Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Michael L. Voorhees who wrote (40265)	4/1/2000 9:09:00 PM
From: taxman	Read Replies (3) \| Respond to of 74651

Washington, April 1 (Bloomberg) -- Efforts to settle the government's landmark antitrust case against Microsoft Corp. collapsed today after a judge in Chicago appointed to mediate the case said talks failed. The announcement clears the way for U.S. District Judge Thomas Penfield Jackson to announce a ruling next week. The judge is widely expected to find that Microsoft broke the law, setting the stage for a hearing on sanctions that could be as harsh as a court-ordered breakup of the world's largest software company. After more than four months of talks, the disagreements ``are too deep-seated to be bridged,' said the mediator, U.S. Circuit Judge Richard Posner of Chicago. ``I believed when I undertook this assignment that it was in the national interest that the case be settled, and I believe it even more strongly today.' Microsoft Chairman Bill Gates suggested a split between the Justice Department and representatives of the 19 states suing the world's largest software company led to the breakdown. ``The Department of Justice and the states were not working together,' Gates said in a statement. ``Between them, they appeared to be demanding either a breakup of our company or other extreme concessions that go far beyond the issues raised in the lawsuit.' Appeals Court Strategy Microsoft Chief Executive Steve Ballmer suggested the company's strategy is to bank on overturning in the appeals courts any sanctions ordered by Judge Jackson. Company officials ``continue to believe that we have a strong legal case, and that the judicial system will ultimately rule in our favor,' Ballmer said. While he said Microsoft would prefer a settlement, ``we must protect our right to bring the best products for consumers to the fast-changing marketplace.' Posner refused to disclose details of the negotiations, but he said that contrary to some news reports based on ``a good deal of leaking and spinning,' there had been serious bargaining over the past months -- not just in the past two weeks. ``Almost 20 successive drafts of a possible consent decree, evolved over the past months, had been considered by the parties before it became clear late last night that the case would not settle,' he said. Posner said the public interest ``would be served by avoiding further litigation, with its potential for unsettling a key industry in the global economy.' The government expressed disappointment in the collapse of the discussions. ``We would have preferred an effective settlement to continued litigation,' said Assistant Attorney General Joel Klein, head of the Justice Department's antitrust division, in a statement. ``But settlement for settlement's sake would be pointless.' Microsoft Proposal The settlement discussions -- conducted by Posner, Jackson's hand-picked mediator, had focused in recent days on a proposal Microsoft submitted after Jackson warned that he was about to rule. At issue in the discussions was what concessions antitrust enforcers would accept to settle claims the software giant illegally defended its monopoly in the market for personal computer operating software. Microsoft's Windows operating system operates 95 percent of the world's PCs. Microsoft shares rose 2 7/8 to 106 1/4 yesterday and had rallied recently on reports that there might be progress in the settlement discussions. Analysts said news of a breakdown in the settlement talks probably would spark a decline in the company's stock. Among other things, Microsoft had proposed detaching its Web browser from the Windows operating system to give computer makers more choice about whether to install Internet Explorer or a rival product, people familiar with proposal said. Some antitrust enforcers have said they favor breaking up the company. The company's offer met with skepticism from government lawyers who are wary it wouldn't curb what they regard as anticompetitive behavior -- and both sides remained far apart, people familiar with the situation said earlier this week. Jackson ruled in November that Microsoft had a monopoly and used its dominance to thwart competition but stopped short of deciding whether the company violated antitrust laws. ¸2000 Bloomberg L.P. regards