[FYI] (Fwd) FC: DOJ to Microsoft: We've changed our minds -- no breakup required

["Axel H Horns" <horns@ipjur.com>]

------- Forwarded message follows -------
Date sent:      	Thu, 06 Sep 2001 11:06:23 -0400
To:             	politech@politechbot.com
From:           	Declan McCullagh <declan@well.com>
Subject:        	FC: DOJ to Microsoft: We've changed our minds -- no breakup
 	required
Send reply to:  	declan@well.com

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 




----------------------------------------------------------------------
--- POLITECH -- Declan McCullagh's politics and technology mailing
list You may redistribute this message freely if you include this
notice. Declan McCullagh's photographs are at
http://www.mccullagh.org/ To subscribe to Politech:
http://www.politechbot.com/info/subscribe.html This message is
archived at http://www.politechbot.com/
----------------------------------------------------------------------
---

------- End of forwarded message -------