FC: DOJ to Microsoft: We've changed our minds -- no breakup required

From: Declan McCullagh (declanat_private)
Date: Thu Sep 06 2001 - 08:06:23 PDT

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    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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