In a message dated 3/24/00 11:45:30 AM Central Standard Time, Ahab42 writes:
MARCH 24, 04:30 EST
Gov't Retreats From Microsoft Split
By TED BRIDIS
AP Technology Writer
U.S. District Judge Thomas Penfield Jackson
Associated Press/Ric Feld [20K]
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WASHINGTON (AP) — Sources close to the Microsoft antitrust case say it looks
like the federal government is backing away from demanding the break up of
the software maker.
The move represents a fundamental shift by the Justice Department, which
largely decided months ago to press for a breakup while anticipating a
strongly favorable ruling from U.S. District Judge Thomas Penfield Jackson in
the coming weeks.
It also puts Justice's stance at odds with some state attorneys general, who
believe that only the harshest punishment is appropriate.
Microsoft has indicated it will not accept any settlement that divides the
company, and U.S. Assistant Attorney General Joel I. Klein believes such a
punishment may not be necessary to adequately restrain what the trial judge
characterized as Microsoft's monopoly power over the technology industry,
said two people close to the case, speaking on condition of anonymity.
Gates with copy of Windows 2000
AP/Jeff Christensen [23K]
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New York's attorney general, Eliot Spitzer, on Thursday praised Klein's
handling of the antitrust trial but acknowledged that past cooperation
between states and Justice ``doesn't mean we're going to agree on every
piece, every remedy.''
Spitzer, who declined to comment on settlement talks, described a ``healthy
dynamic'' among the 19 states and Justice debating punishments.
Shares of Microsoft Corp. surged 8.4 percent on reports a settlement could
be near, moving up $8.62 1/2 to $111.87 1/2 on the Nasdaq Stock Market.
Antitrust experts offered several explanations why Justice now may be
inclined to accept lesser punishment than a breakup as part of a settlement,
even though the trial judge strongly has hinted he will rule that Microsoft
violated antitrust laws.
The 207-page-ruling declared Microsoft a monopolist company
Associated Press/ [12K]
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Punishment worked out under settlement could apply immediately to Microsoft
— even before the next election — without the uncertainty over the outcome of
lengthy appeals. Government lawyers also could negotiate a punishment broadly
enough they would apply to controversial practices that were not part of the
current trial, such as Microsoft's dominance in Internet ``server'' software
and in the market for word processors and spreadsheets.
``What Justice has to balance is the benefits in the short run of having a
settlement that might apply arguably to some things more long term that
haven't been litigated, against the more certain relief of a structural
divestiture that Microsoft would oppose,'' said Glenn B. Manishin, an
antitrust lawyer who advocates breaking up Microsoft.
The Justice Department also faces an apparent dearth of support among the
public and the technology industry to break up Microsoft, as well as active
debate among some attorneys general on their best course.
Jackson bluntly told government lawyers in November that he would ``not like
to have to deal with divergent points of view'' on proposed punishments.
Ohio's Betty Montgomery, for example, said earlier that lawyers should seek
prohibitions on Microsoft's conduct, not a breakup.
Microsoft has indicated it would never agree to any settlement that included
a breakup; the company's chief executive, Steve Ballmer, called those
proposals ``reckless and irresponsible.''
The first surprise suggestions that a settlement might be possible came
earlier this month after prominent financial analysts met privately with
Microsoft's new financial officer.
Walter Winnitzki of Chase Hambrecht & Quist said afterward that he believed
``there was a near-term opportunity to have this settled, some language being
given that they wouldn't have any change in culture or structure.''
But there also remain signs of continued acrimony. Sounding far from
placated, Klein told a Senate subcommittee this week that any remedy ``ought
to be commensurate'' with Microsoft's aggressive business practices.
Also, Microsoft e-mailed a newsletter to thousands of subscribers Wednesday
harshly critical of the government. It described as ``unseemly at best''
Justice's efforts to persuade industry leaders to support a breakup. It also
derided breakup plans as ``an extreme and reckless resolution to the
government's antitrust suit.''
———
On the Net: http://www.microsoft.com
>>
MARCH 24, 04:30 EST
Gov't Retreats From Microsoft Split
By TED BRIDIS
AP Technology Writer
U.S. District Judge Thomas Penfield Jackson
Associated Press/Ric Feld [20K]
------------------------------------------------------------------------------
--
WASHINGTON (AP) — Sources close to the Microsoft antitrust case say it looks
like the federal government is backing away from demanding the break up of
the software maker.
The move represents a fundamental shift by the Justice Department, which
largely decided months ago to press for a breakup while anticipating a
strongly favorable ruling from U.S. District Judge Thomas Penfield Jackson in
the coming weeks.
It also puts Justice's stance at odds with some state attorneys general, who
believe that only the harshest punishment is appropriate.
Microsoft has indicated it will not accept any settlement that divides the
company, and U.S. Assistant Attorney General Joel I. Klein believes such a
punishment may not be necessary to adequately restrain what the trial judge
characterized as Microsoft's monopoly power over the technology industry,
said two people close to the case, speaking on condition of anonymity.
Gates with copy of Windows 2000
AP/Jeff Christensen [23K]
------------------------------------------------------------------------------
--
New York's attorney general, Eliot Spitzer, on Thursday praised Klein's
handling of the antitrust trial but acknowledged that past cooperation
between states and Justice ``doesn't mean we're going to agree on every
piece, every remedy.''
Spitzer, who declined to comment on settlement talks, described a ``healthy
dynamic'' among the 19 states and Justice debating punishments.
Shares of Microsoft Corp. surged 8.4 percent on reports a settlement could be
near, moving up $8.62 1/2 to $111.87 1/2 on the Nasdaq Stock Market.
Antitrust experts offered several explanations why Justice now may be
inclined to accept lesser punishment than a breakup as part of a settlement,
even though the trial judge strongly has hinted he will rule that Microsoft
violated antitrust laws.
The 207-page-ruling declared Microsoft a monopolist company
Associated Press/ [12K]
------------------------------------------------------------------------------
--
Punishment worked out under settlement could apply immediately to Microsoft —
even before the next election — without the uncertainty over the outcome of
lengthy appeals. Government lawyers also could negotiate a punishment broadly
enough they would apply to controversial practices that were not part of the
current trial, such as Microsoft's dominance in Internet ``server'' software
and in the market for word processors and spreadsheets.
``What Justice has to balance is the benefits in the short run of having a
settlement that might apply arguably to some things more long term that
haven't been litigated, against the more certain relief of a structural
divestiture that Microsoft would oppose,'' said Glenn B. Manishin, an
antitrust lawyer who advocates breaking up Microsoft.
The Justice Department also faces an apparent dearth of support among the
public and the technology industry to break up Microsoft, as well as active
debate among some attorneys general on their best course.
Jackson bluntly told government lawyers in November that he would ``not like
to have to deal with divergent points of view'' on proposed punishments.
Ohio's Betty Montgomery, for example, said earlier that lawyers should seek
prohibitions on Microsoft's conduct, not a breakup.
Microsoft has indicated it would never agree to any settlement that included
a breakup; the company's chief executive, Steve Ballmer, called those
proposals ``reckless and irresponsible.''
The first surprise suggestions that a settlement might be possible came
earlier this month after prominent financial analysts met privately with
Microsoft's new financial officer.
Walter Winnitzki of Chase Hambrecht & Quist said afterward that he believed
``there was a near-term opportunity to have this settled, some language being
given that they wouldn't have any change in culture or structure.''
But there also remain signs of continued acrimony. Sounding far from
placated, Klein told a Senate subcommittee this week that any remedy ``ought
to be commensurate'' with Microsoft's aggressive business practices.
Also, Microsoft e-mailed a newsletter to thousands of subscribers Wednesday
harshly critical of the government. It described as ``unseemly at best''
Justice's efforts to persuade industry leaders to support a breakup. It also
derided breakup plans as ``an extreme and reckless resolution to the
government's antitrust suit.''
———
On the Net: http://www.microsoft.com
