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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Math Junkie who wrote (51605)	9/6/2001 3:05:53 PM
From: Proud_Infidel	Read Replies (2) \| Respond to of 70976

At another time, this would have inspired a rally: U.S. Abandons Microsoft Breakup Effort Sep 6 1:04pm ET By Peter Kaplan WASHINGTON (Reuters) - The Bush administration, in a shift from the Clinton administration's strategy, said on Thursday it would not seek to break up Microsoft and would strive to find a remedy in the landmark antitrust case against the software giant "as quickly as possible." In abandoning the previous administration's line of attack in the three-year-old case, the U.S. Justice Department also said it would not pursue an unresolved claim that Microsoft Corp. illegally tied its Internet Explorer browser to its Windows operating system. "The Department of Justice's Antitrust Division today advised Microsoft that it will not seek a breakup of the company in remand proceedings before the U.S. District Court," the agency said in a statement. Instead, the department said it will pursue a remedy "modeled after the interim conduct-related provisions of the final judgement previously ordered in the case," a ruling issued by Judge Thomas Penfield Jackson in June 2000. That remedy, among other things, would ban Microsoft from threatening or intimidating PC manufacturers who support rival software and requires the company to give outside software developers greater access to the Windows source code, the basic programming instructions for its software. It also requires Microsoft to license Windows under uniform terms to all personal computer makers and give them flexibility to modify the initial "boot-up" sequence of the operating system. However, the government was silent on Thursday on the issue of Microsoft's plans to launch its new operating system, Windows XP, to consumers on Oct. 25. Government attorneys had been expected to argue that the new system, packed with new features, is further evidence that Microsoft continues to illegally use its monopoly power. But government sources have said the Justice Department has no plans to seek an injunction halting the release of the long-awaited Windows upgrade. "The change to a more pro-business Bush administration made a breakup unlikely," said Brendan Barnicle, an analyst at Pacific Crest Securities. "The reality of a settlement becomes more likely without the threat of a breakup hanging over the company's head." After an initial boost, Microsoft stock fell as the market digested the news, falling $1, or about 1.7 percent, to $56.74 in active early afternoon trade on the Nasdaq. A Microsoft spokesman said only that company officials "remain committed to resolving the remaining issues in this case." Since its 1975 founding, Microsoft has grown to become the world's most valuable software company, with annual revenues of over $25 billion a year. It has made co-founder and Chairman Bill Gates one of the world's richest men and helped keep the United States at the forefront of the digital age. DISTRICT COURT ACTION The U.S. Court of Appeals for the District of Columbia in June upheld Jackson's ruling that Microsoft holds a monopoly in the PC operating systems market and used illegal tactics to defend it. However, the appeals court reversed his order that Microsoft be split in two as an appropriate remedy for the violations. The court sent the case back to a different district court judge to sort out several remaining issues. Judge Colleen Kollar-Kotelly will hold hearings to decide what sanctions to impose on the software giant to prevent future abuse of its monopoly. She had also been set to consider whether the company violated the law by tying its Internet Explorer browser into the Windows operating system, a fight the Bush administration said it would no longer wage. The Justice Department said on Thursday that pursuing that claim "would only prolong proceedings and delay the imposition of relief that would benefit consumers." Thursday's announcement came as the two sides were complying with an order to work out a proposal on how further proceedings should be structured, with a report due to Kollar-Kotelly by Sept. 14. Judge Kollar-Kotelly has scheduled a meeting on the status of the case for Sept. 21. "In view of the Court of Appeals' unanimous decision that Microsoft illegally maintained its monopoly over PC-based operating systems -- the core allegation in the case -- the department believes that it has established a basis for relief that would end Microsoft's unlawful conduct, prevent its recurrence and open the operating system market to competition," the Justice Department said. The 18 states' attorneys general also suing Microsoft supported the government's decision. "Since the court of appeals decision, the states and the Department of Justice have directed their efforts to one objective -- the quickest and most effective remedy possible," Iowa Attorney General Tom Miller said in a statement.