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



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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