situation. I am sure you see it differently but I would happy to read you opinion.
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