Microsoft Judge Finds Monopoly, Consumer Harm

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Message from sender:
Wow a ruling against M$.  This could make linux more intresting soon.

News Article: Microsoft Judge Finds Monopoly, Consumer Harm

<FONT SIZE=-1>By David Lawsky</FONT>
WASHINGTON (Reuters) - A U.S. federal judge ruled Friday
that <A HREF=http://quicken.excite.com/investments/quotes/?symbol=MSFT>Microsoft Corp.</A> wields 
monopoly power in personal computer
operating systems, a major setback for the world's largest
software company in one of the biggest antitrust cases of the
century.
In 207-pages on the facts established at trial, District
Judge Thomas Penfield Jackson said Microsoft's actions had done
consumers harm and the company had used its power to punish
competing firms.
The ruling, which sets the stage for a later ruling on
whether Microsoft's actions broke the law, largely sided with
the U.S. Justice Department and 19 states that brought the case
against the high-technology powerhouse.
If Jackson finds Microsoft liable for breaking the law, he
could then move to apply remedies ranging from restrictions on
the way it does business to breaking up the company.
A final decision may not come until well into next year
unless Microsoft and the government negotiate a settlement.
"Three main facts indicate that Microsoft enjoys monopoly
power," Jackson said, citing the company's large and stable
market share, the high barriers to market entry and the lack of
a commercially viable alternative to the Windows operating
system.
"Many of these actions have harmed consumers in ways that
are immediate and easily discernible," another part of
Jackson's ruling said. "They have also caused less direct but
nevertheless serious and far-reaching consumer harm by
distorting competition."
The government had charged that Microsoft used its power to
illegally crush rival Internet browser-maker Netscape and bully
other firms. Microsoft argued it had no monopoly in operating
systems and always acted within the law.
At issue in the case is whether Microsoft reduced choice for
consumers by illegally bullying rivals or simply competed hard
in the fast-changing high-tech industry to bring new products to
market.
Netscape was acquired by Internet powerhouse <A 
HREF=http://quicken.excite.com/investments/quotes/?symbol=AOL>America Online
Inc.</A> in March 1999, a deal which Microsoft said repeatedly made
the case irrelevant.
The Justice Department hailed the ruling as a "tremendous
victory" for U.S. consumers.
Assistant Attorney General Joel Klein told a news conference
that Microsoft's abuse of monopoly power had caused
"substantial harm to consumers and innovation" and should
result in "serious remedial redress."
Spokesman for the states who joined the action, Connecticut
Attorney General Richard Blumenthal, went further than the
federal government, saying that Microsoft should face
far-reaching sanctions.
Microsoft said it disagreed with many of the findings and
vowed to continue to vigorously fight the case.
"We will continue to vigorously contest the issues of this
case in court, but at the same time we will continue to look for
ways to resolve these issues in a fair and responsible manner,"
spokesman Jim Cullinan told Reuters.
Microsoft shares fell to 88-3/16 in after-hours trading
Friday compared with a closing price of 91-9/16 during the
regular session.