Recent Politech coverage of U.S. v. Microsoft:
http://www.politechbot.com/p-02440.html
http://www.politechbot.com/p-02365.html
http://www.politechbot.com/p-02286.html
-Declan
DEPARTMENT OF JUSTICE
FOR IMMEDIATE RELEASE
AT
THURSDAY, SEPTEMBER 6, 2001
(202) 514-2007
TDD (202) 514-1888
WWW.USDOJ.GOV
JUSTICE DEPARTMENT INFORMS MICROSOFT OF PLANS FOR FURTHER
PROCEEDINGS IN THE DISTRICT COURT
Action Seeks Prompt, Effective, and Certain Relief for Consumers
WASHINGTON, D.C. - The Department of Justice's Antitrust Division today
advised Microsoft that it will not seek a break-up of the company in remand
proceedings before the U.S. District Court. It also informed the company
that it does not intend to pursue further proceedings on the tying count of
the original complaint. The Department said it is taking these steps in an
effort to obtain prompt, effective and certain relief for consumers.
Today's announcements were made in light of an order by the District Court
directing the Antitrust Division and Microsoft to produce a joint status
report by September 14, 2001, outlining proposals for further proceedings
in the case. The Division advised Microsoft of its position on the tying
claim and the issue of structural relief to facilitate consultations on the
joint report.
In June, the Court of Appeals upheld the District Court's ruling that
Microsoft had engaged in exclusionary conduct intended to maintain its
monopoly in the market for PC operating systems. The District Court
initially had found that Microsoft also had unlawfully tied its web browser
to the operating system, but the Court of Appeals reversed and remanded the
tying count for consideration under a more rigorous legal standard. The
Court of Appeals also vacated the remedies imposed by the District Court,
directing a new judge to fashion appropriate remedies following evidentiary
hearings.
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. Pursuing a liability determination on the tying claim would
only prolong proceedings and delay the imposition of relief that would
benefit consumers.
The Department also informed Microsoft that, in light of the Court of
Appeals opinion and the need for prompt, effective and certain relief, the
Department will not seek a break-up of the company into separate operating
systems and applications businesses, as previously had been ordered by the
court. Instead, the Department will seek an order that is modeled after
the interim conduct-related provisions of the Final Judgment previously
ordered in the case.
The Department will ask the court for a period of expedited discovery to
investigate developments in the industry since the trial concluded, and to
evaluate whether additional conduct-related provisions are necessary,
especially in the absence of a break-up. The Department is seeking to
streamline the case with the goal of securing an effective remedy as
quickly as possible.
###
01-447
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Received on Sep 06 2001
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