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Microsoft breakup dropped

Administration abandons efforts

Issue date: 9/7/01 Section: Front Page
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Justice said it made the about-face to streamline the case and bring it to an end as quickly as possible. The goal, it said, was to “obtain prompt, effective and certain relief for consumers.”

The department said it would still seek a penalty that would open the operating system market to competition.

To that end, the government proposed a penalty similar to some interim penalties imposed by the original trial judge, U.S. District Judge Thomas Penfield Jackson.

Those would, among other things, stop Microsoft from making certain exclusive deals with partners, force computer manufacturers to keep specific icons and programs on the Windows computer desktop, and give other companies more access to Windows blueprints.

Howard University law professor Andy Gavil said such restrictions could affect Windows XP, which has been completed by programmers but won’t reach stores until October.

‘‘It’s hard to square the interim remedy with Windows XP,’’ Gavil said.

One of Microsoft’s chief rivals said it was happy the government plans to focus on the new systems.

‘‘What’s clear today is that the Department of Justice is prepared to take a hard look at Windows XP and will pursue a quickly imposed remedy to open up competition on the desktop,’’ AOL Time Warner executive John Buckley said.

President Bush, who during last year’s campaign expressed concern that Microsoft might be ruined by the antitrust case, made no direct comment on the legal strategy change. He said of the case, ‘‘I expect the Justice Department to handle that in a way that brings honor and thought to the process.’’

White House and Justice officials said Bush had brought no pressure to bear on the decision.

The top Democrat on the House Judiciary Committee, however, sharply criticized the decision and demanded records of any contacts between the White House and Justice Department on the case.

Microsoft is a top contributor to the Republican Party, and company executives have been frequent guests at the White House.

‘‘In my judgment, eliminating prosecutorial options at the same time that the defendant has failed to yield any of its own options threatens to weaken and slow down the case,’’ said Rep. John Conyers, D-Mich.

District Judge Colleen Kollar-Kotelly took over the case after a federal appeals court earlier this summer reversed Jackson’s ruling breaking Microsoft in two and disqualified him from further proceedings because he made pejorative comments about the software giant while presiding.

While the appeals court threw out key portion of Jackson’s ruling, it upheld the core decision that Microsoft had operated as an illegal monopoly that stifled competition and hurt consumers.

Since that ruling, much debate has been focused on whether the new Windows XP product might not be designed to do the same thing — hurt competition. Microsoft denies it is trying to hurt competition and is simply adding features that consumers want.
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