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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: nommedeguerre who wrote (37311)	1/31/2000 9:02:00 PM
From: Scott Kleinhans	Respond to of 74651

Reuters, Jan 31, 2000 20:52 hrs Industry group files pro-Microsoft court brief WASHINGTON, Jan 31 (Reuters) - A pro-Microsoft industry group filed court papers Monday arguing that Microsoft Corp. (NASDAQ:MSFT) engaged in the kind of vigorous competition envisioned in the nation's antitrust laws, rather than violating those laws. In a 46-page "friend of the court" brief, the Association for Competitive Technology (ACT) laid out its views of the case for U.S. District Court Judge Thomas Penfield Jackson. The brief is one of four Jackson will get as he ponders whether Microsoft broke the law in charges brought against the company by the Justice Department and 19 states. The briefs are due Tuesday, but ACT released its paper on Monday. Jackson issued "findings of fact" last year that said Microsoft had used its monopoly power to damage customers, competitors and other firms. The ACT brief said that Microsoft holds a monopoly but does not abuse it. It argued there is "nothing wrong with a firm that enjoys a lawful monopoly seeking to maintain or increase its market share." The ACT amicus brief was signed by heavyweight lawyers hired by the organization, including Lloyd Cutler, an adviser to Democratic presidents, and C. Boyden Gray, a former legal counsel to vice president George Bush, and others. Gray heads the Citizens for a Sound Economy, another outspoken voice in favor of Microsoft. The Washington Post reported this week that Citizens for a Sound Economy lobbied to cut the funding of the Justice Department's antitrust division, which brought the case against Microsoft, after the organization's tax exempt foundation received $380,000 from Microsoft. CS officials say their opposition to the Microsoft suit came long before the company's contribution. Much of the court case has centered around Microsoft's "browser war" against Netscape Communications, which was sold last year to America Online Inc (NYSE:AOL). The government has argued that Microsoft competed unfairly against Netscape, using its monopoly power over the Windows personal computer operating system to gain unfair advantages. ACT argued that Microsoft engaged in "exactly the kind of vigorous competitive challenge the antitrust laws encourage." ACT said that Microsoft "improved quality, offered Internet Explorer at no additional charge, entered into efficient distribution arrangements, provided valuable technical support to independent software developers, and integrated Internet Explorer more fully into Windows." But in doing this, the brief said, the company never prevented Netscape from competing. The reason that Microsoft's product did better was that America Online chose Microsoft's Internet Explorer over Netscape's browser. AOL "made that choice because it believed Internet Explorer better met its needs," ACT said. Other amicus briefs due Tuesday include one by Harvard University law professor, Lawrence Lessig, at the invitation of Judge Jackson. 202 898-8383, E-Mail washington.equities.newsroom@reuters.com)) Copyright 2000, Reuters News Service Companies or Securities discussed in this article: Symbol Name NASDAQ:MSFT Microsoft Corporation NYSE:AOL America Online Inc