-Caveat Lector-

Secret Sweetheart deal between DOJ and M$ execs?

On Newsforge, Feb 20, 11:58:

http://www.newsforge.com/article.pl?sid=02/02/20/1619205

Wednesday February 20, @11:58AM [ Government ] - By Jack Bryar -

Is it really possible that when Microsoft set out to market a "Linux killer"
last November it began to get itself into more legal difficulty than ever
before? And could it blow up into a political scandal as well?

Perhaps the weeping Canadian figure skaters kept you distracted this week,
but if you were sifting through the public comments in the Microsoft
antitrust case, you'd notice that the New York Times, among others, is
hinting that the sweetheart settlement proposed between Microsoft and
Assistant Attorney General Charles A. James is about to blow up, big time.

The proposed antitrust settlement between Microsoft and the U.S. Department
of Justice drew about 30,000 comments, more than any business case in recent
memory. The DOJ and the court released 47 of the most substantial of these
comments. They are worth reading.

Most of them lay out the technical and legal flaws in the settlement. A
couple of comments, notably the detailed suggestions of connectivity maven
Dan Kegel, lay out the wording needed to make the settlement an effective
document.

However, several other comments focused on whether or not the Microsoft and
the DOJ have violated the Tunney Act in its first big test since the Act was
passed in 1974. At issue: the legal obligation of Microsoft and the DOJ to
document exactly what was said to justice officials by Microsoft during
negotiations. Was there an covert deal, generated by secret Microsoft
lobbying and tons of soft money contributions?

Among the curious is none other than former U.S. Senator John V. Tunney, the
author of the sunshine legislation bearing his name. The Tunney Act is
supposed to prevent government litigators from entering into sweetheart deals
with their adversaries. One of the mechanisms of the act is supposed to be
full disclosure of all contacts and all representations made during
negotiations between parties. Tunney filed a comment with Judge Colleen
Kollar-Kotelly insisting that, in order to comply with the Tunney Act,
Microsoft must specify all contacts between it and the government and what
was said. In his statement, Tunney said, "In my opinion, it is essential that
all discussions between the defendant corporation and the government ... that
might have led to a proposal settlement decree be disclosed."

The Senate Judiciary Committee made much the same point, stating that
"Microsoft has made no secret of the political influence it has sought to
create during this trial." The committee suggested that is was concerned that
Microsoft had engaged in precisely the sort of secret lobbying of Justice
Department officials that the Tunney Act was designed to expose.

The New York Times has also weighed in with an opinion that, contrary to the
Tunney Act, Microsoft has not disclosed who attended this and other meetings.
"Nor has Microsoft described in even the most cursory fashion the substance
of any of these communications," the Times stated.

Two sets of dates are of particular interest to outside observers. These are
October 5 and October 30-31.

I earlier wrote a column about the Halloween negotiations between Microsoft
and Assistant Attorney General Charles A. James, when James effectively left
the Justice experts advising him outside the room. Litigators for the states
that have refused to accept the settlement are understandably curious about
just what was said in those negotiations.

They are even more curious because of the possibility that James and his
staff may have been misled by Microsoft officials at an earlier meeting, and
the effect it may have had on any discussions of unbundling.

Unbundling was an idea in circulation during most of the antitrust
litigation. Part of what brought Microsoft into court was the company's
bundling of Internet Explorer (and since then, its video package) into the
core of the Windows operating system. Microsoft vehemently insisted
throughout the last several years that unbundling Explorer, in particular,
couldn't be accomplished without wrecking the integrity of the platform.

The state attorneys general could not help but notice when last November
Microsoft announced ... an unbundled Windows! Marketed as a Linux killer,
Microsoft newest iteration of its codebase was called Windows XP Embedded. To
the holdout states' way of looking at it, here were all the components that
Microsoft asserted couldn't be separated, available at a price for developers
who wanted to Windows enable their CD players or cell phones.

It would be hard to imagine that in October, Microsoft senior management
would not know about XP Embedded's pending release in November. This why
observers are curious about what was said at a "technical" meeting held
October 5 between Microsoft and Justice officials.

Microsoft has failed to disclose the purpose of the meeting, but its
representatives there were a who's who of senior Microsoft managers most
likely to be affected by any unbundling and most likely to make a technical
case for why the Microsoft code elements couldn't be separated. Accompanied
by a person listed in Microsoft documents as "Chad Knowlton," were Linda
Averett, the product unit manager for the Windows Digital Media Platform
division. Joining them was Michael Wallent, the product unit manager for
Internet Explorer, and Robert Short, vice president for Windows Core
Technology.

What they discussed has not been made public. Whatever they said made an
impression, as unbundling was taken off the table as a possible remedy, even
though it was the remedy that plaintiffs had asked for at the beginning of
litigation all these years ago. Litigators for the states are understandably
curious about just what exactly was said by these individuals. While
Microsoft is claiming that the issue is irrelevant to the plaintiffs'
original complaints, others are curious about what is being covered up, and
whether Microsoft is about enmesh itself into further legal trouble.

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