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To: Daniel Schuh who wrote (23875)4/2/2000 5:26:00 PM
From: Harvey Allen  Respond to of 24154
 
A source close to the government took the same view: ``No decision has been made on
remedies. All options remain open, nothing has been ruled in or out.'

dailynews.yahoo.com



To: Daniel Schuh who wrote (23875)4/3/2000 11:12:00 AM
From: Harvey Allen  Read Replies (1) | Respond to of 24154
 
Microsoft Ruling To Come Late Today

By LARRY MARGASAK, Associated Press Writer

WASHINGTON (AP) - The federal judge overseeing the
Microsoft antitrust trial was ready to issue his verdict today,
just days after settlement talks between the software company
and the government collapsed.

Microsoft officials confirmed today that U.S. District Judge
Thomas Penfield Jackson would issue his ruling after financial
markets close.

The judge was expected to rule against Microsoft, based on
harsh assessments he outlined last November in his ``findings
of fact.' In that document, Jackson found that Microsoft
repeatedly engaged in anti-competitive behavior by taking
advantage of its monopoly power. The charges were made in a
lawsuit filed against the company by the government and 19
states.

Microsoft stock was being
battered. At late morning it had
lost 13.7 percent of its value,
or $14.55 a share, to $91.70
on the Nasdaq market.

Jackson's ruling today was expected to specifically spell out
the violations of law against Microsoft. He would then begin
designing a remedy that could range from breaking up
Microsoft to restricting its conduct in the marketplace.

Sources familiar with the failed talks, speaking on condition of
anonymity, said Sunday that negotiations in Chicago collapsed
after the company insisted on its own proposal to settle the
lawsuit and not because of disputes between state and federal
plaintiffs.

Even before the states made new proposals Friday, ``It was
clear Microsoft was rejecting the government's proposal and
insisting on their own approach,' one source said. ``That
approach had a lot of loopholes and would not have been
effective.'

Microsoft Chairman Bill Gates contended Saturday that ``it
became impossible to settle because the Department of Justice
and the states were not working together. Between them, they
appeared to be demanding either a breakup of our company
or other extreme concessions.'

He did not provide details of the company's offer to settle the
case.

In an interview in today's Wall Street Journal, Gates said that
regardless of what Jackson rules, his company will continue to
integrate the Internet into its Windows software, even though
that linkage is at the core of the Justice Department lawsuit.

``The ruling is just a step in the legal process. It doesn't change
any situation relative to what we do,' he said.

Connecticut Attorney General Richard Blumenthal rejected
Gates' claim.

``The differences between the states and the Department of
Justice are minimal when compared to the divergence between
our side and Microsoft,' he said.

Describing the negotiations as ``very complex,' Iowa Attorney
General Thomas Miller said many factors led to the
breakdown, but ``the position of the states was not the cause
of the failure.'

The talks were with a mediator, Chief Judge Richard A.
Posner of the U.S. Court of Appeals in Chicago. ``Just
because mediation didn't succeed doesn't mean that
negotiations will cease. But that would be direct negotiations,'
Miller said.

Microsoft officials - including Gates - negotiated with
government attorneys just days before the Justice Department
filed its original complaint in 1998. An agreement appeared
likely until government lawyers complained that Gates
reconsidered details in an offer he made. The deal fell through,
and the government filed suit.

Last November, Jackson ruled that Microsoft was a monopoly
in the market for computer operating system software, and that
the company used its power to put the squeeze on
competitors' products.

A person familiar with the government's case said Microsoft
submitted what became its final offer Friday, the same day the
states made their own proposal. By that time, it was already
clear the company was rejecting the government's offer, the
source said.

The government's proposal included rules on what products
could be bundled with Microsoft's Windows software. Other
rules were designed to prevent Microsoft from retaliating
against personal computer manufacturers that used something
other than Windows on their products or supported competing
technology.

The company proposal was described as having holes in
provisions regarding the information that would be available to
developers of competing software. Microsoft did not want to
give competitors access to the same software code information
that its developers have, the source said.

dailynews.yahoo.com



To: Daniel Schuh who wrote (23875)4/4/2000 1:06:00 AM
From: Harvey Allen  Read Replies (1) | Respond to of 24154
 
Dan- David Boies and Connecticut Attorney General Richard Blumenthal were on Charlie Rose tonight and raised some interesting points.

Remedies are not necessarily postponed by the Appeals process.

The remedies asked for will be determined by a reading of the Conclusions of Law and determining its strength.

Blumenthal believes that Microsoft underestimated how quickly the Appeals process can be conducted and cited how quickly the trial proceeded as an example.

Boies pointed out that the four years of unlawful conduct followed immediately after the first Anti-trust settlement.

Harvey